Ben Armstrong, a major crypto influencer and creator of Bitboy Crypto, made a warning to his followers about a famous Bitcoin exchange. Accordingly, the cryptocurrency exchange has the potential to be the last link in the bankruptcy chain in the bear market. Here are the details…
“This Bitcoin exchange may go bankrupt”
Business Insider has announced that Coinbase has temporarily suspended its affiliate marketing program in America. Coinbase will suspend its program from July 19, according to an email to the three creators. The stock market cited the current market situation as the reason for its decision. Accordingly, the current state of the crypto market was the main reason for the shutdown of the program. Ben Armstrong, a famous crypto phenomenon, warned his followers. Armstrong said that in light of recent developments, Coinbase is at risk of bankruptcy. Then Mike Dudas, co-founder of 6th Man Ventures, took his place among the names participating in the discussion. Dudas described the Bitcoin exchange’s NFT platform as a failed launch. He then said about the NFT market that it “died as it turned out”.
Coinbase tries to survive the bear market
Coinbase has shut down its affiliate programs in the US, citing the market. However, the data reveals that the situation of the Bitcoin exchange is worse. Coinbase stock prices have fallen sharply. A Coinbase share, which was $357 during the ATH era, is worth $53.79 today. So Coinbase shares have lost 85% since their ATH. Recently, Goldman Sachs downgraded Coinbase’s sell rating. As Cryptokoin.com reported, the crypto exchange is struggling with the bear market. The market cap of the exchange was $75 billion at its highest level last year. Its current market value is only $12.4 billion.
Coinbase has not fully denied the allegations. It sent a letter to shareholders in its first quarter financial report. Accordingly, he told shareholders that his first quarter results were in that state due to market volatility. Coinbase lost $430 million in the first quarter of 2022. This resulted in a huge drop in cryptocurrencies and trading volumes on the platform. Additionally, Coinbase has taken a number of steps to cut costs this year. These steps include laying off 18% of all staff.
Competition between Binance and Coinbase grows
In addition to all this, Coinbase is also trying to survive the fierce competition in the market. The Bitcoin exchange has strong competitors such as Binance, FTX and Robinhood. Binance is Coinbase’s biggest competitor. Binance, the world’s largest cryptocurrency exchange, is spreading in America with its Binance.US arm. The company recently announced the launch of its zero-fee Bitcoin spot trading product on its US arm. The vast majority of Coinbase’s user base lives in the United States. However, Binance’s zero-fee transactions cost $3.99 on Coinbase.
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