Coinbase Suspends Affiliate Program, Sparking Insolvency Rumours

coinbase affiliate program

The announcement of leading crypto trading platform Coinbase suspending its affiliate program has caught the eye of prominent crypto opinion leaders, sparking insolvency rumours in the midst of a broader liquidity crisis in the sector.

However, many – including the company’s CEO – have come out in support of the company.

Upon being on-boarded to Coinbase’s soon-to-be cancelled affiliate program, affiliates gain access to earning commissions from creating their own content, and Impact tracking software. The affiliate program’s suspension will be effective from July 19.

Influencers in the crypto sphere have been fearing that Coinbase’s decision to cancel the program is a “major” red flag, and is one that was made in order to cut costs during the current brutal crypto bear market. In the past few months, the crypto space has been rocked with lenders such as Voyager, Celcius, and Vauld falling victim to the dangers of high-yield, high-risk lending practices.

The cancellation of the Coinbase affiliate program has come after the company laid off 20% of its workforce in June, as well as arescinding job offers for potential employees, and phasing out their Coinbase Pro program later this year, aiming to merge Pro features into its consumer app. 

Coinbase has cited that current market conditions have caused it to arrive at this decision, saying that it cannot continue rewarding incentivised business on the platform for the time being. Coinbase says that it will resume its affiliate program in 2023, but no firm date has been announced.

 

Dan Held, CEO of crypto exchange Kraken, tweeted that the suspension of an affiliate program is not an indicator of a liquidity crisis. Other crypto influencers have noted that industry leaders  and institutional crypto adoptees would not allow a Coinbase collapse to happen.

It can be seen that in these current market conditions, Coinbase would redirect such funds for affiliate payouts to further grow its user base, and to invest in new marketing activities and channels.

Coinbase CEO Brian Armstrong has tweeted that insolvency is not in sight, as the exchange  has experienced massive growth in 2021, and is expecting more. However, Armstrong notes that while the crypto industry in any given year can grow ‘300-500% or -50%,’ Coinbase is strategically using these down market periods to keep building and shipping products.

what can blockchain do

What Can Blockchain Do?

In many people’s minds, cryptocurrency and blockchain are synonymous with one another. Although closely related, they are not one and the same, and it is

Read More »

Share Post:

Twitter
LinkedIn
Telegram
Facebook
Pinterest
what can blockchain do

What Can Blockchain Do?

In many people’s minds, cryptocurrency and blockchain are synonymous with one another. Although closely related, they are not one and the same, and it is

Read More »