Brian Armstrong defends the crypto sector
Brian ArmstrongCEO of Coinbase, says he feels encouraged defend the crypto sector since the company is part of the Fortune 500, thanks in part to its IPO.
Coinbase: the benefits of the company’s IPO according to Armstrong
In accordance reports, Brian ArmstrongCEO of Coinbase, commented his company on stage at the Messari Mainnet Conference in New York last week, saying that he felt compelled to “defend the crypto sector.”
Here’s what Armstrong reportedly said about it:
“[Going public] has put us on the main stage, where we are able to get deals done with BlackRock and companies like Meta. Now we’re the first Fortune 500 company to do crypto, and so we can go to deals with other Fortune 500 companies now, and they treat us more like a more legitimate force out there.”
Basically, Armstrong sees Coinbase’s listing on the exchange as beneficial in terms of exposure and publicitydifferent from the actual performance of the shares.
And indeed, as he points out Coinbase is the first Fortune 500 crypto company who will then be able to enter into negotiations and agreements with other Fortune 500 companies, says Armstrong not highlighting COIN’s 84% collapse from their record high of $381 reached on listing day in April 2021.
Coinbase and the partnership with BlackRock
In August 2022, Coin base had signed a collaboration with BlackRock Inc allowing institutional clients to invest in crypto with the quality of services.
Basically, the credit institution’s institutional customers can trade Bitcoin in your wallet through Aladdin online banking.
The news of the partnership with BlackRock had led Coinbase’s (COIN) stock will rise 26% on the exchangeto $92. Nothing like current price of COIN, which hovers around $62.
The downsides of being the first crypto company listed on the stock exchange
And period Coinbase’s listing on the stock exchange benefits from exposure to institutional and advanced partners, that too worsening the company’s exposure from regulatory institutions who still don’t know how to manage and regulate crypto.
And indeed, Coin base has been loaded by the US Securities and Exchange Commission (SEC) to list digital assets that should have been registered as “collateral”.
Not only that, last summerr SEC allegedly archived formal charges against a former executive and two other Coinbase employees for “insider trading”.
