• Coinbase announced that it will be deprecating its lending product, Coinbase Borrow, on the 10th of May.
• The decision to cease Coinbase’s Borrow program is not linked to any regulatory action.
• Current users of the Coinbase Borrow product do not need to take any action to prevent their positions from being closed.
Coinbase’s Ceasing of Operations
The largest US crypto exchange, Coinbase, has announced that it will be deprecating its lending product, Coinbase Borrow, on the 10th of May due to lack of interest. The decision is unrelated to any regulatory troubles and current users do not need to take any action for their positions to remain active until conclusion.
Coinbase Borrow Overview
Coinbase’s lending program allowed users to borrow up to a million dollars in exchange for BTC collateral. It was offered as part of the platform’s services and had been running since its launch in 2018.
Declining Interest Level
Despite initial success, the lending service no longer drew enough interest from customers for Coinbase to justify allocating funds towards it anymore – leading them in turn to cease operations next week. This could also be connected with a review of the company’s financial model whose stock value has gone down by nearly 30% over the past three weeks.
No Action Needed From Customers
Current users of the Coinbase Borrow product do not need to take any action in order for their loan contracts to remain active until completion; loans can still be taken out up until 10th May after which all new borrowing attempts will be rejected by the company.
Quarterly Earnings Report
Coinbase will report its quarterly earnings on 4th May during a turbulent time with regulators who have an increasingly negative outlook on cryptocurrency as a whole.