Tag: brian armstrong

What Can We Learn From Coinbase CEO Brian Armstrong's Coronavirus Outbreak Contingency Plan for Employees?

The coronavirus has dominated mainstream media coverage as countries outside of China has been seeing an increase of cases as the death toll reaches 2,700 worldwide.

Coronavirus cases in South Korea have reached 1,140, while the recent outbreak in Italy has caused more than 320 infections and 90 cases in Iran.  The World Health Organization officials and US experts believe it is still too early to declare the novel coronavirus, known as COVID-19 as a pandemic. 

US health officials from the Centers for Disease Control and Prevention stated that the coronavirus “is not recognized to be spreading in US communities.” Officials added that if the local transmissions are identified in the US, the US response strategy will “enhance implementation of actions to slow spread in communities.”

Hope for the best, prepare for the worst

US crypto trading firm Coinbase has been reportedly “planning for a really negative outcome” although the firm has kept an optimistic outlook. 

Brian Armstrong, CEO of Coinbase published a shared document stating, “Our expectation is that the measured mortality rate (once low-severity cases are included in the overall count) will fall significantly and that we’ll see limited transmission in the west, where there will be fewer high-density multi-generational housing situations.”

Coinbase has offices in the US, Japan, UK, and Ireland, and the firm is taking measures to ensure safety for three phases of the disease, from phase one, consisting of more than 100 cases of the coronavirus to phase three, more than 5000 infections. Currently, all of the firm’s offices are in tier 0, Japan is in tier 1. Tier 0 also includes improved sanitation measures in the office. 

Daily number of newly confirmed cases reported in Japan since January 10, 2020. Source: CHP Hong Kong

In cases where there are 100 or more infected people in the commuting radius of the Coinbase office, the firm will request some employees to work from home, while offering mask disposal bins and boost cleaning schedules for those in the office.

Phase two is when there are more than 1000 cases are within the commute range of the Coinbase office, with a mortality rate of 1% or above. If the situation leads to phase three, all employees will be required to work from home. 

“We continue to believe the risk of COVID-2019 coronavirus to most employees is low, with a slightly elevated risk to our team in Japan,” said Coinbase. The firm has made restrictions on travel to China, Hong Kong, Japan, Italy, and South Korea.

Hong Kong blockchain events cancelled

The Hong Kong Blockchain Week 2020, hosted by NexChange Group and supported by Cyberport, which was initially scheduled for March 2-6, has been postponed due to security and safety concerns regarding the outbreak of the coronavirus.  

Token2049, and StartmeupHK Festival 2020 have also been postponed to a later date, citing coronavirus developments creating uncertainty.

Hong Kong blockchain remittance startup Bitspark closure mildly due to coronavirus  

Bitspark, a blockchain remittance startup based in Hong Kong, recently announced its closure, stating reasons due to internal restructuring issues, as well as the coronavirus outbreak and protests that led to the current deterioration of Asia’s financial hub.   

Coinbase CEO: Americans are Investing Their COVID Stimulus Checks in Bitcoin

Brian Armstrong, the CEO of US-based crypto exchange Coinbase, has revealed data showing how $1,200 deposits similar to the stimulus checks being offered to Americans by the government have skyrocketed this week. Coinbase is the leading crypto exchange on American soil. 

Americans bullish on Bitcoin

The information presented suggests that some Americans are looking at the other side of the coin in their stimulus checks as they are not using them to purchase food and gas. Instead, they are keeping their fingers crossed and investing in Bitcoin. 

The stimulus cheques are part of US President Donald Trump’s plan to render a helping hand to U.S. citizens as the coronavirus pandemic continues causing economic turmoil across the globe. Reportedly, at least 22 million Americans have lost their jobs. 

The Internal Revenue Service (IRS), the revenue arm of the United States federal government, started disbursing the stimulus checks worth $1,200 to approximately 80 million people. Eligibility was pegged on annual gross income that did not exceed $75,000. 

Statistics from a CNBC survey showed that the majority of Americans were using the stimulus checks on food and gas at 16% and 10%, respectively. 

