Coinbase CEO: Prediction Markets Need to Distinguish Between "Information Advantage" and Insider Trading Concepts; Misrepresented Statements Are Inaccurate

Odaily News: Coinbase CEO Brian Armstrong has clarified his remarks regarding prediction markets and "insider information," stating that the external simplification of his view as "insider trading is 100% necessary for prediction markets" is inaccurate and that the related quotes were taken out of context. He pointed out that the value of prediction markets lies in their ability to reflect participants' genuine judgments through real-money bets, thereby generating "signals" closer to the truth, but this does not equate to encouraging or endorsing insider trading in the traditional sense.

Armstrong further stated that the core logic of prediction markets differs from that of stock markets; their goal is not "fair trading" as in financial markets, but rather to aggregate information and reduce noise through incentive mechanisms to improve the accuracy of judgments about real-world events. He emphasized that this issue itself is highly complex and warrants discussion, hoping that external parties avoid distorting his views when referencing them.