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Dear Airbnb: Congratulations and Some Lessons Learned

By L.J Brock, Chief People Officer

Overnight I saw the note from Brian Chesky announcing to Airbnb employees that they would be moving to a permanent remote-working model. I applaud Brian and his team. While it may sound simple in a post-pandemic era, the logistics can be anything but. I am ecstatic to see them join the growing ranks of remote-first companies because more people, more ideas, and more experiments will make remote work better for everyone. Redesigning the nature of work, is work that should not be done in isolation (no pun intended).

When we went remote-first in May 2020 we were not shy to admit that we did not have all the answers, and while we still don’t, there have been some important learnings along the way. As Airbnb starts off on their journey and in our crypto-mindset of being transparent and open source, here are some of our key learnings from operating a remote-first company over the last two years…

Flex on location, consistent on experience

One of the most obvious benefits that drew us to remote-first was the ability to give our people the flexibility to choose where they live and work, while also giving Coinbase access to a much broader talent market. What followed was that we needed to put the practices in place to protect those employee choices and ensure that you are neither privileged or punished for your choice. It’s one thing to say ‘you can choose to work from the office if you prefer’ and another to say ‘you will receive the same opportunities and experience regardless of where you chose to work’.

Some of the practices we’ve introduced include, ‘one person, one device’ meaning regardless of your location, all attendees should join from their own device — creating an equal experience for all. We also have deliberately tried to remove one standard time zone for all employees. Prior to going remote, we had a high density of employees on the west coast and knew that if this was the norm it would penalize those who had chosen to live and work elsewhere. Today we are completely decentralized, without a physical headquarters and we’ve worked hard to instill cultural norms where no standard hours exist. For some employees, this could look like adopting west coast hours and taking the mornings to themselves and for others it may be prioritizing synchronized work in common working hours and async work at other times.

Redesigning how we connect

Human connection is still core to the way we work and going remote-first meant redesigning the way our people connect. When it comes to connection we’ve learned that one-size does not fit all. As we sought to design centralized processes, we realized that our teams needed the flexibility and discretion to design experiences to fit their needs. What has resulted is a set of guidelines and guardrails.

Offsites play a big role in our approach to connection. Each org is designated a bi-annual offsite budget on a use-it-or-lose-it basis. In the past I think there has been pressure to prove ROI for offsites based on the cost of travel, accommodation etc, but we openly recognize that ~90% of the value of coming together is to build relationships. We have optimized our offsite guidance to recommend that teams include just 1–2 days of content, to focus on the most valuable in-person activities and avoid burnout.

Quarterly offsites alone can not carry the full weight of our need for connection, so we complement this approach with remote-first tactics to build connection between in-person meetings. Some tactics that have worked for us include all company virtual events, bi-weekly town halls, quarterly all hands, social neighborhood budgets (an individual discretionary budget to fund meet-ups with colleagues) and team connection budgets (a discretionary manager budget to drive connection within immediate teams).

Async norms

When we committed to remote-first for the long term we had to address some of the more complex realities of working apart, such as how we can make decisions efficiently and asynchronously. This was an important challenge for us to solve and one which Emilie Choi discussed on our blog last year (see ‘How we make decisions at Coinbase’). Having norms around a few types of decision making tool sets (Problem/Proposed Solution and RAPIDs) has made a huge difference in driving consistency, clarifying our thinking and understanding of each other, while being able to move quickly. Another key element of this framework for us has been the use of collaborative technology like Google Docs and the concept of a ‘DRI’ or Directly Responsible Individual for each action item.

Congratulations again, Airbnb. I look forward to continuing to share learnings as we each navigate a remote-first world, and seeing more companies take the leap.


Dear Airbnb: Congratulations and Some Lessons Learned was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

6 things the US needs to stay competitive in crypto, according to execs

An update on our asset listing processes

By Brian Armstrong, CEO and Cofounder

Tl;dr: We review assets as thoroughly and quickly as possible, and list everything that we can safely and legally. But there is always more we can do to improve our asset listing process.

Recently, members of the crypto community have told us that they don’t always understand why Coinbase lists certain assets and not others. We’ve also received reports of people appearing to buy certain assets right before we announced they’d be listed on Coinbase, allowing them to benefit from price movements that sometimes accompany our listing announcements.

These are two different issues, but they both relate to our asset listing process. So, I want to address both of them here, and talk about some additional improvements we’ll be putting in place.

