Brian Armstrong, CEO of Coinbase Global Inc. COIN, said the cryptocurrency exchange would follow a market-driven strategy for meme coins, allowing users to trade even “low quality” tokens if they desired.
What Happened: Armstrong took to X, emphasizing the importance of customer choice and transparency in response to a surge in meme coin launches.
“We believe in free market capitalism. If our customers want it, and it’s legal, we aim to let them make that choice for themselves,” Armstrong said.
The top executive of America’s largest cryptocurrency trading platform added that their role is to provide users with the best available information to make informed decisions, rather than to “play judge and jury” in recommending specific investments.
“If a token is a scam or fraudulent, we’d want to remove it. But if it’s just low quality, the customer should be able to see reviews or community notes, and make their own choice,” Armstrong said
Interestingly, he dubbed meme coins as the "canary in the coal mine," a precursor to a world where everything, be it posts, images, and videos, is tokenized.
See Also: Bitcoin ‘Early In Bull Market,’ Can Compete With Gold ETFs, Blockstream CEO Says
Why It Matters: Armstrong’s comments come amid an unprecedented surge in token creation, with January marking a new monthly record of over 600,000 new tokens. The surge has been driven by token launchpads like Pump.fun, which simplify the creation process.
Armstrong voiced the need for a reevaluation of the company’s token listing process during the company’s fourth-quarter 2024 earnings call, pushing for the integration of decentralized exchanges into Coinbase.
The surge in meme coins, many of which have sketchy fundamentals, has created concerns in the market. LIBRA token, initially promoted by Argentine President Javier Milei, is battling allegations of rug-pull and insider manipulation.
Price Action: Coinbase stock was up 1.11% in after-hours trading after closing down 2.25% to $258.67 during Wednesday's regular session.
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