The largest cryptocurrency exchange in the United States, Coinbase, is having some difficulties. This shows that the crypto market is dire, to the dismay of both consumers and investors. According to rumors, the exchange’s affiliate program may be temporarily suspended in the United States.
Even if the crypto market has had a rough go of it lately, this could signal that the problems go far more profound. Coinbase’s worldwide operations have been going through a difficult patch, and the market crash has taken a toll. To learn more, keep reading.
Coinbase (COIN) decided to go public on April 14, 2021, and since then, investors have had to deal with a steady stream of disappointments. The company’s stock started at $381 on the NASDAQ, but the following months saw it fall to the $230 range, remaining until October ’21.
During early October and November, the crypto rally supported the share value, but it quickly followed the remainder of the market downhill. The firm’s stock price has declined dramatically since it achieved a high of $365 in November. It is presently trading at $53.75.
Since November, sales have fallen by more than 85%. Any substantial problems at Coinbase might have a devastating effect on the market’s ability to recover. It is unlikely that Coinbase would go bankrupt; nonetheless, a recent round of layoffs suggests Coinbase’s management is focused on cutting expenses.
Coinbase And The Bear Market In The Cryptocurrency Sector
This year, Coinbase has focused on reducing its overall operational expenses.Just over a third of the company’s 1,100 workers were let off last month, and employment offers were made to potential employees previously agreed upon.
To be sure, according to a Coinbase news release from earlier in the month, the California business announced plans to open offices in France, Italy, Spain, or the Netherlands while also bolstering its footprint in the United Kingdom Ireland, and Germany.
Too far, it is the only crypto exchange to have been listed on the New York Stock Exchange, following its debut in April of that year. According to Yahoo Finance, shares in Coinbase Global, Inc. have plummeted 82% since its introduction, from $342 per share to about $61 per share.
A Description Of What Is Going On And Why It Is Going On
Volatility and unpredictability are a must in the crypto world. Every time the wind shifts, you never know what will happen the next day. It hasn’t been an ideal situation for Coinbase. Recent reports have been somewhat alarming.
The US cryptocurrency exchange and its users are in for a wild ride. According to emails from Business Insider, Coinbase is considering temporarily discontinuing its affiliate program in the United States. The ruling might go into effect on July 19th. The promoters’ claims that the corporation has reduced the commission incentive by 90% give credence to the allegations.
As stated by Coinbase: “This has not been a simple decision, nor has it been done lightly; however because to crypto market circumstances, Coinbase has been unable to continue funding incentivized visitors to its site for the duration of 2022.”
According to sources from the corporation, the program will restart in 2023. However, there has been no announcement of a particular date.