Rumors spread about Coinbase default

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2022-07-21 19:14:42

After Coinbase decided to discontinue its affiliate program, rumors surfaced that the exchange was facing a liquidity crunch.

How true is the rumor of Coinbase bankruptcy?

Mixed opinions emerged when Coinbase discontinued its affiliate program. Some say this could be a sign the company is on the verge of default.

A media representative of CoinGeek, Kurt Wuckert Jr tweet in recent post that this could signal an impending liquidity crisis, as cryptocurrency exchange Coinbase has closed its services. “Coinbase Pro” and “Affiliate Marketing Program”.

In fact, Wuckert is not the only individual with this view. Analysts Nate O’Brien and BitBoy have a similar warning.

Via Twitter, BitBoy said that Coinbase’s default “will deal a blow to the crypto market in an unprecedented way.”

However, a part of the community thinks that these are views aimed at FUD. An account on Twitter stated that it is normal for companies to cut costs during a market downturn.

CEO Dan Held of electronic exchange Kraken said that the suspension of the affiliate program is not a sign of a liquidity crisis.

Many other individuals also support this point, with NJ Skoberne tweeting that “stopping that program has nothing to do with liquidity.”

Forestincxrp, a Crypto Youtuber tweeted that Coinbase has about 6 billion USD in cash and a huge crypto reserve fund. But he added that he no longer holds his assets on Coinbase.

John Deaton, a crypto lawyer believes that industry leaders will “Never allow Coinbase to go bankrupt”. The reason given is that if it happens, the crypto industry will see a wave of panic collapse due to a domino effect.

For his part, Coinbase CEO Brian Armstrong tried to quell this bad rumor, asserting that Coinbase is fully insured and the profits from the 2021 uptrend season are enough for the company to weather the “crypto winter.” “.

The recent liquidity crisis in the crypto space has “killed” 3 major companies, 3AC, Voyager, Celsius and caused thousands of investors to lose billions of dollars.

#Rumors #spread #Coinbase #default

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