Coinbase CEO: Market predictions need to distinguish between the concepts of "information advantage" and insider trading; the misinterpretation is inaccurate.

Coinbase CEO Brian Armstrong clarified his comments regarding prediction markets and "insider information," stating that the notion that "insider trading is 100% necessary for prediction markets" is inaccurate, and that related quotations are 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, thus creating "signals" closer to the truth. However, this does not equate to encouraging or endorsing traditional insider trading. Armstrong further stated that prediction markets differ from the core logic of the stock market; 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 issue is highly complex and open to discussion, and hoped that outsiders would avoid distorting his views when quoting them.