Coinbase CEO Brian Armstrong Says the Cryptocurrency Exchange Would Follow a Market-Driven Strategy for Meme Coins

Brian Armstrong, CEO of Coinbase Global Inc. COIN, said the cryptocurrency exchange would follow a market-driven strategy for meme coins

Coinbase Global Inc (NASDAQ:COIN) CEO Brian Armstrong said the cryptocurrency exchange will adopt a market-driven approach for meme coins, allowing users to trade even “low quality” tokens if they choose to do so.

Armstrong was responding to a flurry of meme coin launches on the sidelines of a recent X event.

“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,” said Armstrong.

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 also 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.

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The comments come amid an unprecedented surge in token creation, with January already marking a new monthly record of over 600,000 new tokens. The surge has been enabled 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 meme coin mania has raised concerns in the market, especially since many of these tokens have sketchy fundamentals. One such token, LIBRA, which was initially promoted by Argentine President Javier Milei, is now battling allegations of a rug-pull and insider manipulation.

Coinbase Stock Price: Coinbase shares were up 1.11% in after-hours trading after closing down 2.25% to $258.67 during Wednesday's regular session.