Coinbase CEO: Predicting the market requires distinguishing between "information advantage" and the concept of insider trading; being quoted out of context is not accurate

Coinbase CEO Brian Armstrong clarified his remarks regarding prediction markets and "insider information," stating that it is inaccurate for outsiders to simplify his views to the assertion that "insider trading is 100% necessary for prediction markets," and that the related quotes have been taken out of context. He pointed out that the value of prediction markets lies in their ability to reflect participants' true judgments through real-money betting, thereby forming a "signal" that is closer to the truth, but this does not equate to encouraging or endorsing traditional insider trading practices.

Armstrong further stated that the core logic of prediction markets is different from that of stock markets; their goal is not "fair trading" in financial markets, but rather to aggregate information and reduce noise through incentive mechanisms to improve the accuracy of judgments about real-world events. He emphasized that this topic is inherently complex and open to discussion, and he hopes that outsiders will avoid distorted representations when quoting his views.