Bitcoin halving on the horizon 

With the much-anticipated Bitcoin halving event just around the corner, the data availed by Armstrong imply that some Americans want to add value to their stimulus checks by investing in Bitcoin. 

The Bitcoin halving scheduled for May will slash the mining reward from 12.5 BTC to 6.25 BTC. As a result, the supply of Bitcoin will reduce, and depending on demand; the price is anticipated to increase. The second halving event took place in July 2016, and a year later, in December 2017, Bitcoin’s price reached an all-time high of $20,000.

Recently, a surge in Bitcoin online courses was witnessed as the demand hit 300%, and this is linked to measures, such as lockdowns, social distancing, and quarantines, being necessitated to curb the coronavirus pandemic. 

Image via Shutterstock

Coinbase CEO Avoids Mainstream Media, Prefers YouTube, Podcasts and Blogs

Brian Armstrong the Coinbase CEO, has joined the list of cryptocurrency executives who prefer to leverage their own blogs and platforms to distribute information to the media, as opposed to direct contact with any journalists.

Coinbase CEO, Brian Armstrong noted in a tweet that company leaders seem increasingly unwilling to engage with the mainstream media and prefer to use social media platforms like Youtube, Twitter, and their own blogs.

Coinbase CEO Circumvents Mainstream Media

According to the tweet discussion, Armstrong does believe that there are credible journalists in the media and that mainstream mediums still fulfill ‘an important role in society’. However, he asserts that he believes the best strategy is to build a network of a handful of respected journalists and use modern social platforms the majority of the time.

Armstrong weighed the value of going on a national TV program to promote his site, which he claims may generate 100 or so visitors; versus specialist tech publications which tend to drive traffic into the thousands.

Armstrong Not Alone as Crypto CEOs Show Support

Armstrong’s post did instigate a small discussion on Twitter regarding how other cryptocurrency executives and CEOs try to navigate the world of journalism and media communications.

Kraken’s co-founder Jesse Powell was onboard with Armstrong suggesting that too many journalists are out for a sensational click-bait headline. Powell said, “It’s a high risk, low reward relative to publishing your own content or doing a live podcast/video, which can’t be distorted.”

In contrast Catherine Coley, the CEO of Binance.US responded to the tweet in support of the ‘amazing storyteller’ in the mainstream media. 

 I actually believe in the press and how important it is. Yes, we can speak directly to current users now, but for advancing the industry it’s more about telling stories through amazing storytellers. We will continue to support them, especially our fearless crypto reporters.

Image via TechCrunch

Coinbase CEO Armstrong and Tech Giant Apple Butt Heads over Crypto and dApps

Coinbase CEO Brian Armstrong has publicly voiced his disappointment over Apple’s seeming lack of flexibility over enabling decentralized application (dApp) browsers operating off its App store. 

Coinbase to Potentially Remove App from Apple

The American coin exchange CEO had previously announced to its users that Coinbase’s mobile wallet may potentially be removed from Apple’s App store. The Coinbase iOS compatible application enabled users to buy, sell and send cryptocurrencies, but due to Apple’s guidelines, the developers behind the Coinbase crypto wallet application were forced to revise the app’s features and amend it. Apple appeared to dislike the DApp browser feature that came with the crypto wallet application, and so Coinbase was forced to drop the functionality from its mobile wallet application that was offered on Apple’s App store.

CEO of Coinbase Armstrong publicly explained his stance and called out Apple’s reluctancy to embrace cryptocurrencies and dApps. He said: 

“Apple has been very restrictive and hostile to cryptocurrency over the years. They’re still blocking some functionality right now, including the ability to earn money with cryptocurrency by completing tasks, and unrestricted dApp browsers.” 

Coin exchange giant Coinbase had announced in December that it may potentially have to remove its dApp browser functionality, as Apple was not happy with it. and it did not respect the policy guidelines imposed by Apple. The news came after both Apple and Google had declared that they wanted to remove dApps entirely from their respective app store platforms. Google had carried out its wishes by taking down Ethereum-based decentralized application browser Metamask from Google Play Store. 

