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Was ALGO affected post termination of Coinbase staking rewards? Exploring…

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Was ALGO affected post termination of Coinbase staking rewards? Exploring...

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  • Coinbase has terminated Algorand’s staking rewards.
  • Despite the development, ALGO did not experience negative impacts.

The latest victim of the SEC’s continuous crackdown on multiple exchanges may be Algorand [ALGO]. According to a recent notification, ALGO stakes will no longer be eligible for incentives from Coinbase.


Is your portfolio green? Check out the Algorand Profit Calculator


The ripple effect of Coinbase’s notice

On 22 March, Staci Warden, CEO of the Algorand Foundation, announced that Coinbase had terminated ALGO staking rewards. Moreover, Coinbase would no longer promote ALGO incentives for retail users, since the company was reassessing its offerings in light of increased regulatory scrutiny.

U.S.-based cryptocurrency exchange and staking provider Coinbase revealed late Thursday that the SEC had accused it of violating securities laws by providing staking services. The regulator issued a “Wells Notice” to Coinbase, warning the company that it intended to take action soon.

With Algorand, Coinbase had fulfilled the service provider role by mediating between the protocol and its users and dispersing the staking rewards.

The state of Coinbase and Algorand stakes

The SEC has indicated that it would take action against Coinbase’s spot market, staking service, Coinbase Prime, and Coinbase Wallet in the Wells notice accompanying such action. Coinbase responded on 22 March, saying that it had prepared papers and given two witnesses for testimony, one on the basic features of its staking services and one on the basic operation of its trading platform.

Also, support will be offered to Algorand users who wish to take an active role in governance in the form of individual governors. In addition, they will keep providing ALGO trading to all customers and Governance Rewards to their institutional investors.

Algorand (ALGO) staking stats

According to data from staking rewards, 51.92% of ALGO was staked. The entire market cap was over $1.5 billion, while the staked ALGO’s market cap was above $836 million. According to CoinMarketCap, over seven billion coins were in circulation. Also, the volume has decreased by over 30% during the past 24 hours.


Realistic or not, here’s ALGO market cap in BTC’s terms


ALGO price movement

The price trend of ALGO on a daily timeframe revealed that it had fluctuated recently between gains and losses. It was trading at about $0.21, up almost 1% as of this writing. The most recent development did not affect its price movement.

Algorand (ALGO) price move

Source: TradingView

As with Algorand, staking services on exchanges may be shut down if there is increased regulatory oversight. U.S. investors might be barred from participating in staking and other services if the regulatory landscape does not improve.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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