Coinbase CEO Responds to Being Undervalued by Wall Street: A Classic "Innovator's Dilemma," Traditional Finance Shows Clear Divergence in Attitude Towards Crypto

Odaily News Coinbase CEO Brian Armstrong posted on platform X in response to "why Wall Street always misunderstands or undervalues Coinbase." He stated that traditional financial institutions currently show a clear divergence in their approach to the crypto industry. Some leading financial institutions are actively embracing crypto assets, with five Global Systemically Important Banks (GSIBs) already beginning to collaborate with Coinbase. Meanwhile, approximately half of large financial institutions are accelerating their deployment in the crypto business and recruiting related talent. As regulatory clarity gradually improves, traditional finance's acceptance of the crypto industry is steadily increasing. However, at the same time, some institutions remain on the sidelines or even resistant. The career paths of these institutions have long been built upon the traditional financial system, making them naturally skeptical of the structural disruption brought by crypto. Similar to the taxi industry facing Uber, the hotel industry facing Airbnb, and the aerospace industry facing SpaceX, cryptocurrency is directly disrupting Wall Street. Therefore, it's no surprise that some on Wall Street misunderstand cryptocurrency/Coinbase.

Furthermore, Brian Armstrong disclosed Coinbase's performance data, including a 156% year-over-year increase in total trading volume for 2025 with market share doubling, a 3x growth in platform custodial assets over three years, and currently having 12 products with annualized revenue exceeding $100 million. Investors should focus on the company's long-term execution capability and track record of business delivery, rather than relying solely on analyst model predictions. Additionally, since GAAP net profit includes unrealized gains and losses from the company's holdings of crypto assets, adjusted net profit better reflects the true operating condition.