At Coinbase, our goal is ​​to list every asset that is legal and safe to do so, so that our customers are protected but we also create a level playing field for all the new assets being created in crypto. The number of Web3 crypto assets are exploding, with a collective global market cap of ~$2 trillion, and we want to make sure we enable the important innovation happening in this industry. Some crypto startups just getting off the ground today will become major companies in the future. Customers benefit from these innovations, but we also have a role to play protecting customers from scams and fraud. On top of all this, we want to avoid getting in the business of picking winners and losers, because we are not investment advisors. So how does one navigate this tricky space? We do it by setting minimum listing requirements (tests for legality, security, compliance, etc), and after that letting the market decide. We may also de-list assets if they stop meeting our requirements, or new information becomes available.

This process of reviewing and listing assets is rigorous and time consuming. Some assets are easier to review and list than others, due to technical details. ERC-20 tokens, for example, are relatively simple to evaluate and integrate technically so we can generally do so fairly quickly. However, assets built on new chains are more technically complex and harder to support. We would like to list all chains that meet our listing standards, but if it requires more work to do so, they may not be listed in the order some customers expect.

To some, this looks like we’re playing favorites. In reality, we review assets as quickly as possible, and list everything we can — as long as we believe it’s safe and legal. We believe that the market will ascribe value over time.

We’re also aware of concerns that some market participants may be taking advantage of information from our listings process. Examples of this might include using on-chain data to detect when Coinbase might be testing new asset integrations or using small differences in Coinbase API responses to detect when assets might be configured, but not yet launched. While this is public data, it isn’t data that all customers can easily access, so we strive to remove these information asymmetries.

Finally, there is always the possibility that someone inside Coinbase could, wittingly or unwittingly, leak information to outsiders engaging in illegal activity. We have zero tolerance for this and monitor for it, conducting investigations where appropriate with outside law firms. These firms review our listing systems and tools, leveraging blockchain forensic analysis to trace transactions, and search for possible social or professional links between Coinbase employees and those engaged in any front-running activity. If these investigations find that any Coinbase employee somehow aided or abetted any nefarious activity, those employees are immediately terminated and referred to relevant authorities (potentially for criminal prosecution).

Like all publicly traded companies, Coinbase has a trading policy in place that restricts when employees and other insiders can buy or sell company stock. But our trading policy goes well beyond this, and also prohibits employees and contractors from trading crypto assets on material non-public information, such as when a new asset will be added to our platform. We mandate that all employees trade crypto only on Coinbase’s trading platforms (where the asset is supported) so we can look out for prohibited trading activities. And we have a dedicated Trade Surveillance team that utilizes advanced software to investigate and stay ahead of possible abuse.

We know our asset listing process can always be better. So today I want to share some changes that we plan to implement over the next few quarters, in part based on feedback from the community:

Improving when we publish our decisions to list

Going forward, we plan to publish externally once a decision has been made to list an asset, but before any technical integration work begins, to try and prevent on-chain data giving signal to watchful traders. In addition, we plan to publish only once a decision has affirmatively been made to list, vs when we’ve decided to consider listing an asset.

Specially labeling newer and less proven assets on the platform

In March, we announced a new experimental label on asset pages and a disclosure when executing trades for some assets. Some assets are suitable only for more advanced traders, and we want to make sure customers know the potential risk involved. We’ll continue to develop labels and features that provide clarity for our customers.

Asset ratings and reviews

Coinbase already provides some basic information about each asset so customers can make informed decisions. Now we’re going to take it up a level by launching asset ratings and reviews so the community can share additional information on each asset, whether we list them or not.

Many consumer services today utilize the wisdom of crowds to help consumers make more informed buying decisions (Airbnb, Uber, Amazon, etc). We believe ratings and reviews can help create additional consumer protections in crypto, and ideally these can be decentralized in new protocols over time. We recognize that special care will be needed to avoid fake accounts or sybil attacks and to keep reviews high quality. We plan to launch a beta of this feature later this year.

Investing even more in screening assets and detecting potential frontrunning

We’re continuing to improve our capability to evaluate assets, by looking at the tokenomics of assets, and using on-chain forensic tools to evaluate each project. We’re also working to ensure we can move quickly to delist assets that appear to be experiencing bad activity.

***

We won’t catch everything, but these investments will help us get better, and we may be able to open source these approaches and standards to the industry over time so we can all learn from them together. We’d love to work more closely with other crypto companies to compare notes and develop best practices.

