The sale of shares by Coinbase CEO Brian Armstrong before the SEC lawsuit took place created controversy in the crypto community. Sources said he sold the stock just a day before the announcement of the lawsuit was announced. This action has raised doubts and questioned the honesty and transparency of exchange operators. This incident further increases tensions and conflicts between cryptocurrency exchanges and regulators, and may affect user and investor confidence in the industry.
Is Coinbase CEO’s Action Illegal?
A tweet from a user nicknamed WhaleWire stating that Coinbase CEO Brian Armstrong sold shares before the SEC lawsuit took place, creating frustration in the community. However, later journalist Eleanor Terrett clarified that these were pre-planned stock sales. This is evidenced by screenshots from Nasdaq showing that Armstrong has been selling COIN shares on a monthly basis since August 2022. Therefore, his sale of shares on June 5th could just be a coincidence. random. After the SEC lawsuit, COIN stock fell more than 20% before the market opened.
Cathie Wood caught the bottom
While Brian Armstrong sold COIN shares, Cathie Wood continued to “bottom-fish” these stocks.
Cathie Wood: No Comparison Between Coinbase and Binance
Before suing Coinbase, the SEC sued Binance on Monday. As a result, Cathy Wood, CEO of ARK Invest, feels that competition for Coinbase has decreased, which benefits COIN stock in the long term.
Cathy Wood argues that there is no direct comparison between Coinbase and Binance. Binance has had numerous regulatory compliance issues and has been involved in criminal activities, including scams. She shared this view in an interview on Bloomberg Television.
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