Friday, December 2, 2022
HomeCryptoAnnounced bankruptcy of Coinbase: false rumors or process already underway?

Announced bankruptcy of Coinbase: false rumors or process already underway?

The (temporary) shutdown of Coinbase’s affiliate marketing program in the US comes from media sources agreeing on the July 19 date. Thanks to leaked emails, Business Insider was thus able to discover that Coinbase informed its partners of the program.

It was not an easy decision, and was not taken lightly, but, due to crypto market conditions and the outlook for the remainder of 2022, Coinbase is unable to proceed. to support incentive traffic on its platform “says Coinbase in one of the emails.

Although the listed company has indicated that the resumption of the program could take place next year, this is not enough to reassure the community. On Twitter, CoinGeek’s Kurt Wuckert Jr for example, Coinbase is going through a liquidity crisis exemplified by the shutdown of Coinbase Pro and the deactivation of the affiliate program.

In the last month, Coinbase combined their USD and USDC markets, closed Coinbase Pro and turned off their affiliate program. This is after over a year of insiders selling $COIN stock which has absolutely cratered. I smell a liquidity crisis. Where’s the money, @coinbase?

Unfounded rumors?

It is difficult to sort out the true from the false in the multiple information that is currently surfacing regarding the fate of Coinbase. The company is certainly going through difficulties and has seen its price plunge by 70% over the last six months, but an upturn has been visible for a few weeks on the Nasdaq.

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Affiliate marketing is one of the many additional levers we use to reach target audiences, and the program’s temporary pause is in no way a sign of a cash flow issue. “, we reaffirm on the side of the company

Additionally, as a publicly traded company, Coinbase is required to publish its balance sheet and any other information that may be detrimental to shareholders. Famous crypto YouTuber Jungle inc. recently estimated Coinbase’s cash reserves at around $6 billion, in addition to sizable crypto reserves.

Coinbase has 6 billion in cash + large crypto reserves. They will be fine! With that being said I just transferred everything off. 🍾🍾🍾

So there should be no rush to abandon Coinbase, as a quick rebound in the stock market is possible if the crypto market recovers.

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