These are still early days for crypto, and it’s going to take time for us to figure everything out. What we can promise is that we’ll keep listening to our customers, keep looking for ways to improve, and keep holding ourselves to the highest standards as this space evolves. It’s always tricky to find the right balance on enabling innovation while simultaneously protecting customers from bad activity, but that is exactly the hard work that we need to do each day.


An update on our asset listing processes was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

6 things the US needs to stay competitive in crypto, according to execs

Coinbase Giving: Q1 2022 Review

By Darin Carter and Trent Fuenmayor, Coinbase Giving

Tl;dr: We continue to invest in high impact projects that advance economic freedom around the world. We’ve pledged $10M in Q1 and supported more than 20,000 people. More to do.

Coinbase Giving is the embodiment of our commitment to Pledge 1% of profits, equity, and employee time to philanthropic work that advances our mission to increase economic freedom in the world. In Dec 2021, we provided our last update. Here’s the latest and greatest on our efforts so far in 2022.

Where we are

Over the past three months, we have launched 14 new projects, supported 15 organizations, pledged over $10M in philanthropic grants, and are directly impacting the economic freedom of more than 20,000 people.

Areas of focus

In 2022, our focus has been to support high-impact work that aligns with four broad focus areas:

  1. Crypto-Literacy: Increasing education and access to crypto
  2. Infrastructure: Accelerating the development of open-source crypto protocols
  3. Web3 Talent Development: Fostering the next generation of crypto talent, no matter who they are or where they are located
  4. Global Development: Funding crypto-forward projects that advance global development, as defined by the United Nations Sustainable Development Goals.

Highlights

Investing in and increasing the levels of education and access to crypto

Blockchain curricula is starting to make its way into the classroom and Coinbase Giving has continued to invest in this vital work. To meet the tremendous demand for web3 talent, Coinbase Giving has decided to triple the number of community scholarships that we’re granting this year, from five to fifteen full-ride scholarships. In addition to funding the scholarship program, the Coinbase Giving team has provided grants to accelerate the work of incredible organizations operating at the center of web3. For example, UrbanTxt is building a model to verify skills on-chain via NFTs, allowing students to build an academic history that goes with them. Organizations like CryptoTutors are building educational resources to meet the American Library Association standards, while paving the way for crypto to reach the 160 million Americans who use the resources available at the public library. Finally, Ed3DAO is building DAOs for educators, with the aim of empowering teachers, schools, and school communities with new types of empowerment and creativity.

Accelerating the development of crypto protocols that underpin the cryptoeconomy

Regenerative Finance (Re-Fi) seeks to enable global coordination. One of the core benefits of blockchain is that it empowers any person or entity to coordinate toward a common goal, based on shared rules contained within the underlying protocol. We strive to empower founders and teams that are growing the benefits this space can offer. We are excited to officially announce our collaboration with Toucan, a public infrastructure project for carbon markets running on open blockchains. Their mission is to grow and strengthen the crypto ecosystem while addressing one of the most significant coordination failures of our time — our collective response to climate change. Our grant to Toucan will create a pool of funds available as developer grants to help builders create new sustainability-focused products and services atop Toucan’s protocols. If you would like to learn more or apply, please do so here.

Fostering the next generation of crypto talent, no matter where they are located

Organizations like Code to Inspire, Crypto Kids Camp, Qala, and Summer of Bitcoin are embracing blockchain and web3 technology education, and bringing it to their communities. Code to Inspire and Crypto Kids Camp are teaching girls in Afghanistan and children in South LA respectively. They’re focused on developing coding talent and effectively using crypto as a tool of the future. Qala and Summer of Bitcoin are doing the same for university students in Sub-Saharan Africa and India respectively. And, finally, DreamDAO and Artemis Academy are two more programs that are providing community and job opportunities for the next generation of web3 talent. We couldn’t be more excited and proud to support their missions.

Funding projects that advance global development

Emerging Impact and Mercy Corps are evolving how humanitarian aid is delivered. In Haiti, we partnered with Hope 4 Haiti and Emerging Impact to positively impact roughly 1,500 Haitian citizens by piloting a new model for on-chain humanitarian aid. The pilot program will educate and onboard families to crypto via a digital wallet and a physical card. The impacted individuals will be able to use the funds for goods and services at more than 30 participating merchants in Haiti. Similarly, in Uganda, we are partnering with MercyCorps and Crypto Savannah to build blockchain-enabled digital IDs and crypto transfers for 35,000 refugees over two years. Given the broad range of emerging use cases for blockchain to support unbanked/underbanked and displaced communities, all of these solutions represent major potential for catalytic change, and we’re excited to see our trusted partners pilot them.

