US-based crypto exchange, Coinbase, has found itself at the center of controversy after sponsoring a large-scale military parade in Washington, DC, marking the first such event in decades. The parade, held to celebrate the 250th anniversary of the United States, featured various corporate sponsors, including the exchange.
Debate Erupts Over Coinbase’s Role In Military Parade
The event, organized by America250—the official body responsible for commemorating the anniversary—also attracted sponsorships from well-known companies, including the software company Palantir, the aircraft developer Lockheed Martin, the retail company Walmart, Coca-Cola, and Chrysler.
However, according to Fortune, Coinbase’s participation has sparked a debate over the crypto industry’s alignment with a display of military might, despite its foundation in opposition to centralized power.
“Many” within the cryptocurrency community have expressed discomfort with Coinbase’s decision to sponsor the parade. Critics argue that this move runs counter to the fundamental ethos of the crypto movement, which champions independence from government influence.
One user on social media voiced their discontent at the exchange’s move, stating, “What Coinbase did by sponsoring this army parade feels like an insult to everything our industry stands for.”
COIN Shares Surge Despite Controversy
Adam Cochran, managing partner at Cinneamhain Ventures, announced his intention to sell his shares in Coinbase and withdraw his assets from the platform due to the sponsorship.
Cochran cited the company’s own policy, which states that it does not advocate for political causes unrelated to its mission, as a reason for his discontent, he stated:
Sponsoring a military parade, in a divided country, with already split views of crypto isn’t true to this policy. It’s just bad marketing that hurts this industry’s adoption.
Despite the backlash, some supporters defended Coinbase’s actions, arguing that the military is an apolitical institution and that sponsoring such an event does not imply political affiliation.
A user in defense of Coinbase commented, “$COIN supporting our military in no way implicates their political affiliation. The military should always be apolitical for the good of the nation.”
While it remains unclear how much Coinbase invested in the sponsorship or whether top executives, including CEO Brian Armstrong, attended the event, the market reaction has been notably positive. Coinbase shares experienced a 11% increase following the parade to close the day.
On Monday, COIN shares opened at $235. However, as crypto prices increased throughout the day, the exchange’s stock closed at $261. Still, COIN trades well below its yearly high of $310, which was reached during the first quarter’s bullish momentum in the broader crypto market.
Featured image from DALL-E, chart from TradingView.com
