Coinbase CEO Brian Armstrong responds to criticism over gambling promotion in app

Coinbase CEO Brian Armstrong is under fire after Zooko, the founder of Zcash, criticises the crypto exchange for actively promoting sports betting and Bitcoin price wagers to young and financially vulnerable users. Armstrong now responds openly to that criticism and outlines his vision for the platform’s responsibility.

Bitcoin is available at OKX and Bybit.

Zooko speaks of shame over the industry

Zooko tells via X that he spoke with a young, financially inexperienced user of the Coinbase app. That user, according to him, is actively shown recommendations to bet on sports results and on the Bitcoin price. Zooko states that he deeply abhors this and is ashamed of the industry as a whole.

Armstrong’s response shows that he takes the criticism seriously, but also adds nuance. He says he is in favour of freedom: adults should be able to do what they want with their own money, as long as they do not harm others. He points out that investing in stocks is also seen as gambling by some, and that getting in early on Bitcoin or Zcash was also considered risky at the time. What is acceptable remains, according to him, very subjective.

Armstrong calls for balance and user control

Yet Armstrong acknowledges that it does not feel right to aggressively promote risky products to users without much financial knowledge. He makes a clear distinction: making something available in an app is different from placing it centrally in the user experience. That difference, in his view, is crucial.

As possible solutions, he mentions clear disclaimers, AI-based tools for financial education and personalised settings. Users could indicate themselves, when creating an account, which categories they do or do not want to see, so that the app matches their own wishes without imposing restrictions on others. On topics such as sports prediction markets, Armstrong furthermore believes that society must decide via democratic processes what is allowed. That is not a task for private companies, he states.