Learnings

  1. ReFi — Regenerative Finance — is heating up. Coinbase Giving was delighted to attend ETH Denver and Celo Connect, where we met many builders in the ReFi space. But it’s not just carbon credits on new chains that are interesting. Blockchain technology is addressing other sustainability issues, such as water pollution and biodiversity, as well as enabling circular giving and improving economic access. This is an emerging area of best practice and we are excited to support its growth.
  2. Off-ramps remain integral to social impact. We are seeing increased appetite to distribute aid in crypto, including the over $100M donated by the crypto communication to the humanitarian response in Ukraine. But ways to spend this crypto aid remain crucial, particular for refugees or populations that live in areas without easy access to financial services and fiat rails. We are excited to see initiatives like Connect the World take off, but more needs to be done, such as development on lightweight wallets and working with local merchants to accept crypto.
  3. Crypto-powered Universal Basic Income (UBI) has enormous potential. Projects such as ImpactMarket are bringing UBI to crypto. Making donations or purchasing tokens enables recipients all around the world to be guaranteed a basic income via monthly crypto transfers and can provide the foundation for recipients to invest via DeFi or other projects.
  4. Builders from all backgrounds contribute to the ecosystem. Our recent Innovation Challenge proved that the best ideas can often come from outside of the crypto industry. Our participants were teachers, doctors, dentists, psychologists, supply chain workers, and community leaders from all over the world. Unsurprisingly, we found that the people who are closest to the problems worth solving are able to surface the best solutions. You can learn more about our winners here.

We’ll keep you updated on all of our work and please follow @coinbase to provide feedback and input on Coinbase Giving and what we should focus on.


Coinbase Giving: Q1 2022 Review was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

6 things the US needs to stay competitive in crypto, according to execs

Be web3-ready in a few clicks with Coinbase Pay

By Prakash Hariramani, Senior Director, Product Management, and Bipul Sinha, Senior Product Manager

Coinbase Pay Image

Today, we are introducing Coinbase Pay, the easiest way for Coinbase users to fund their Coinbase Wallet from the Chrome browser extension and explore web3.

Over the past year, DeFi, NFTs, and other web3 services have seen tremendous adoption. However, a key step in being able to access and use these services — funding a self-custody wallet — is a cumbersome process that involves multiple steps, switching between apps, and manual transfers.

Coinbase Pay eliminates these steps, and makes it easy and intuitive for anyone to participate in DeFi or purchase NFTs, in just a few clicks.

Cash. Click. Crypto.

Before Coinbase Pay, users who wanted to add funds to their Coinbase Wallet from the browser extension needed to navigate to Coinbase.com, sign in to their account, copy-paste their wallet address, and manually transfer funds from their Coinbase account.

The process was not only cumbersome, but also left the user vulnerable to user error. For example, if funds were accidentally sent to the wrong wallet address, they would be irretrievable.

Coinbase Pay makes the process faster, easier, and more secure than ever before. All you need to do is select “Add crypto with Coinbase Pay” when you want to add crypto to your Coinbase Wallet extension.

Next, you simply select the currency you want to add to your wallet, specify the amount, confirm the transaction–and that’s it. No more switching between apps, copy-pasting addresses, and manually transferring funds.

Coinbase users based in the US and Canada can currently use their debit cards and bank accounts for transfers, with more payment options enabled globally soon.

First-time users of Coinbase Wallet will need to link their self-custody wallet to their Coinbase account before being able to use Coinbase Pay.

Making it even easier to access the world of DeFi, NFTs, and more

At Coinbase, our mission is to increase economic freedom in the world. A key part of realizing this mission is building crypto products and services that are easy-to-use and accessible. Coinbase Pay makes it even easier for users to get web3-ready with Coinbase Wallet.

With the Coinbase Wallet extension, your Chrome browser can securely interact and engage with all manner of web3 applications. Kickstart your NFT collection, earn yield through DeFi lending protocols, and grow your crypto portfolio with hundreds of thousands of tokens supported via decentralized exchanges (DEXes).

And now you can engage with dapps with greater peace of mind, knowing that your payment credentials remain safely stored within Coinbase.

