During Coinbase’s third-quarter earnings call on Thursday, CEO Brian Armstrong made headlines, not for the company’s financial results, but for an offbeat admission that quickly stirred controversy across the crypto industry.
Armstrong confessed to being “a little bit distracted” during the call because he was tracking a prediction market that wagered on what words Coinbase executives might say next. Then, almost playfully, he added a string of words, “Bitcoin, Ethereum, Blockchain, Staking, and Web3,” to the discussion, seemingly out of nowhere.
Betting on Words: How It Happened
As Armstrong later hinted, those terms were part of active bets placed on “mention markets” hosted by platforms like Kalshi and Polymarket. Essentially, traders were betting real money on whether specific words would be spoken during the call. Bloomberg reported that more than $84,000 had been staked across these markets related to Coinbase’s call.
By casually uttering the predicted words, Armstrong may have helped some users win their bets. But he also showcased just how easily such markets could be manipulated, especially when company insiders become aware of them.
Industry Reactions: Amusement or Alarm?
While some found the moment humorous, others in the crypto investment community were not amused. Jeff Dorman, CIO at digital assets firm Arca, blasted the move on X (formerly Twitter), saying anyone who thought the stunt was clever “needs their head examined.”
Dorman expressed frustration that the act undermined years of effort spent convincing institutional investors that crypto is a legitimate, professional asset class. “It’s not fun working tirelessly for eight years to educate investors, only for one of the supposed leaders to mock the industry with this kind of behavior,” he wrote.
Meanwhile, Polymarket itself seemed to enjoy the chaos, calling Armstrong’s actions “diabolical work” in a playful post.
Coinbase’s Position and Future Plans
Interestingly, Coinbase has a growing connection to the prediction market ecosystem. The company has invested in both Kalshi and Polymarket and plans to support prediction markets through its upcoming “Everything Exchange” platform.
However, a Coinbase spokesperson told Bloomberg that the company strictly prohibits employees from participating in prediction markets or engaging in any related activities involving company information.
Following the uproar, Armstrong took to X once again, writing, “lol this was fun, happened spontaneously when someone on our team dropped a link in the chat.”
His casual tone only added to the debate about whether such “fun” moments could undermine trust in crypto leadership. While some shrugged it off as harmless banter, others saw it as a reminder of how thin the line can be between innovation and irresponsibility in the ever-evolving world of cryptocurrency.
