Why Brian Armstrong is Selling Coinbase?
Brian Armstrong tweeted about selling two percent of its equity in its centralized exchange to fund his other two startups
However, selling off Coibase holdings does not mean that Brian is going to step down from its present role
Last year, Brian Armstrong, founder of Coinbase
promised the community that he would be selling two percent of its Coinbase shares to fuel its startups for scientific research.
Like any other smart businessman, Brian Armstrong does not keep all his eggs in the same baskets, especially if the basket is getting too heavy. Last year, the founder of Coinbase, the world’s second most popular cryptocurrency exchange, made a promise to its community.
Most likely this promise is going to be fulfilled in the coming time. Brian Armstrong tweeted about selling two percent of its equity in its centralized exchange to fund his other two startups namely NewLimit and ResearchHub. Last October, Brian tweeted that he is passionate about tackling the world's most pressing challenges and is willing to part with two percent of his Coinbase holdings to do so.
Brian co-founded NewLimit, a startup striving to extend the human lifespan through epigenetics, as well as ResearchHub, which incentivizes open academic research and discussion on science. By selling off his Coinbase stocks to fund these startups, Brian not only provides them with the necessary financial resources but also brings the necessary attention to ensure their success.
However, selling off Coibase holdings does not mean that Brian is going to step down from its present role in the crypto organization. Adding to the same tweet, Brian said that he intends to remain Coinbase CEO ‘for a very long time’.
As of now, Brian Armstrong has squared off 252,722 Coinbase shares for $13.8 million which is close to one-third of the predetermined target of two percent. The total number of shares to be sold was 792,000 with 539,275 shares yet to be sold to meet the target. The total sale is expected to bring approximately $50 million of funds for these two startups.
It is to be noted that the price of Coinbase stock has fallen by 82% since it was listed on NASDAQ and presently hovering close to $59 in the market. Brian’s total sale of his stocks averaged close to $54. This step from a leading CEO can incite more innovation in the space and new startups to take the required risk in solving important world problems.
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