In trouble, Coinbase suspends its affiliate program

The market share of the American platform Coinbase fell to less than 3% in July as the cryptocurrency industry is in deep crisis. It is now the 14th largest cryptocurrency exchange in the world, up from being in the top 5 at the end of 2021.

Coinbase’s market share plummets

The cryptocurrency trading industry is ruthless. Coinbase, one of the major US crypto exchanges, has suffered from particularly intense competition. A few months after its IPO, the company, founded in 2012, fell from fourth to 14th place worldwide in July, penalized by a drop in trading volumes.

Now, Coinbase has a 2.9% market share, according to analyst Mizuho. And this ratio is in freefall. In the first quarter, the company captured 5.3% of the market, before dropping to 3.6% in the second quarter.

Coinbase faces stiff competition from other centralized exchanges like FTX and Robinhood, Binance, especially from Binance.US. The US subsidiary of global cryptocurrency exchange Binance, recently announced the launch of a free bitcoin spot trading product. On the other hand, Coinbase cash transaction fees reach $3.99.

More recently, Goldman Sachs downgraded Coinbase to sell after the platform struggled as the bear market continued. Coinbase, which was valued at $75 billion last year, is down to just $12.4 billion currently.

The company said in a letter to shareholders that its first quarter results were directly impacted by market volatility. It reported a financial loss of $430 million in the first quarter of 2022. Trading volume and assets on the platform have seen a significant decline.

In early June, Coinbase CEO Brian Armstrong announced layoffs of 18% of its workforce, or approximately 1,100 employees. Coinbase (COIN) shares are down more than 78.57% on the Nasdaq so far this year. Last month, the company laid off about 18% or more than 1,000 employees amid bear market pressure.

Coinbase suspends its affiliate program

Coinbase will shut down its US affiliate program on July 19, Business Insider learned through leaked email exchanges.

The company, one of the world’s leading cryptocurrency exchanges, said it was a tough decision, driven by the difficulties the market is currently going through.

“We regret to inform you that Coinbase will be temporarily closing its affiliate program in the United States effective Tuesday, July 19. It was not an easy decision, nor taken lightly, but, due to crypto market conditions and the outlook for the remainder of 2022, Coinbase is unable to continue supporting the drive traffic to its platform.”

The program is expected to restart in 2023, but Coinbase did not provide a specific date. Concretely, this means that influencers who earn commissions by bringing new customers to Coinbase will no longer be able to benefit from these bonuses.

According to the newspaper, prior to this update, some affiliates claimed that the company had significantly reduced commission bonuses – up to 90%.

Coinbase has been bearing the brunt of falling tech stocks for months. Its shares were trading at just under $60 on Monday July 18 while they were worth more than $200 at the end of March 2022. The situation has raised serious concerns about the financial health of the company. Coinbase is one of the world’s leading cryptocurrency exchanges, with a trading volume of over $335 billion in 2021 and 11.4 million registered users.

We want to say thanks to the writer of this short article for this incredible content

In trouble, Coinbase suspends its affiliate program


Take a look at our social media profiles and other pages related to themhttps://metfabtech.com/related-pages/