Coinbase Suspends Algorand Staking Rewards
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Coinbase ends Algorand (ALGO)staking rewards to its users. However, the token will still be available for trade.
- What– Coinbase puts an end to Algorand staking rewards
- Why- The platform’s move is said to be in light of the recent regulatory scrutiny
- What Next- Coinbase will support customers who want to participate directly in governance, as all rewards from the Algorand governance period will end on March 31 and will be paid early next month.
On March 22, the San Francisco-based crypto exchange, Coinbase, emailed its customers that it would no longer offer Algorand (ALGO) rewards as of March 29. The Coinbase spokesperson asserted in an email to CoinDesk that “all rewards from the Algorand governance period, which will come to an end as of March 31, will be paid in early April.” However, the spokesperson did not give details for suspending the Algorand rewards.
Additionally, the spokesperson stipulated that:
Coinbase works alongside asset issuers to enable the provision of rewards and continuously reevaluates our offerings to ensure the best customer experience. We have decided to discontinue Algorand (ALGO) rewards now.
Previously, the users were able to earn rewards from Algorand through Coinbase. The exchange acted as the service provider linking the customers and the Algorand protocol by passing on rewards earned from staking. However, as per the website, the customers can still earn the staking rewards from Tezos, Ethereum, Solana, Cardano, and Ethereum networks.
“Coinbase’s move is in light of the recent regulatory scrutiny,” Algorand CEO.
However, the Algorand Foundation CEO, Staci Warden, has tweeted that Coinbase’s move was in light of the recent regulatory scrutiny.
Hi #algofam, woke up this a.m, like many of you, to find that @coinbase killed rewards. They've now informed us that they are evaluating their services in light of recent regulatory scrutiny, and, for that reason, they will no longer support Algo rewards for Retail customers. 1/
— staci.algo (@StaciW_DC) March 22, 2023
She noted that ” they’ve now informed us (Coinbase) that they are evaluating their services in light of recent regulatory scrutiny, and for that reason, the platform will no longer support Algo rewards for retail customers.” However, Warden has further stipulated that Coinbase will support customers who want to participate directly in governance as individual governors.
Noteworthy, the Algorand suspension move comes as Coinbase’s staking service faces questions from regulators. This comes after another crypto exchange, Kraken, had to settle with the Securities and Exchange Commission in February, this year. Kraken agreed to pay a $30 million fine and shut down its U.S. staking-as-a-service operation due to charges of selling unregistered securities. On the other hand, the SEC Chair, Gary Gensler, warned other crypto firms ”to take note,” giving a clue at possible investigations into other crypto exchanges in the United States.
However, the SEC has alleged that Coinbase may be violating securities laws and staking services. This comes after the SEC issued a ”Wells Notice” to the exchange company, informing the platform that it plans future action.
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