US affiliate program of Coinbase halted due to unsuitable market
Beginning July 19th, Coinbase will no longer offer its affiliate programme within the United States. The publicly traded company’s choice was justified by the current market climate and dismal forecast.
In a recent communication, Coinbase reminded its partners that, by all US affiliate links must be removed. The message also mentioned that the United States would be flagged as a restricted zone in IO going forward. The stock market has requested that all inquiries be sent to the accelerator program’s official link. According to reports, consumers would have access to all changes, taking into account current trends in the industry.
The latest update to Coinbase has been released at a time when the exchange is seeing its market share decline. From its all-time high of $357, the stock price of the corporation has dropped 84% to its current price of $53.42.
After Goldman Sachs cut the stock to a sell recommendation in June, the prognosis for the company has not improved much. Reportedly lower trading activity and volumes after the crypto market fall are to blame for the decrease.
Chief Executive Officer Brian Armstrong of Coinbase confirmed the company’s troubles in June by announcing a reduction in staff of 18%. According to the accompanying executive statement, the economy is deteriorating and may soon enter a recession. Armstrong insisted that decreasing expenses and increasing productivity were of paramount importance to the company’s survival.
Key service providers in the cryptocurrency business have gone bankrupt. After freezing customer withdrawals of cryptocurrency due to unfavourable market sentiment, crypto lender Celsius recently filed for bankruptcy in the United States. Other organisations that have risked bankruptcy due to the weakness of crypto lenders and hedge funds include Three Arrows Capital and BlockFi.
Some variables that have kept cryptocurrencies in a prolonged downward momentum are the high rate of inflation and the interest rate hike by the US Federal Reserve. Crypto trading remain pessimistic despite a minor price recovery. At the time of writing, Bitcoin was trading at $20,946, up 0.24 percent from the previous day, while Ethereum was trading at $1,259, up 5.40 percent from the previous day.