Friday Oct 31 2025 02:50
2 min
In a surprising turn of events, Coinbase CEO Brian Armstrong injected himself directly into the world of crypto prediction markets during the company's third-quarter earnings call. In the final moments of the call, Armstrong rattled off a list of crypto buzzwords that were the subject of active betting on platforms like Kalshi and Polymarket.
This seemingly spontaneous act had immediate repercussions, triggering a "yes" resolution for all markets related to the mentioned keywords. While some bettors celebrated their last-second wins, others expressed concerns about the potential for manipulation and the integrity of prediction markets.
Armstrong later explained on X (formerly Twitter) that the incident occurred "spontaneously when someone on our team dropped a [prediction markets] link in the chat." However, this explanation did little to quell the debate surrounding the ethics of leveraging inside knowledge in such a manner.
The "What will Coinbase say during their next earnings call" markets saw significant betting activity, with $80,242 wagered on Kalshi and $3,912 on Polymarket. Fortunately, on Polymarket, no individual bettor lost more than $12.
While many bettors were amused by Armstrong's actions, the incident has sparked a broader conversation about the role of trust and transparency in prediction markets. These platforms rely on the assumption that insiders will not exploit their knowledge for personal gain, and Armstrong's actions have raised questions about whether that assumption is always valid.
It's worth noting that Coinbase reported strong financial results for the third quarter, with net income of $432.6 million and revenue of $1.9 billion, a 55% increase year-over-year. The company also increased its Bitcoin holdings by 2,772 BTC, bringing its total to 14,458 BTC and solidifying its position as one of the largest corporate Bitcoin holders.
Ultimately, the long-term impact of Armstrong's prediction market gambit remains to be seen. However, it has undoubtedly highlighted the need for greater scrutiny and clearer ethical guidelines in the rapidly evolving world of prediction markets.
Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.
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