Apple Grilled on App Store from US Congress

Tech giant Apple had recently come under fire for how it handled the App store. In an antitrust hearing that occurred in June, Apple along with its counterparts, Facebook, Google, and Amazon were subject to an antitrust hearing with US Congress. Capitol Hill had been meaning to update its regulatory policies revolving around the tech industry and had been building a case on the “Big Four” tech firms for quite a while, as many rival companies have complained about the unjust leverage of power that the four tech giants used to overturn competition in the industry. 

For Apple, lawmakers grilled the company for the way it handled its App store and opposing firms that offered similar products. The Judiciary Committee also confronted Apple on its policy of taking a cut of 30% in commission for its in-app sales and subscriptions. This has greatly impacted Spotify, who appears to feel as if a large scale of its revenue is being surrendered to the American multinational tech company. 

Algorand for Scalable Blockchain, DeFi & DApps

With the continuing growth of decentralized applications, a scalable blockchain is highly sought after by developers. Algorand Foundation recently launched a comprehensive smart contract protocol that enabled decentralized finance (DeFi) developers to create DeFi solutions and Dapps on a highly scalable blockchain. The base layer, Algorand protocol, boasts of high security and appears to be the first pure Proof-of-Stake (PoS) blockchain protocol to be launched. 

The rise of DeFi had led to many more decentralized applications (DApps) being created and innovatively integrated into blockchain ecosystems for general trading, storage use, and much more. In Coinbase CEO Armstrong’s opinion, the future is inevitably moving towards crypto adoption on a global scale. Coinbase’s Armstrong is a strong cryptocurrency advocate and thinks that with digital assets set in place, “basic economic rights” can finally be accessed by people worldwide, even those in poorer countries. 

The debate between Coinbase and Apple continues, as Armstrong is very adamant that Apple is too restrictive over cryptocurrencies. To him, digital assets can only mean good things and are the step to take in order to revolutionize the economic landscape globally. 

Coinbase Refuses to Mix Politics With Business, Offers Unsatisfied Staff Severance Packages

Coinbase CEO Brian Armstrong has announced a generous severance package to staff who may find it difficult to focus on the company’s missions. The severance package offer was contained in a letter Armstrong sent to the Coinbase team members following his extensive statement highlighting the company’s missions on Sept. 27.

In his statement, Armstrong had advised his staffers about the company’s core values following a global pandemic and an upcoming US presidential election. According to him, the staff needs clarity in order to be guided on how the company responds to a broad range of societal issues including politics. While maintaining that the company’s focus revolves around working as a team and in building products as well as human capital development, there is minimal focus on the country’s politics.

“We don’t advocate for any particular causes or candidates internally that are unrelated to our mission, because it is a distraction from our mission. Even if we all agree something is a problem, we may not all agree on the solution.”

As he noted in his letter, some staffs are not pleased with this position and as such, anyone who decides to leave can do so. While staff who decide to leave after working for less than three will get a severance package of four months while those who have worked for more than three years will cost home with six months severance package.

With Coinbase targeting expansion with reports of Initial Public Offering (IPO) plans, Armstrong noted that the move is necessary as “the right approach for Coinbase that will set us up for success long term, and I would rather be honest and transparent about that than equivocate and work in a company that is not aligned.”

Coinbase is one of the top exchanges in the United States with a presence in key economies of the world including Asian giant Japan.

Twitter CEO Jack Dorsey Says Coinbase CEO's Apolitical Stance "Leaves People Behind"

Following the move by Coinbase CEO Brian Armstrong to offer severance packages to staff who disagrees with the ‘apolitical’ stance of the company, industry heavyweights including Twitter’s Chief Executive Officer Jack Dorsey has waded into the controversy.

Taking to his Twitter handle, Dorsey faulted Armstrong’s position, saying that Bitcoin and cryptocurrencies were are direct activism against the predatory financial system, which in itself is a major societal issue everyone should be interested in.

