Coinbase Shuts Down Borrowing & Lending Division: What Does It Mean?
• Coinbase Borrow, the official lending protocol of Coinbase, has closed its doors permanently
• The closure is not related to the company’s ongoing legal problems
• Other lending protocols such as Celsius and Voyager Digital have also been forced to close their doors due to financial difficulties
Coinbase Closes Its Borrowing and Lending Division
Coinbase – one of America’s largest and most popular digital currency trading platforms – has shut down its borrowing and lending division. Effective May 10, the exchange will no longer be issuing new loans through Coinbase Borrow. Those who received loans prior to this date will not be affected.
Why Was Coinbase Borrow Shut Down?
The exact reason for the closure remains unknown; however, many analysts speculate that it may have something to do with the instability in the crypto market over the past year. Other lending protocols such as Celsius and Voyager Digital have been forced to close their doors due to financial difficulties, halting all withdrawals in order to protect themselves against creditors seeking repayment.
Current Legal Issues Facing Coinbase
At present, Coinbase is facing several legal issues from institutions like the Securities and Exchange Commission (SEC). Despite these issues, however, there is no indication that they are related to the closing of Coinbase borrow.
The Crypto Industry Is Still Recovering From Last Year’s Events
Cryptocurrencies such as Bitcoin have seen some degree of recovery since early 2023; yet there is still much work left undone before a sense of stability can return. Many crypto and blockchain institutions are still struggling from events in 2022 which resulted in significant losses across multiple platforms.
Sign Up For Coinbase To Receive a Bonus
Those interested in exploring digital currencies can sign up for an account on Coinbase and receive a $12 bonus upon joining. There is also a referral bonus up to $3,000 available when users refer other people or businesses into opening an account with them.