Coinbase CEO Brian Armstrong warns memecoin traders about legal risks, insider trading, and scams—saying chasing quick cash could land you in jail.
Brian Armstrong, CEO of Coinbase, just dropped a major reality check on the memecoin craze. He’s all for free markets, but he’s making it clear—there’s a fine line between hype and straight-up illegal moves, especially when it comes to insider trading.
Recently, memecoins linked to Donald Trump and Argentina’s President Javier Milei crashed hard, sparking controversy. Armstrong took to X (formerly Twitter) to say that while Coinbase lists what users want, people need to be smart. Just because Dogecoin blew up doesn’t mean every memecoin is a safe bet—some are straight-up scams.
He believes memecoins are just the beginning, predicting that everything—art, votes, contracts—will eventually be tokenized on-chain. But that doesn’t mean investors should blindly dive in. Coinbase, he says, will keep warning users about sketchy tokens.
His biggest warning? Insider trading in memecoins is illegal, and people caught trying to game the system will end up behind bars. Every crypto cycle, there’s a wave of people trying to get rich quick, but Armstrong’s advice is clear: Build something valuable, or risk learning the hard way.
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