The Twitter CEO said:

“Bitcoin (aka “crypto”) is direct activism against an unverifiable and exclusionary financial system which negatively affects so much of our society. Important to at *least* acknowledge and connect the related societal issues your customers face daily. This leaves people behind.”

Recall that Blockchain.news reported that Armstrong intends to integrate the company’s mission as the ultimate focus of his staff, while categorically stating that wider societal issues will not be debated in the line of duty. In faulting this, Dorsey said opined that connecting with broader societal challenges can help make workplace missions clear.

Dorsey said:“There are real issues that real people who use these services every day experience. Why would we not acknowledge and connect with our mission? Not asking for solutions, but as we connect the issues the solutions become clearer.”

Furthermore, he pointed out that workers in one company are customers in another and as such, the company’s current position is ‘against relevancy’ for the largest audience.

While it is unclear how many more twists the Coinbase policy will stir, some observers have supported the move by Coinbase noting that businesses are expected to stay out of politics.

Despite differing positions, the Twitter CEO has recently made the rounds declaring that the future of his company lies in blockchain technology, a sentiment Armstrong and Dorsey apparently share

What Coinbase CEO’s Crypto Regulation Rumors Mean for Bitcoin if Pushed by US Treasury?

Brian Armstrong, the CEO of leading US crypto exchange Coinbase, warned that the Trump Administration may be targeting Bitcoin on its way out of office through crypto wallet regulation. Should the rumors be true, what could the regulation mean for Bitcoin and the BTC price?

Coinbase CEO Brian Armstrong dropped a bombshell on the Bitcoin community yesterday when he shared on Twitter that he had heard rumors of new self-hosted crypto wallet regulations due to be rushed through by the exiting Trump administration and the United States Treasury.

While the exact effect the Coinbase CEO’s announcement had on the crypto market is unclear, Armstrong’s Twitter post coincided with a drastic BTC price plunge from around $18,600 to $16,100 before the price recovered to consolidate around the $17,000 level.

Armstrong alleges that the impending crypto wallet regulation will require all digital asset exchanges to prove users own the address they want to withdraw to which he believes will have an extremely negative effect on the crypto space.

The Coinbase CEO goes on to explain that while the rumored process sounds like a reasonable idea on the surface, “it is a bad idea in practice” because it is often impractical to collect identifying information on a recipient in the crypto-economy.

Armstrong specifically highlighted how the regulation could broaden the growing divide between how Bitcoin is treated in the United States by regulators as opposed to Europe and Asia.

The Coinbase CEO wrote:

“Given these barriers, we’re likely to see fewer transactions from crypto financial institutions to self-hosted wallets. This would effectively create a walled garden for crypto financial services in the U.S., cutting us off from innovation happening in the rest of the world.”

Reportedly, Coinbase and along with several companies and prominent investors in the crypto space sent a joint letter to the US Treasury to share their concerns about this potential regulatory measure and ask for further clarification.

What does it mean for Bitcoin?

As stated above, the Bitcoin price underwent a huge correction which coincided almost immediately with the Coinbase CEO’s warning—the BTC price is $17,285 at the time of writing. But what long term effects could the crypto wallet requirements have on Bitcoin if they come into play?

Should Coinbase CEO Armstrong’s fears be realized, the Trump Administration’s parting crypto wallet regulation many expect it would have widespread impact for any crypto services that use a non-custodial wallet.

However, debate raged on Twitter as to the tangible effects on the crypto market in the long run, with some analysts arguing that further regulation is what macro buyers are asking for as Bitcoin becomes more widely accepted as a safe haven hedge in the mainstream markets.

Managing partner at Multicoin Capital, Kyle Samani says argued:

“For the current BTC bull market (next 12-36 months), it doesn’t matter. Why? Next wave of buyers—macro buyers want regulation. For them, 21M cap is a feature, and censorship resistance is (kind of) a bug They don’t want self custody. Just inflation hedge.”

Samani was joined by others in the space, who re-stated that Bitcoin is regarded as much more of an inflation hedge as opposed to a form of money that can bypass all government barriers.

