Coinbase CEO Brian Armstrong took to Twitter on Nov. 8 with a thread that began by sharing his “sympathy for everybody concerned within the present state of affairs with FTX.” Armstrong empathized that it may be “aggravating” when buyer property are in danger.
Nevertheless, the Coinbase CEO ensured the neighborhood understood the variations between Coinbase and FTX, stating that Coinbase has no “materials publicity” to both FTX or Alameda Analysis.
2/ Second, Coinbase would not have any materials publicity to FTX or FTT (and no publicity to Alameda).
— Brian Armstrong (@brian_armstrong) November 8, 2022
In a robust assertion, Armstrong claimed,
“This occasion seems to be the results of dangerous enterprise practices, together with conflicts of curiosity between deeply intertwined entities, and misuse of buyer funds (lending person property).”
FTX’s CEO Sam Bankman-Fried had beforehand claimed that buyer property weren’t in danger in a now-deleted Twitter thread. Nevertheless, following the announcement of a possible Binance acquisition, he confirmed that there was a “backlog” of buyer withdrawals that FTX wanted assist from Binance to clear.
Armstrong defined that Coinbase is registered and publicly listed within the U.S. “as a result of we imagine that transparency and belief are so necessary.” Moreover, as a publicly traded firm, Coinbase is required to publish monetary information in accordance with SEC rules, which FTX, a privately held firm, will not be.
6/ We’re integrated within the US, and publicly listed within the US as a result of we imagine that transparency and belief are so necessary. Each investor and buyer can see our public audited financials, which exhibits how we maintain buyer funds. We have by no means issued an alternate token.
— Brian Armstrong (@brian_armstrong) November 8, 2022
Armstrong additionally took the chance to push again in opposition to elevated regulation, one thing that SBF had advocated whereas stipulating areas by which the crypto trade might “compromise.”
Armstrong argued that Coinbase will proceed to “work with policymakers to create smart regulation for centralized exchanges.” But, he additionally stipulated that he didn’t imagine there had been a “degree taking part in area” thus far.
10/ We should always proceed to work with coverage makers to create smart regulation for centralized exchanges/custodians in every market (as we have been doing for a while), however then we have to see a degree taking part in area enforced, which hasn’t occurred so far.
— Brian Armstrong (@brian_armstrong) November 8, 2022
The Coinbase CEO additionally advocated for the expansion of non-custodial options.
“DeFi and self-custodial wallets that don’t depend on trusting third events. As a substitute, you may belief in code/math and every little thing could be publicly auditable on-chain.”
Armstrong ended his Twitter thread with a hyperlink to Coinbase’s transparency method stating that Coinbase is “essentially the most trusted crypto firm on the market.”
