Nassim Nicholas Taleb, Lebanese-American mathematical statistician and author of “The Black Swan”, CEO Brian Armstrong cryptocurrency The exchange advised investors and customers to leave Coinbase after reports that it was selling Coinbase shares for more than $1.6 million.
Share Sale of CEO of Cryptocurrency Exchange Coinbase ‘Alarming’ According to Taleb
Recently, news emerged showing that Armstrong sold approximately 29,732 Class A shares of Coinbase valued at $1,625,102 on Nov.
The data was disclosed in a Coinbase filing with the US Securities and Exchange Commission (SEC). Armstrong also converted its Class B shares to Class A shares.
Demand, this move bitcoin The exchange believes it points to the danger surrounding Coinbase and warns people not to invest in the company.
Take what you can out of the sinking ship. In the real world, that is, pre-crypto, a CEO never sell his or her own shares while shouting “all is OK”. A CEO selling shares expresses such a loss of confidence in the company it is taken extremely seriously. pic.twitter.com/tzqnIwjd8q
— Nassim Nicholas Taleb (@nntaleb) November 17, 2022
In his tweet, Taleb said:
“Take what you can from the sinking ship. In the real world, namely the pre-crypto world, a CEO would never sell his own shares while shouting “everything is fine”. A CEO who sells his shares expresses that he has lost confidence in the company, and this is taken very seriously.”
strongly disagree. The psychological stress of having 99% of your net worth in one single illiquid asset can easily make people go insane. There is absolutely nothing wrong with some diversification, and the sanity boost from diversifying can even improve work performance.
— vitalik.eth (@VitalikButerin) November 17, 2022
Against this Ethereum co-founder Vitalik Buterin dismissed Taleb’s claims that there was trouble within Coinbase as the reason behind Armstrong’s sale. Buterin highlighted the “psychological stress” involved in having nearly all of one’s net worth in an illiquid asset:
“I strongly disagree. The psychological stress of having 99% of your net worth in a single illiquid asset can easily drive people crazy. There’s absolutely nothing wrong with a little diversification, and the mental health boost that diversification brings can even improve business performance.”
*Not investment advice.
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