In the world of crypto and Bitcoin, the investor base is made up of a large libertarian contingent and BTC is seen by many as a rebellion against a monolithic central bank financial system.

Prominent podcaster and Bitcoin Twitter personality Peter McCormack chimed into the arguments stating, “If you don’t need censorship resistance you don’t need decentralization,” he later explained, “If you don’t have censorship resistance then you don’t have seizure resistance, therefore your hedge isn’t guaranteed. You might as well have a promise in a spreadsheet.”

Coinbase Finally Files IPO with SEC—Is Brian Armstrong a Capitalist or Cypherpunk?

The long-anticipated Coinbase Initial Public Offering (IPO) has finally been filed and now awaits the review and approval of the Securities and Exchange Commission (SEC) before the filing will be made public.

In a short blog post on its official website, Coinbase announced today that it has officially filed its draft registration of its IPO with the SEC. Per the blog:

“Coinbase Global, Inc. today announced that it has confidentially submitted a draft registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”). The Form S-1 is expected to become effective after the SEC completes its review process, subject to market and other conditions.”

The news is huge for the crypto community, but it also causes further focus on the nature of Coinbase’s CEO Brian Armstrong and his role in the evolution of the crypto world. With recent headlines reporting enforced apolitical stances, excessive government cooperation, and an eye firmly on profits – is Armstrong really a cypherpunk or just another cold-hearted capitalist?

How Cypherpunk is this IPO?

Coinbase Inc’s upcoming stock market listing was first reported as a rumor by Reuters on July 8. At the time, the story became almost impossible to avoid on Twitter and crypto news sites, and speculation was rampant on what effects the $8 billion US exchange’s listing will have on the cryptocurrency industry as a whole.

Coinbase was set up by Brian Armstrong in 2011, and is now the largest crypto exchange in North America and perhaps the most recognizable name associated with Bitcoin and cryptocurrencies. The company’s stated goal is to create an open financial system and it mainly derives revenues from two sources: its operations as a crypto exchange catering to retail customers and institutional investors, and its custody business, which offers custodial services for cryptocurrencies to banks and institutions.

A cypherpunk is a person who uses encryption when accessing a computer network in order to ensure privacy, especially from government authorities. While an open-source financial system gels well with the original idea of the cypherpunk—cashing into Wall Street does not. The more exposure Armstrong appears to gain the more capitalist and uncaring he appears to be for the general plight of the crypto community.

As a name synonymous with Bitcoin and crypto in the US, Coinbase and Armstrong are fast being viewed as sell-outs of the crypto community which they ironically now represent. Members of the crypto sphere have also not been impressed with Armstrong and how perfectly cooperative with law enforcement and other officials in Washington D.C. Coinbase has become.

Armstrong the Legacy Capitalist

Armstrong’s own stake in the Coinbase exchange is worth a reported $1.3 billion, and should the IPO go ahead, it will make him insanely rich, more so.

At the end of September this year, Armstrong shared a blog post declaring that the major US exchange employees should take an apolitical stance at work. After being slammed by members of the crypto community, including Twitter’s Jack Dorsey—Coinbase employee’s who did not agree were offered attractive severance packages and an exodus of 60 employees ensued.

Bitcoin and crypto by their nature carry the theme of being anti-establishment, and is inherently political—to ban political ideologies and expression is counter to the Bitcoin crowd’s core and as Dorsey warned, “leaves people behind.” A clear point against the possibility of Armstrong being viewed as a cypherpunk but instead paints a picture of the Coinbase exchange CEO as a cold-hearted capitalist.

How will it Boost the Crypto-Sector?

Despite anyone’s opinion of Coinbase CEO Armstrong, why is this IPO a big deal?

Firstly, a stock market listing of Coinbase would bring a lot of mainstream investor attention to the cryptocurrency industry as a whole and focus mainstream financial analysts on the still overlooked and misunderstood sector.

A second major benefit is that the listing would allow the public to access the inner workings and to gain insight into one of the largest players in the crypto game.

