In a recent development that has stirred the crypto community, Jeff Dorman, the chief investment officer at digital asset firm Arca, has criticized Coinbase CEO Brian Armstrong for his actions during the company’s third-quarter earnings call. Armstrong’s mention of prediction market bets during the call has raised questions about market integrity, according to CryptoNews.
During the earnings call, Armstrong referenced terms such as “Bitcoin,” “Ethereum,” “Blockchain,” “Staking,” and “Web3.” These were keywords that users on prediction platforms like Polymarket and Kalshi predicted would be mentioned. This move allowed some bettors to win, with more than $84,000 reportedly staked on the occurrence of these terms, as reported by Bloomberg.
Dorman expressed his disapproval on X, stating that Armstrong’s remarks undermined efforts to build institutional trust in the crypto industry. He argued that such behavior could damage the credibility of firms working to establish cryptocurrency as a serious asset class.
Polymarket humorously referred to Armstrong’s actions as “diabolical work,” highlighting the ease with which “mention markets” can be influenced by public figures. Despite the jest, the incident has serious implications for market regulation. Coinbase has since clarified that its employees are prohibited from participating in prediction markets involving the company.
Coinbase has also invested in platforms like Polymarket and Kalshi, and Armstrong used the call to promote the firm’s new “Everything Exchange,” which may include support for prediction markets. Responding to the backlash, Armstrong described the incident as a spontaneous decision made during the call.
Separately, Coinbase has refuted allegations from Senator Chris Murphy, who accused the exchange of being part of President Donald Trump’s “corruption factory.” Murphy’s claims were based on Coinbase’s donations to Trump’s inauguration and involvement in a new White House ballroom project.
Coinbase’s Chief Policy Officer, Faryar Shirzad, dismissed these claims as “ridiculous,” highlighting that Fairshake, a crypto-backed super PAC associated with Coinbase, is non-partisan and supports both Republicans and Democrats. Shirzad emphasized that corporate donations for presidential inaugurations are common practice and fully disclosed under campaign finance laws.
The White House confirmed that the ballroom’s $300 million cost is funded privately, with contributions from companies like Apple, Google, and Ripple.
