As it continues to draw down on spending, Coinbase is “temporarily shutting down” its U.S. affiliate marketing program, according to Business Insider.
Influencers part of the program aimed at acquiring new users through social media were notified via email that their commissions would be going away starting tomorrow, according to emails reviewed by Business Insider.
Coinbase’s decision comes at a time when many Web3 companies are looking for ways to cut costs amid a slump in cryptocurrency prices.
“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 email sent to influencers reportedly said.
Coinbase did not respond to immediate requests for comment.
Coinbase is one of the top three crypto exchanges, according to data from CoinMarketCap, with over $2 billion in daily trading volume. Founded in 2012, the company has grown over a decade into an industry leader and become somewhat of a household name among crypto companies.
The company cited the onset of crypto winter as a leading factor in putting its affiliate program on pause, as well as deteriorating economic conditions that have cropped up so far this year.
“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,” the email read.
The exchange reportedly told influencers it plans on relaunching the program sometime in 2023, but did not provide specific details as to when. The email stated, “We have established many valued partnerships through our affiliation platform that we hope to renew in the future.”
Coinbase and the crypto bear market
Paring down its operating costs has been a theme for Coinbase this year.
It was forced to lay off 18% of its employees last month, canning 1,100 employees and rescinding job offers with prospective employees the company had already reached agreements with.
Still, earlier this month, the San Francisco-based company announced it would expand further into Europe and establish offices in countries including France, Italy, Spain, and the Netherlands, while strengthening its presence in the UK, Ireland, and Germany, according to a press release from Coinbase.
The company was the first ever crypto exchange to go public on the U.S. stock exchange, making its debut back in April of last year.
According to Yahoo Finance, shares of Coinbase Global, Inc. are trading down 82% since they launched, from $342 per share to around $61, as of publication.