February 24, 2022

Photo: Michael Short/Bloomberg via Getty Images
Good morning, and welcome to Protocol Fintech. This Thursday: Coinbase’s Armstrong factor, the EU’s plan for crypto oversight, and Paradigm’s very junior hire.
As I write this, reports are coming in that Russia is proceeding with an invasion of Ukraine. Markets are already rattled, and promised sanctions could shake them further. Times like these test startups: The brittler companies will soon shatter, while those built to last will shine. We’ll soon know which is which.
— Owen Thomas (email | twitter)
Crypto is in a slump. Coinbase’s earnings, due out today, will show how the leading firm is managing through the industry’s latest cycle — and also give shareholders a chance to hear from a leader whose tweeting fingers keep getting him in trouble.
Coinbase has told investors it’s “not a quarter-to-quarter investment,” but Wall Street has a way of making up its own mind about stocks, and lately it’s soured on growth stocks showing any kind of weakness. That makes the questions that CEO Brian Armstrong will likely answer during the call — Is Coinbase attracting more users? Did the Super Bowl ad pay off? Are regulators weighing the company down? — all the more crucial.
Expect lots of chest-thumping about the Crypto Bowl ad. Coinbase’s quirky Super Bowl spot — just a QR code dancing across the screen — generated the most chatter.
Regulators and rivals are ready to spoil the party. Coinbase’s latest strategy seems to be to play nice with the government.
Coinbase has another risk factor: Brian Armstrong’s Twitter account. He just can’t seem to help himself.
All of that makes Armstrong’s performance during today’s earnings call all the more crucial. Wall Street is itchy, and it’s already savaged one-time crypto darling Robinhood. There’s no room for gaffes.
How do you maximize Sales and Marketing performance? Point them at the same targets. Watch the latest episode of Club Revenue on Nasdaq as Bhaskar Roy, Chief Marketing Officer at Workato, reveals his remarkable tactics so that Marketing and Sales can outperform.
On Protocol: Crypto’s biggest lobbyists are spending at least $100,000 a month to promote crypto-friendly regulation in New York. With over 20 crypto-related bills introduced in Albany this year, the state could shape the broader regulatory landscape.
The International Monetary Fund issued a caution to Nigeria and encouraged it to assess the risks of its CBDC. Nigeria introduced its eNaira last year. The IMF says using it for cross-border payments is risky, citing terrorism financing and money laundering concerns.
The European Union is planning crypto oversight. The EU is seeking to set up a new anti-money laundering authority, and a group of states led by Germany wants to make the inclusion of crypto firms more explicit, with expected operations starting in 2024.
A gunman demanded $230 million in crypto after holding a man hostage at an Amsterdam Apple store. The suspect allegedly threatened to blow himself up if his demands weren’t met, with explosives strapped to his body. He did not specify which crypto token he wanted before he was apprehended.
The Bank of Spain’s governor wants more crypto oversight. Pablo Hernández de Cos articulated a series of risks that the crypto industry poses to financial markets, including social risks and risks to the banking sector.
Mexican Sen. Indira Kempis thinks that bitcoin should be legal tender, with Mexico following in El Salvador’s footsteps. “Making bitcoin a legal tender means putting a level playing field for people who are excluded in almost all countries,” she said in an interview.
“Tinder Swindler” Simon Leviev has denied allegations of defrauding women out of nearly $500,000 on the dating app, saying instead that his lavish lifestyle is funded by bitcoin investments. “I’m not a fraud and I’m not a fake. People don't know me so they cannot judge me. I'm the biggest gentleman in the world,” he said in an interview.
While the U.S. Federal Reserve continues to collect feedback on the development of a digital dollar, policymakers are making their opinions known, hinting at a rising interest in a U.S. CBDC. "With technology driving profound change, it is important we prepare for the financial system of the future and not limit our thinking to the financial system of today,” Federal Reserve Gov. Lael Brainard said in a speech.
FTX hired Lauren Remington Platt as its head of Global Luxury Partnerships. With a background in fashion, Remington Platt will seek partnerships with luxury brands that haven’t yet jumped into the cryptocurrency world, the company said.
Protego Trust named Brian Brooks and Michael Carpenter to its board. The move is poised to deepen the board’s expertise in digital assets, regulatory compliance and bank operations as the digital asset firm transitions into a federally chartered national bank.
Circle named Nikhil Chandhok as its chief product officer. Chandhok formerly led Meta’s product development for AR glasses, and will lead Circle’s global product and growth.
Celsius appointed Rod Bolger to replace Yaron Shalem as chief financial officer. Shalem was arrested in November last year in connection to fraud-related investigations and was immediately suspended. Bolger previously held positions at Bank of America and Citigroup.
Paradigm hired the pseudonymous Transmissions11 as a research developer. Transmissions11 will work with companies to “ship secure, fast, and elegant code” while attending high school in California.
Clearco co-founder Michele Romanow took over as CEO, with co-founder Andrew D’Souza stepping down. D’Souza will assume the role of executive chairman. He remains the largest shareholder of the lending company.
Christine Moy, a senior blockchain executive at JPMorgan, is leaving the firm. Moy was the global head of blockchain product Liink, and is reportedly pursuing a new opportunity.
How do you maximize Sales and Marketing performance? Point them at the same targets. Watch the latest episode of Club Revenue on Nasdaq as Bhaskar Roy, Chief Marketing Officer at Workato, reveals his remarkable tactics so that Marketing and Sales can outperform.
Thanks for reading — see you tomorrow!
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