Since its all-time high of $357, Coinbase’s stock has plummeted by roughly 85%.
The business said that the volatility directly influenced its first-quarter earnings.
Coinbase’s affiliate marketing program in the United States has been temporarily suspended. In an email issued to three founders, the crypto exchange cited the present market circumstances and the dismal outlook for the crypto sector as reasons for suspending its program on July 19.
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Coinbase’s recent history implies that the company may be in financial difficulties, according to a prominent crypto influencer and founder of Bitboy Crypto, Ben Armstrong. In addition, 6th Man Ventures co-founder Mike Dudas characterized the NFT platform of the crypto exchange as a “failed launch” and “dead on arrival.”
Struggle Continues For Coinbase
Since its all-time high of $357, Coinbase’s stock has plummeted by roughly 85%. Due to the ongoing bear market, Goldman Sachs has just lowered Coinbase’s rating to sell. Last year, Coinbase had an ATH value of $75 billion, but that value has since dropped to only USD 12.4 billion.
In a letter to shareholders, the business said that the volatility directly influenced its first-quarter earnings in the stock market. In the first three months of 2022, they recorded a $430 million deficit. As a result of a decrease in trading volume and assets on the platform, the firm said the personnel would be reduced by 18 percent as a cost-cutting measure.
FTX and Robinhood, but mainly Binance, has severely threatened Coinbase’s business model. Zero-fee Bitcoin spot trading has now been launched on the US branch of Binance.US, the global crypto exchange. Coinbase, on the other hand, charges a $3.99 spot trade fee.
The CEO of Binance, Changpeng Zhao, also went to Twitter to point out the difference in fees. Binance.US, he said, does not profit from the spread either.