Looking forward

We are continuing to build new features into Coinbase Wallet to make it the most user-friendly and accessible self-custody wallet in the world, making it easier for more users to enter the world of web3. We will also continue to expand Coinbase Pay to bring the benefits of seamless fiat onramp to the crypto ecosystem. Stay tuned for more updates.

Make sure to follow us on Twitter for the latest news about Coinbase Wallet and Coinbase Pay.

Coinbase Wallet is a self-custody wallet providing software services subject to Coinbase Wallet Terms of Service and Privacy Policy. Coinbase Wallet is distinct from Coinbase.com, and private keys for Coinbase Wallet are stored directly by the user and not by Coinbase. Fees may apply. You do not need a Coinbase.com account to use Coinbase Wallet.


Be web3-ready in a few clicks with Coinbase Pay was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

6 things the US needs to stay competitive in crypto, according to execs

Lighting Up The Map: How Coinbase Plans To Scale Globally

By Nana Murugesan, VP, International and Business Development

Coinbase will adopt a go broad and go deep approach to scale globally in order to further its mission of bringing more economic freedom to each and every individual and business around the world. Leadership roles are now open across the globe to build our international presence.

  • Go Broad: launch foundational products that are a gateway to Web3 and crypto in every country*
  • Go Deep: launch localized infrastructure and public facing products with a full suite of services

I joined Coinbase around a month ago to lead business development and international operations teams to further our mission, strategy, and culture around the world. In this blog, I wanted to share our international strategy, how we are thinking about building our international operations, and the exciting leadership roles we just opened up around the world for those interested to join us!

Crypto is global

By its very nature, crypto is global and decentralized, and as stated in our blog yesterday, we have an ambitious mission to increase economic freedom in the world that will rely on our ability to bring our products to customers globally. Crypto can have a seismic impact in driving toward a more equitable global economy. This is for a number of reasons, including, but not limited to, the fact that in new high growth markets, the barriers to entry into the traditional financial system may be beyond the reach of many citizens. For instance, traditional financial systems may require official identification or a credit history to access financial services and the security it provides. In larger, more diversified economies, we take these things for granted, but in many parts of the world, they’re unavailable to a majority of the population.

Advancing economic freedom

There are billions of people around the world who are underbanked or unbanked. According to the World Bank’s Global Financial Inclusion database, 1.7 billion adults are unbanked, and while the number of underbanked is harder to identify, it’s an issue that impacts almost every country. Yet two-thirds of those identified as unbanked own a mobile phone that could help them access financial services. These numbers are even worse for women, who are roughly 10 percent less likely than men to have access to financial services. Where women are not financially empowered, the trend lines are also more profoundly negative, correlated to a less established civil society and the seeds of undemocratic norms. These are precisely the types of challenges that crypto is uniquely equipped to solve.

Economic freedom is unevenly distributed around the world. Crypto enables economic freedom. At Coinbase, we believe everyone deserves access to financial services that can empower them to create a better life for themselves and their families, regardless of their location, gender or socioeconomic status.

Taking Coinbase global

Going global is complicated and this is compounded by rapidly evolving regulatory international frameworks for crypto. Our approach globally will be consistent with our approach in the United States: we will work with governments and regulators in different markets, and will always aim to be the most trusted and compliant crypto company in any market. As our co-founder & CEO Brian Armstrong has said, “clear rules of the road allow for technological innovation and investment and give the public and policy makers confidence that these markets are fair.” That is why, in Brian’s words, “we see [regulation] as a business enabler.” We will take that perspective in our global expansion.

A key first step of our strategy is to hire experienced regional and country leaders across the globe. We are now kicking off an extensive global expansion strategy, with hiring and investment plans to enter these markets which will ultimately allow Coinbase to serve customers more locally:

  • Americas — Latin America, Canada
  • EMEA — Europe, Middle East and North Africa, Sub-Saharan Africa
  • APAC — South Asia, Southeast Asia and Oceania, North and East Asia

[Link to newly opened Regional Managing Directors, Country Directors, and other Global & Regional Leadership roles. And, keep an eye out for more roles opening in the coming months]

With these leaders in place, we will develop and execute on in-market plans to (1) launch our products, (2) establish our presence with top local talent, (3) grow our customer base, (4) build our business, and (5) collaborate closely with our external constituents [including regulators, financial institutions and partners]. ​​In parallel, we will explore new market entry through acquisitions.