The last main factor that may boost the crypto industry is that the listing will provide mainstream investors a safer and a more regulated inroad to the crypto sector. The boost to mainstream attention for cryptocurrencies and digital assets could trigger a wave of new investment, and spur further innovation for established financial markets and services.

Coinbase Will Not Bar Russian Users Unless New Laws Requires: CEO Brian Armstrong

Coinbase’s Chief Executive Officer, Brian Armstrong, has expressed his thoughts on the calls from the public that cryptocurrency exchanges should ban Russian users from utilizing their services.

As detailed in a Twitter thread which has become one of the primary ways Armstrong communicates, the CEO says the exchange will not ban Russian users, citing the fact that many citizens are not supportive of the decision of their president to go to war against Ukraine.

While this position remains the path the NASDAQ-listed trading company chooses to trail, Armstrong said the exchange’s position might change if American lawmakers or the Executive decides to issue a new set of rules that will help it sever ties from Russian users.

“In addition, we are not preemptively banning all Russians from using Coinbase. We believe everyone deserves access to basic financial services unless the law says otherwise,” Armstrong said in the tweet, adding that “Some ordinary Russians are using crypto as a lifeline now that their currency has collapsed. Many of them likely oppose what their country is doing, and a ban would hurt them, too. That said, if the US government decides to impose a ban, we will, of course, follow those laws.”

Since Russia began a full-scale invasion of Ukraine on February 24, several governments worldwide have been issuing several sanctions to isolate Russia economically. As the sanctions keep rolling in, companies like payment services giants Visa and Mastercard also announced to suspend their services for Russia to meet compliance with the sanctions.

Many crypto-linked startups such as FlexPool have also stopped their services to Russian users. However, mainstream trading platforms like Coinbase and a slew of others, including fintech firm Revolut are yet to follow suit. 

While Armstrong debunked the possibilities of Russian Oligarchs siphoning illegal funds through cryptocurrencies, the crisis with Ukraine is still shaping up, and exchanges might be forced to choose a side if Russia’s aggression continues in the long run.

19 Crypto Billionaires Rank among Forbes’ Annual World’s Billionaires List, Increased by 58% from Last Year

The number of crypto billionaires increased from twelve in 2020 to nineteen in 2021, according to the Forbes’ Annual World’s Billionaires list. 

In 2021, the 58.3% surge in crypto billionaires was fuelled by Web3 innovations, the exponential growth of non-fungible tokens (NFTs), and the attainment of all-time high (ATH) prices by various cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

The top-three spots are dominated by crypto exchange founders, with Changpeng Zhao “CZ” of Binance taking the helm based on a net worth of $65 billion. CZ is followed by Sam Bankman-Fried, the founder and CEO of FTX, and Brian Armstrong, the founder and CEO of Coinbase, with a net worth of $24 billion and $6.6 billion, respectively. 

Based on Forbes findings, CZ owns 70% of Binance as the 19th richest person globally. Binance dominance in the crypto space continues to be felt, given that it facilitated nearly two-thirds of all trading volume made by centralized exchanges. As a result, generating nearly $16 billion in revenue. 

The newcomers on the crypto billionaire list include Nikil Viswanathan and Joseph Lau, the co-founders of Web3 infrastructure company Alchemy, with a $2.4 billion net worth each. 

The others are Devin Finzer and Alex Atallah, the co-founders of the leading NFT marketplace OpenSea, with a $2.2 billion net worth apiece. 

Some notable names also on the list include Cameron and Tyler Winklevoss of Gemini, Michael Saylor of MicroStrategy, and venture capitalist Tim Draper. 

MicroStrategy, a leading business intelligence firm, has been leading the race in crypto institutional investment. At one time, Saylor opined that MicroStrategy was more inclined towards Bitcoin because it provided the best returns compared to other assets like precious metals, real estate, derivatives, stocks, and government debt.  

Crypto exchange Gemini recently released “The Global State of Crypto Report”. It noted that cryptocurrency reached a tipping point in 2021 because it evolved from a niche investment into a globally established asset class. 

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