Coinbase CEO Garners Reward, Pushback for Prediction Market Shoutouts in Earnings Name – Decrypt

Coinbase CEO Brian Armstrong helped some prediction market customers receives a commission throughout his agency’s Q3 earnings name on Thursday, rattling off a handful of phrases to the delight of customers who had wagered on him utilizing them. 

“I used to be just a little distracted as a result of I used to be monitoring the prediction market about what Coinbase will say on their subsequent earnings name,” he mentioned. “I simply need to add, right here the phrases ‘Bitcoin,’ ‘Ethereum,’ ‘blockchain,’ ‘staking,’ and ‘Web3’ to verify we get these in earlier than the top of the decision.” 

Armstrong was monitoring a mentions market, a market sort which asks customers what phrases can be mentioned throughout a particular occasion. Such markets have been out there on prediction markets Kalshi and Polymarket, asking customers to position their guess as to what Coinbase would say on its earnings name. 

Armstrong’s last-minute inclusions despatched odds for phrases like “Web3” and “Ethereum” virtually straight as much as 100%, in the end paying out predictors that anticipated a Coinbase consultant to utter them throughout the quarter-capping name.

The occasion was allegedly derived from a member sharing a hyperlink to one of many markets in a chat with the Coinbase government, he later posted on X. Dubbed as “enjoyable” by Armstrong, the stunt drew combined evaluations from trade observers.

Whereas some referred to as the transfer “superb” or referred to the Coinbase co-founder as a “chad,” others pointed to the act as failure of prediction markets—and alleged that it was a “blatant instance of insider buying and selling.”

“I’m bored with dumping on Clownbase, however you want your head examined when you suppose it’s cute or intelligent or savvy that the CEO of the most important firm on this trade brazenly manipulated a market,” posted Arca CIO Jeff Dorman on X. 

“Brian’s closing remarks have been made in a lighthearted, offhand approach, referencing on-line dialogue across the earnings name,” a Coinbase spokesperson advised Decrypt. “Coinbase has strong insurance policies and inner controls that prohibit staff, together with executives, from taking part in prediction markets or any associated exercise involving the corporate. Coinbase is dedicated to the best requirements of integrity, transparency, and compliance.”

Ethereum founder Vitalik Buterin got here to Armstrong’s protection in the same method on X, telling followers he thinks Armstrong thought he was having enjoyable, and the ETH icon “desires to be a part of a fun-loving society.” 

Armstrong’s last-second mentions didn’t contribute to any main monetary successes, as markets on Polymarket and Kalshi had low liquidity and whole volumes of $4,000 and $80,000, respectively. 

For instance, “Web3” and “staking,” each phrases that he scrambled in on the final second, managed below $450 in mixed quantity on Polymarket. 

“Lmfao, Brian you’re a legend, however subsequent time you gotta stability it out and do the ‘no bros’ a strong,” posted a Kalshi person after the stunt. 

Each Polymarket and Kalshi have benefited from the frenzy of exercise and hype surrounding prediction markets of late. The businesses have accomplished further raises within the final month, valuing their respective companies within the billions.

Coinbase beat its Q3 earnings estimate on elevated revenues. COIN shares completed the day buying and selling up practically 5% to $343.78.

Editor’s observe: This story was up to date after publication with a remark from Coinbase.