Coinbase CEO Brian Armstrong disrupts $84K prediction markets with earnings call comments

Coinbase CEO Brian Armstrong stirred controversy by deliberately mentioning specific keywords—"Bitcoin," "Ethereum," "blockchain," "staking," and "Web3"—during the company's Q3 2025 earnings call to influence prediction market bets placed on those words being said. This stunt, involving over $84,000 worth of contracts on platforms like Kalshi and Polymarket, highlighted vulnerabilities and potential manipulation risks in the growing, largely unregulated prediction market space. While Armstrong described the act as spontaneous and fun, some bettors reported significant financial losses, with one user claiming a $10,000 loss and another threatening legal action after missing out on a $26,000 payout. The incident draws a stark contrast to the severe repercussions faced in other gambling-related scandals, such as those involving NBA players and coaches accused of manipulating betting outcomes. It also underlines ongoing concerns about regulation and fairness in emerging gambling markets, where insider actions can heavily influence betting results. Despite the backlash, the event passed with minimal official response, reflecting the current laissez-faire attitude toward cryptocurrency gambling regulation in the U.S.