Crypto: Coinbase closes affiliate marketing program, bitcoin rises above $22,000

Yahoo Finance Live anchors discuss the closing of Coinbase’s affiliate marketing program as well as bitcoin rising above $22,000.

Video Transcript

- Let's also talk about shares of crypto trading platform Coinbase. Here on the day, we've been tracking them moving higher by about 10% there, and this is as there's been a small turnaround of the crypto market if you want to call it. That the company also recently announcing a closing of its affiliate program in the United States that started on Tuesday.

In an email to the creators, Coinbase pointed out that market volatility and the rest of the year's outlook, that contributed to the main reasons for its halting of the program. It certainly raises some red flags for the platform. We should note kind of on the former end of what's moving shares of Coinbase here on the day, it is this move to some of at least the most recent multi-week top end of the ranges that we've seen for crypto, specifically Bitcoin here.

But still, we're rangebound in this now kind of plus or minus $2,000, around 20,000 or 20k. And I think for a longer period of time, we could still kind of be in this obscurity just trying to figure out exactly where there could be in the broader landscape even more of the washout that's been taking place in this broader crypto winter. But then additionally, what type of other whales might actually look at this as a buying opportunity even in this kind of rangebound scenario right now?

- Yeah, I was playing around our site yesterday. Ethereum and Bitcoin have been two of the top tickers in our platform really since yesterday morning. And the trade appears to be this-- reduced expectations around 100 basis point rate hike, tech stocks, and then more broadly, of course, cryptocurrencies seem to be doing well. So as long as that thesis holds up, you could very well see just continued upward gains in crypto.

- Maybe.

- Yeah. Or maybe not.

- Or maybe not. Like, we don't know. Nobody does.

- Sam Bankman-Fried certainly hopes so--

- Sure.

- --making a huge play to try and save some of the other crypto competitors or at least the other crypto players within the marketplace right now.

- And one of the backdrops for this as we talk about Coinbase is it's no longer in the top 10 of digital asset exchanges by volume around the globe. That's according to new data from Mizuho. It was the fourth biggest in late 2021. Now it's number 14.

- Hm.

- So-- well, I mean, if the price goes up and people come back--

- Right.

- --maybe that'll change.

- And what types of profiles? Which people? Because with-- just to give a nod to the affiliate market program as well, these are-- whether it's FTX, whether it's Coinbase, whether it's BlockFi, even if you want to throw them into the conversation--

- Yeah.

-, they've all really relied on going after consumers or potential crypto owners through some of the influencer marketing strategies. And what have we talked about? During a time of a recessionary or pre-recessionary period, what's one of the first things to get cut?

It is the marketing spend. That's what we're seeing here, and it'll be interesting to see what types of other profiles, kind of age range or demographic-based, that they would have relied on social marketing for are actually coming back in and buying up crypto even at these prices.

- How about that [INAUDIBLE]?