Coinbase 1 Day Away from Shutting Down US Affiliate Marketing Program: Twitter Reacts

Coinbase is one day out from temporarily shutting down its U.S. affiliate marketing program, with plans to relaunch it in 2023, according to a Business Insider report. However, no plans regarding the precise date and details of the relaunch have been made public. 

That report sent Twitter into a flurry, with many on the social media app suggesting that Coinbase is experiencing liquidity problems while others saying that Coinbase users and the overall crypto community have nothing to fear. 

Nate O’Brien, a Twitter and Youtube crypto personality, tweeted that this was a “MAJOR” red flag, suggesting a liquidity crisis could follow. 

He then backed up that tweet saying it could be the result of cutting costs, but questioned Coinbase’s unwillingness to pay even $5 for a new user. 

Crypto_fired responded to O’Brien saying that this is “wartime for tech companies” and that everything matters for these companies at the moment, even if it is a mere $5. 

Twitter user mhuntinca also weighed in on the conversation saying affiliate marketing is the most cost effective way to acquire customers. “You can literally bake your profit margin into the calculation and ensure every new customer through an affiliate is profitable from the start,” the tweet read. 

Grey Jabesi tried to ease tensions about the Coinbase bankruptcy talk, ensuring users and the crypto community that Coinbase has “billions in cash” and they’re simply restructuring their affiliate program.

Dan Held, a verified Twitter user with over 600,000 followers, shared the same sentiment held by Jabesi, tweeting “Coinbase doesn’t have a “liquidity crisis” bc they shut down their affiliate program.” 

These are just some of the thousands of comments Twitter users shared when the report came out. The majority of these comments fell within two points of view: a liquidity crisis will follow or Coinbase has plenty of fiat and is simply looking to restructure their program.  

While it is still unknown if Coinbase is just restructuring their affiliate program or if something worse is on the horizon, this report came out one month after Coinbase’s CEO, Brian Armstrong, announced that 18% of his staff, about 1,100 employees, had been laid off. 

The crypto exchange also lowered its commission rate in June for influencers using the exchange’s affiliate marketing program, according to a Bloomberg report last month. 

Perhaps it is just precautions taken amid market turbulence that has seen liquidity issues from hedge funds and lenders alike including Three Arrows Capital, Celsius and others. 

Author: Tyler Irvin

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