Coinbase Borrow will stop operating next week: report
Coinbase Borrow will stop operating next week: report
The largest US crypto tour announced that she will expire her loan product Coinbase Borrow on May 10th.
According to a spokesman for the company, the product no longer met with sufficient interest in justifying the provision of funds. Loans that were recorded through the program remain active until they graduated.
decision not associated with regulatory problems
The decision to set the Coinbase borrow program, according to the company, is not associated with pending or implemented regulatory measures. However, it could be related to a review of the financial model of Coinbase, the stock value of which has shrunk by almost 30 % in the past 3 weeks.
The crypto platform will announce its quarterly profits on May 4th, in the middle of a back and forth with supervisory authorities such as the SEC, which seem to have an ever worse view of the crypto industry as a whole.
No action from customers required
Current users of the Coinbase Borrow product are not endangered according to Bloomberg and do not have to take measures to prevent their positions from being closed.
loans can be taken by May 10th, after which all new borrowing attempts against BTC security are rejected by the company. Later all loan contracts are carried out until the term, after which the product is completely closed for an indefinite period.
According to the spokesman, the decision to end the program was motivated by a re -assessment of prioritization of the products offered by Coinbase. Similar to the case of Coinbase Pro - the last summer was closed, with most of its products being integrated into the main platform - the team considered the existence of Coinbase Borrow to be superfluous.
"We regularly rate our products to ensure that we prioritize the offers that are most important to our customers. With effect from May 10th, we will post the award of new loans via Coinbase Borrow."
The service had a relatively short support time. It was introduced in November 2021 to support users who quickly needed cash without having to deal with the tax problems that could arise from the direct sale of Bitcoin. However, the crypto winter started shortly after the launch. When the cryptoma markets cooled down, fewer and fewer users began to use the product, which led to the decision to end support.
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