The recent sale of 29,730 shares by Brian Armstrong, the Chief Executive Officer of Coinbase Global Inc, is generating quite a buzz within the crypto community. This sale took place just a day before the SEC lawsuit was filed against Coinbase, which resulted in a 20% slump in share prices. Many are questioning whether this move could be classified as illegal insider trading.
However, further details have emerged, thanks to Fox Business Journalist Eleanor Terrett, who revealed that the sale had been pre-planned since August 2022. According to official filings from the SEC, these sales were intended to comply with Rule 10b5-1(c), which allows for pre-planned share sales on specific days of the month or quarter. This is by no means an uncommon practice on Wall Street and is considered legal.
Although these new revelations dispel the initial narrative that Armstrong’s COIN sales were based on his knowledge of the impending SEC lawsuit, the crypto community remains divided in their opinions. There are those who view his actions as disloyal, with one Twitter user, David Orr, stating that it is an easy process to cancel a 10b5 plan and that the optics are terrible given Armstrong’s PR campaign labeling himself and Coinbase as “saviors of crypto.”
On the other hand, some members of the community stand in support of the Coinbase CEO, pointing out that this type of selloff is not uncommon for Armstrong. An earlier report by Coingape shows a similar situation in May.
The future implications of this situation on Armstrong’s planned share sales remain to be seen. Will he change the scheduling to appease the community, or will he stand firm in his controversial decisions? For now, COIN shares have seen a marginal gain of 0.77%, currently sitting at $53.67.
In an ever-expanding crypto market where trust and loyalty can make or break a platform, it is crucial for industry leaders to carefully consider the impact of their actions on public opinion. This case highlights the need for transparency and communication to avoid misunderstandings and maintain the trust of the crypto community.