Crypto exchange Coinbase has stopped offering new loans through its lending service – a product that allows some US customers to offer crypto as collateral to get money.
In an email sent to Coinbase Borrow customers on May 3 and shared with recipients on Twitter, the exchange said – without giving a reason – that starting on May 10, customers will no longer be able to withdraw new loans and Coinbase Borrow.
He added that it will not affect the loan meaning that customers do not need to do anything else. The email to employees continues with the first quarterly announcement, which is expected on May 4.
Analysts at Citi downgraded Coinbase shares from “buy” to “neutral” ahead of the first quarter trading results. Analysts Mizuho also reportedly maintained its “underperform” rating on Coinbase, saying “fundamentals remain weak,” citing low daily trading volume.
Last week, in the midst of a clear explosion in the crypto industry in the United States, Coinbase decided to integrate its exchange worldwide, launching the trading system of Coinbase International Exchange (CIE) on May 2.
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