Coinbase Expands Into Stocks, Prediction Markets Despite Customer Support Criticism

Markets 2026-01-02 19:34

Coinbase Expands Into Stocks, Prediction Markets Despite Customer Support Criticism

Coinbase CEO Brian Armstrong outlined three priorities for 2026 in a New Year's post.

The strategy centers on expanding the "everything exchange" platform, scaling stablecoins, and growing the Base layer-2 network.

Armstrong's vision follows December's launch of stock trading and prediction markets through a partnership with Kalshi.

Community responses have flagged persistent concerns about security and customer support alongside Base network development strategy.

What Happened

Coinbase's December 17 System Update event unveiled stock trading capabilities and prediction markets powered by Kalshi.

The platform now offers crypto, equities, prediction markets and commodities across spot, futures and options trading.

Armstrong emphasized stablecoins as core infrastructure rather than trading pairs.

Stablecoin revenue contributed 22% of total company revenue in Q2 2025.

Base network's creator coin strategy through Zora has drawn mounting criticism from developers.

Builders complained official Base social accounts ignore projects outside the favored narrative.

"If you're not part of the favored narrative, you effectively don't exist," wrote degen developer Jacek.

Read also: FOMC Minutes Show Fed Worried About Cash Shortage Risk In Banking System

Why It Matters

The expansion strategy faces headwinds from unresolved security issues.

Coinbase disclosed in May that cybercriminals had bribed overseas customer service agents to steal data from approximately 70,000 users.

The breach occurred December 26, 2024, but wasn't discovered until May 11, 2025.

Estimated remediation costs range from $180 million to $400 million.

An ex-employee was arrested in India on December 26, 2025.

Base processes more than 10 million daily transactions according to Basescan.

Critics warn deteriorating builder sentiment could push projects toward rival chains like Solana or Sui.

Armstrong responded to community criticism stating he had "a great chat" with members and received "lots of good ideas."

Read next: Congressman Davidson Warns Crypto Industry Abandoning Bitcoin's Original Vision

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This content is for informational purposes only and does not constitute investment advice.

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