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Amidst the heavy crypto market downturn, many crypto firms have been rumored to face liquidation – Coinbase met a similar fate.
Recent crisis that the crypto market went through not only resulted in reducing the value of numerous crypto assets, but it also made a huge impact on crypto firms with direct exposure to digital assets. Many crypto firms have seen liquidation crises while some of them have filed for bankruptcy. Leading crypto exchange Coinbase is also said to be facing a similar fate.
By Friday night, rumors about – Coinbase to face a liquidity crisis soon – surfaced and spread like wildfire all across the space. All this started with assumptions following the leaked emails. These leaked emails consisted of the statements that crypto exchange would soon put a halt on its affiliate program.
As per the reports, the emails stated that this was not an easy decision and it was not made quickly and lightly. But given the volatile and vulnerable market conditions, it is becoming hard for Coinbase to keep the support continut for its platform’s incentivized traffic.
Following the email, some people went to Twitter and made claims that the decision was symbolic and signified the liquidity problems of Coinbase. Some noted that several decisions of Coinbase including the recent decision of affiliate program suspension clearly show that a liquidity crisis is soon to approach.
However, the community took the lead in no time and came forward to respond to the rumors. Take for instance, a Tweet made by Dan Held – Director Growth Marketing at Kraken – stating that Coinbase has no liquidity crisis. While one of the leading developers from the creator of Coinbase affiliate program, NJ Skobene has also made it clear that the removal of this program should not be treated as a warning sign.
A popular crypto YouTuber, Jungle Inc, also tweeted that the leading US crypto exchange has about $6 billion in their cash reserves along with a significant amount of crypto reserves. On Tuesday, 12th July – co-founder and CEO of Coinbase – Brian Armstrong mentioned in a tweet that the crypto exchange company is still making adjustments according to its growth that it had obtained last year in 2021.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
