Cryptocurrency

Coinbase freezes affiliate program due to liquidity problems

Published

1 month ago

July 17, 2022

Several users of the exchange received emails indicating that Coinbase’s affiliate program was being suspended. The exact timing of the resumption is not specified. Exchange representatives said in the emails that the program is likely to resume next year.

When partners sign up, they gain access to promotional content and can promote the exchange using links in articles on their resources. Affiliates can receive a 50% commission for the first 3 months after joining.

As indicated by the leadership, this is a forced decision, caused by prevailing market conditions. For his part, expert Ben Armstrong said that Coinbase’s actions could cause problems. He advised his subscribers to be very careful now. If the exchange turns out to be insolvent, it will lead to strong shocks in the market.

Venture capitalist Nate O’Brien holds a similar view. O’Brien also said on Twitter that he fears the suspension of Coinbase’s affiliate program signals a looming insolvency crisis. In his view, Coinbase’s reluctance to pay commissions to its affiliates could be the result of cost-cutting in the current bear market.

At the same time, the closing of the affiliate program for a while could be a marker that the exchange is planning new marketing programs for its users. Such a scenario also cannot be ruled out.

Meanwhile, at the end of the week, rumors began to circulate that the exchange already had liquidity problems. They just intensified after the management decided to suspend the affiliate program. Business Insider reported that users had begun to receive letters about its suspension.

As data from CryptoQuant showed, at least 50% of stablecoins on Coinbase Pro left the exchange 2 days ago. Their total price was about $248 million. The percentage of stablecoin churn on the exchange was much higher than on other platforms.

The management of the exchange has not yet commented on the situation. So it is possible that the closing of the affiliate program is caused by liquidity problems on Coinbase.

The value of the stock exchange shares continues to hold the minimum values. Although the exchange managed to rebound from the critical level of $40 per unit in monthly terms and get 5.02% growth, globally, the crypto exchange shares continue to remain at the bottom, having lost 84.27% of the value from the moment of listing.

Cryptocurrency

Sanctions against Tornado Cash boosted TORN token trading volumes

Published

1 day ago

August 16, 2022

letizo News

Tornado cash (TORN) token trading volumes jumped sixfold amid the announcement of sanctions against the mixer. This was pointed out by Kaiko analysts in their newsletter. TORN’s trading volume rose from less than $5 million to $60 million on the cryptocurrency exchange Binance. The growth in trading volume was also recorded on OKEx, but there the figures were significantly lower. Tornado cash sanctions are to blame.

At Binance, tornado cash sold out. According to Kaiko, several decentralized exchanges (including Uniswap, dYdX, and Aave) imposed restrictions on wallets contacting the Tornado Cash mixer. Whether this was the reason for the increase in liquidity is unclear.

However, the increase in trading volume seems to have led to heavy selling of TORN. As the volume of capital on the centralized exchanges increased, TORN quotations fell faster and faster. Now, TORN in the TORN/USDT pair is trading at $12.7, according to Nomics. Over the past seven days, the price of TORN has fallen by more than 23%. Market capitalization collapsed to $19.3 million.

Recall that in early August, the U.S. Treasury Department’s Office of Foreign Assets Control imposed sanctions on the Tornado Cash mixer. The regulator estimated that the platform had helped launder more than $7 billion in assets since its launch in 2019.

Shortly after the sanctions were announced, Circle, the issuer of one of the most capitalized Stablecoins, USD Coin (USDC), froze 75,000 USDC of the cryptomixer’s users and 149 USDC that the project received in donations. Analysts at The Block Research found that transfers to the platform were down 78.5 percent compared to the period before the announcement of sanctions against Tornado Cash.

We previously reported that S&P Global downgraded Coinbase to speculative.

Cryptocurrency

Eqonex news: High competition buried public crypto exchange Eqonex

Published

1 day ago

August 16, 2022

letizo News

Eqonex news: public U.S. crypto exchange Eqonex (EQOS) will close its services to customers on August 22 due to high market competition and a decline in trading volume. The exchange announced this on its official website.

The company will close its trading functionality at the end of August and will phase out cryptocurrency withdrawals on September 14. Also, Eqonex will stop trading the native token EQO, whose trading volume over the past month only occasionally and briefly, exceeded the threshold of $10,000.

The company will not close, but will continue to provide capital management and custody services for cryptocurrencies in the form of a custodian.

According to Eqonex CEO Jonathan Farnell, closing the exchange will improve Eqonex’s financial position by significantly reducing its cost structure and freeing up resources to spur growth in segments where the company has a “significant competitive advantage.” At the time of writing, the market has not reacted to the news of Eqonex’s closure.

In July, many cryptocurrency exchanges saw a decline in trading activity. The strongest decline in trading volume was seen on exchanges such as LBank (by more than 50%), Huobi (by 31.3%) and Gate (by 31.2%). crypto.com and Bitfinex saw trading volume drop by 25%.

On the other hand, some exchanges saw a significant increase in spot trading volume in July. Binance US increased by 76.7%; OKX by 30%, and Phemex by 227.4%. Bitmart and Binance grew by 18% and 9.3%, respectively.

We previously reported that Investors Asked Asian Crypto Exchange’s CEO To Step Down.

Cryptocurrency

Bitcoin plummets as miners sell inventory? Miners continue to sell bitcoin, albeit in smaller volumes

Published

1 day ago

August 16, 2022

letizo News

bitcoin plummets as miners sell inventory

Despite lower market volatility, miners are still dumping bitcoin. Because of this, bitcoin also plummets as miners sell inventory. This was reported in a report by Arcane analysts. According to published data, in July, miners poured 6200 BTC (~$149 million at the current exchange rate). By comparison, miners sold out about 15,000 BTC in June.

However, even though the scale is down, July was still the second highest month since the beginning of 2022 for bitcoin sales by miners. Arcane analyst Jaran Mellerud claims that public miners sold 158% of the cryptocurrency mined during July. This is the third month in a row that miners have sold all the cryptocurrency (and even more) than they manage to mine in a month. It was also previously reported that bitcoin miners sell off because of unprofitable mining.

Arcane named mining companies Core Scientific and Bitfarms as the main culprits of the dump. This, according to Mellerud, is because the companies took out too many loans to grow their businesses. In addition to them, bitcoin was also sold at Nothern Data, Argo, and CleanSpark.

Recall that in mid-June the co-founder of the mining firm Luxor Technologies Ethan Vera said that many lenders (Bable Finance, Galaxy Digital, bankrupt Celsius Network, BlockFi, Foundry Networks) are concerned that they have made too many loans to secure the mining devices themselves. He estimates that the firms have made a combined $4 billion in loans.

Luka Jankovic, head of credit at Galaxy Digital, noted at the time that at June bitcoin rates (at or below $20,000), many mining centers were operating at a loss.

We previously reported that BitGo declined to buy the cryptocurrency depository.