On March 29, the cryptocurrency exchange Coinbase informed its users that it will stop providing Algorand token (ALGO) incentives. The token will continue to be exchangeable.
In an email from CoinDesk, a representative stated that "all rewards from the Algorand governance period ending March 31st will be paid in early April," but did not provide a rationale for the suspension of Algorand payouts.
A Coinbase spokesperson said:
“Coinbase works alongside asset issuers to provide rewards and continuously reevaluate our offerings to ensure the best customer experience. We have decided to discontinue Algorand rewards at this time.”
As a service provider for Algorand, Coinbase connected the user with the protocol and distributed staking incentives. Users may still receive staking rewards from the Ethereum, Cosmos, Tezos, Cardano, and Solana blockchains, according to the exchange's website.
Algorand's move comes in the wake of cryptocurrency exchange Kraken agreeing in February to pay $30 million in fines and shut down its U.S. staking-as-a-service operation to resolve SEC charges that it was marketing unregistered securities. This decision has raised concerns about Coinbase's staking service. Gary Gensler, chairman of the SEC, issued a "take note" warning to other platforms and hinted at potential follow-up inquiries into further American-based cryptocurrency exchanges.