Coinbase CEO Brian Armstrong, during his participation in The Pomp Podcast hosted by Anthony Pompliano, touched on Binance Smart Chain (BSC), an advanced blockchain for running smart contracts. Binance’s blockchain said he found BSC centralized and dangerous. According to Armstrong, regulators can further strengthen Coinbase…
BSC is a highly centralized blockchain according to Brian Armstrong
The CEO of Coinbase roughly touched upon the use cases of decentralization and governance tokens. Their first statement was:
In this case, 50% or more of the governance tokens appear to be controlled by a single company – Binance. And even in the name.
Armstrong went on to say that such centralized blockchains are “pretty dangerous”:
I think it would be a bad thing if the majority of these events started building more centralized blockchains. I actually think it’s pretty dangerous. So, hopefully we will build decentralized but also scalable Blockchain projects.
Brian Armstrong, a Bitcoin whale
Armstrong revealed that he holds “a ton” of the oldest cryptocurrency, despite being criticized for being too altcoin-centric from the Bitcoin community. He added that it would take forever to compare the king of crypto to gold. However, Armstrong took a stance against the crypto-tribalism of social media:
I’m always a little disappointed when I see all the tribalism going on the internet. Twitter was created for some kind of conflict and war, and I don’t really think it represents what the majority of the industry feels.
Meanwhile, Armstrong said that Coinbase is independent of blockchain and is trying to add support to as many projects as possible as long as they are legal in a particular jurisdiction.
Coinbase could benefit from regulation
Armstrong noted that global regulations would actually be beneficial for Coinbase, but hurting smaller startups:
Honestly, regulation would have been the best thing that could have happened to Coinbase because we are the largest company… We have a huge balance sheet, our staff is tons of lawyers… It is the smaller crypto startups that it will harm. This company will solidify the series.
Cryptocoin. com, the Lymph product of the Coinbase exchange was shelved after being sued by the SEC. Armstrong predicts there will be more enforcement action until legal precedent is established. According to the Coinbase president, the founders and lawyersyellow are trying to “peck” what the decades-old Howey test has meant for their project.