Coinbase Says it Can't Afford to Keep Paying Affiliates

Leaked emails revealed on Friday that Coinbase would be shuttering its affiliate program for the foreseeable future due to “market conditions.”

“We regret to inform you that Coinbase will be temporarily shutting down its Affiliate Program in the United States with an effective date of Tuesday, July 19th,” the company said in an email to affiliates. “This has not been an easy decision, nor was it made lightly, but, due to crypto market conditions and the outlook for the remainder of 2022, Coinbase is unable to continue supporting incentivized traffic to its platform.”

Cryptocurrency exchanges universally offer affiliate programs, which allow users to earn commissions when they refer others to their platforms. Some platforms have been slow to approve new affiliates amid this year’s lackluster market conditions, but Coinbase is the first exchange to cancel agreements with preexisting affiliates.

The announcement may spark fear among the company’s users. A slew of exchanges announced insolvency or bankruptcy over the last month while simultaneously freezing customer assets. Celsius Network became the first on June 12, followed by CoinFLEX (June 23), Voyager Digital (July 1), and Vauld (July 5). Celsius and Voyager have both filed for Chapter 11 bankruptcy.

Coinbase said it would reopen its affiliate program in 2023, but did not provide a date. The company’s stock price sat at $53.79 as of Friday, down more than 84 percent since it debuted in April 2021. The announcement came after markets closed on Friday, meaning the stock could sink further on Monday.

Looking for a Solvent Exchange?

Speaking of affiliate programs, GoblinCrypto has partnered with two exchanges that have not displayed signs of funding difficulties: Phemex and Mexc. If you’re looking for an alternative to Coinbase, you may want to give them a try.

What’s the difference between them and Coinbase? Here are a few things.

Customer Service: As anyone who has had the misfortune of dealing with Coinbase’s customer service team is aware, staffers became dysfunctional over the last year. It’s common to interact with employees who lack basic knowledge related to Coinbase or even cryptocurrency more broadly, rendering them unable to help with even basic requests. On top of that, it can take days or even weeks to receive a reply. Presently, that isn’t the case with Phemex or Mexc. For now, they are much more responsive (and helpful) than Coinbase staff.

Cryptocurrency Offerings: Both exchanges offer more tradable cryptos than Coinbase. It’s become common over the last couple of years to hear customers complain that Coinbase listings are based more on nepotism than factors related to quality.

Easier to Use: Neither Phemex nor Mexc will require you to send copies of sensitive documents or information in order to sign up. And neither one will spontaneously lock your funds, demanding that you send multiple selfies along with copies of more sensitive documents in order to unlock them. Just give them an email address or phone number and you’re set.

Additionally, you’ll be able to receive different sign-up bonuses and discounts on trading fees if you use our links. Click here if you’d like to explore Mexc. Click here if you’d like to explore Phemex.