Last week the crypto market took a big step with Coinbase. And, the main cryptocurrency exchange in the United States also became the first company in the crypto world to start trading on the New York Stock Exchange. However, soon the news that the exchange’s CEO, Brian Armstrong, sold part of his shares clouded the news. Therefore, today we talk about why Brian Armstrong sold his shares in Coinbase, through the Tweet Scott Melker’s day:
Did Brian Armstrong betray Coinbase?
Coinbase’s going public will go down in cryptocurrency history as one of its most important moments. And it is that, it symbolizes the expected union between the crypto market and the traditional financial market. With which, the adoption of virtual currencies is expected to skyrocket, and with it its price.
However, the joy was short-lived, as it was announced yesterday that Coinbase CEO Brian Armstrong had sold $ 291 million of his shares during the first hours. A move that was emulated by several of the exchange’s executives, and that led many to wonder if it was all a gimmick to profit and retire.
A theory that, although it generated a stir on the Internet, has been refuted by crypto analyst Scott Melker. Who explained that the reason behind the Armstrong sale lies in the way Coinbase went public. Without issuing new shares, but only with the purchase and sale of existing ones, which forces, according to Melker, the holders of shares to sell part of them.
«Coinbase is not selling shares. They have to sell them so that there are shares available to buy, according to the rules of a direct listing. And even if they did. Who cares? Isn’t this a free market? After working for a decade, would you really blame someone for making a little profit?».
Although Brian Armstrong has not yet commented on it, Scott Melker’s explanation makes sense based on the way Coinbase went public. And it would be a sample of how fake news can affect the crypto world.