Coinbase, one of the world’s leading crypto exchanges, made a striking announcement about the Borrow service, which offers crypto money as collateral to get cash loans.
In an email sent to Borrow customers on May 3, and also posted on Twitter by buyers, Coinbase said that customers will no longer be able to obtain new loans with Borrow from May 10, without giving any reason. The Borrow service generally offered loans of up to $1 million without credit checks, provided users had Bitcoin as collateral. Considering the turbulent state of the crypto market, this move by Coinbase has confused investors.
Statement Regarding the Incident Received from Coinbase
Emphasizing that there will be no impact on outstanding loans and that customers do not need to take any further action, Coinbase made a statement on the subject, “We regularly evaluate our products to make sure we prioritize the offers that our customers care most about.” said.
The increasing complexity in the crypto industry and the news feed of the market has been further ignited after this decision by Coinbase. Coinbase, which has just started to plan as of May 10, has given signals that they can make changes in other services as well.
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