Coinbase CEO Brian Armstrong Calls on Legitimate Companies to Join the Crypto Industry

Coinbase CEO Brian Armstrong has issued an open call for legitimate companies to join the crypto industry, saying this is the key to scaling crypto

Coinbase CEO Brian Armstrong has issued an urgent call for legitimate companies to join the crypto industry in a rapid integration, aiming to propel crypto into the backbone of the global financial system.

Armstrong made the remarks in a response to a post by The Why of FI (loganb.sui), who penned a lengthy analysis of Coinbase’s contributions to the industry’s survival and growth over the past four years.

While Logan praised Coinbase for its resilience in the face of adversity and credited the firm with making critical contributions to the industry’s survival, he expressed concern that increased competition might ultimately weaken Coinbase.

However, Armstrong intervened to highlight the bigger picture. Noting that he holds great respect for Logan’s thoughts and work, the Coinbase CEO pointed out an inaccuracy in his analysis.

“I appreciate the kind words, but I think you’re wrong on the market. I would much rather have every legitimate company now coming into crypto. This will 100x the TAM as crypto becomes the backbone of the entire global financial system, from capital markets, to payments, to debt,…” Armstrong wrote.

He added: “Coinbase will continue to lead as the primary financial account for anyone in crypto, with the most trusted and easiest-to-use products, and deep crypto expertise as it’s been our only focus since the beginning.”

Earlier, in a series of posts on X, previously Twitter, Logan B. highlighted how Coinbase stood out from other major crypto firms.

Unlike many competitors, who enmeshed themselves in risky strategies to capitalize quickly on the industry’s growth, Bain capital backed Coinbase. It also focused on sustainable growth and navigating the legal and political landscape.

At the time, major crypto firms were engaging in activities that ultimately led to their downfall or involvement in scandals. Nonetheless, they were on the verge of achieving staggering valuations.

For instance, FTX, valued at 25 billion in early 2022, was engaging in risky trading strategies with the aim of making a last-ditch effort to buy out a major stock exchange. Meanwhile, Ripple, in the midst of its SEC lawsuit, was planning to become a primary market in defi.

However, Coinbase, under Armstrong’s leadership, chose a different path. Despite the difficulties they faced, they persevered in lobbying efforts in Washington D.C. and engaged in a massive campaign to educate voters.

“They stood firm as the brunt of Gensler’s administrative agenda was an attempt to shut down the entire industry and eviscerate 75 years of administrative law in order to stamp out any company that his agency couldn’t be bothered to register over the course of the last decade.”

According to the investor, their efforts, together with those of others in the industry, are finally ushering in a more favorable regulatory environment, setting the stage for the next phase of growth.

But this will likely result in more competition for Coinbase itself, as the company is sure to face competition from those who entered the industry in pursuit of rapid gains and those who were granted the opportunity to participate due to Coinbase’s sacrifices.

“Regardless of your thoughts on CB, Base, content coins, UX, etc., thank your lucky stars it was Coinbase and Brian Armstrong, not FTX and SBF or the Ripple guys who were faced with this choice.”

Armstrong’s comments on broader participation in the crypto sphere coming at a time when several companies are venturing into the industry.

Recently, behemoths like Apple and Google have reportedly made significant moves in exploring the potential of launching their own Web3 products and services.

Apple is planning to introduce a hardware wallet by next year, aiming to integrate it seamlessly with Apple Pay and iCloud.

Moreover, Google is set to launch a blockchain phone in 2024, powered by Fuchsia OS and featuring a native crypto wallet, an NFT marketplace, and an open dApp store.