To accelerate the growth of the cryptoeconomy globally, Coinbase Ventures will double down on regional investments, adding to our portfolio of platforms such as CoinSwitch Kuber and CoinDCX in India, Bitso in Latin America, and Rain in the Middle East.

We understand that a one-size-fits-all approach won’t work as each market is unique, with its own set of opportunities, challenges, political dynamics, and cultural norms. To address this, we plan to take a go broad and go deep approach.

Go Broad: launch foundational products that are a gateway to Web3 and crypto in every country*

Coinbase’s mission is to increase economic freedom in the world, and we take this commitment seriously. The first tenet of our global strategy is to get crypto into the hands of any person who wants it, regardless of their financial status. This means we may enter international markets at scale with our decentralized and non-custodial products such as Coinbase Wallet. This allows us to offer local communities a light-weight, user-controlled, simple and secure interaction with the crypto economy and to enable fun experiences such as NFT drops from local creators. As regulatory frameworks and markets develop, we will look to go deep, as elaborated below.

Go Deep: launch localized infrastructure and public facing products with a full suite of services

In those countries that have clearly defined crypto regulation and there is a clear path for us to offer services in a way that is fully compliant with local laws and with a reasonable content moderation philosophy, we will plan to provide access to a full suite tailored to the local market. For our retail customers, this includes our custodial, full-fiat trading products, such as our main Coinbase App, and products that host user generated content (or include social features) such as our upcoming Coinbase NFT marketplace. For our institutional customers, we will plan to offer a full suite of advanced prime brokerage services, including custody and private client support.

I am excited to embark on this journey, and I look forward to providing updates along the way. At Coinbase we’re building an open financial system for the world and we’re always looking for top talent ready to do the best work of their careers to help us get there. If you think this could be you, we’re hiring!

*Subject to local regulation.


Lighting Up The Map: How Coinbase Plans To Scale Globally was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

6 things the US needs to stay competitive in crypto, according to execs

Coinbase’s Philosophy on Account Removal and Content Moderation

By Brian Armstrong

In the last few years, it’s become increasingly common for tech companies to censor customers or close their accounts for a range of reasons (e.g., misinformation). Luckily, as a crypto business we don’t face this issue as frequently as a social network does, but we still need to set clear policies around acceptable use of our products. As our product suite grows, it will even include products that host user generated content like NFTs.

Our high level philosophy is that, in a democratic society, the people and their elected officials should decide what behavior is allowed and not allowed by setting laws. We think it sets a dangerous precedent when tech companies, such as Coinbase, or their executives start making judgment calls on difficult societal issues, acting as judge and jury. This approach sounds simple in theory, but in practice it is anything but.

First, it can be very complex to determine whether an activity is legal or illegal. Laws vary greatly across different countries, states, and regions. Some activities are legal only if you have a license. Some activity is in a gray area. Some unjust laws go unenforced. Like most companies, we refer suspected illegal activity to the relevant authorities, but we can’t expect to receive a timely response or opinion back from them given the many demands on their resources. Unfortunately, this puts us, along with most companies, in the unfortunate position of having to make our own determinations about what activity is legal or illegal.

Second, even if some activity is legal, it may be something that is deeply troubling to have on the platform. The world is littered with polarizing, uncomfortable, or obscene content that may still be legal. This is where companies start to exercise even more judgment on what they allow. But there is great danger of falling down a slippery slope, having to render decisions on every difficult societal issue, where you are sure to upset someone no matter where you land. Without some strong principled based approach, these decisions become arbitrary and capricious, opening the company to attack.

Finally, every company works with other companies that have their own set of moderation and deplatforming policies. For instance, for any app to be listed in the Apple and Google App Stores, it needs to play by the rules of those two companies. In the financial services world, we also work with banks and payment processors who have their own acceptable use policies. Very few companies are completely vertically integrated, with the luxury of making their own decisions in a vacuum.

So how should a company implement a reasonable approach based on the above constraints? We’ve come up with our own answer, and I want to share it here so our customers can understand it, and in case it helps other companies.

Our approach

First, it’s important to differentiate our approach based on the type of product. Coinbase has a broad product suite, but for moderation purposes we group our products as either infrastructure products or public-facing products when thinking about how to moderate them. Infrastructure products enable access to basic financial services and are typically used privately by a single customer, while public-facing products often host user generated content and have social features visible to large numbers of users. Ben Thompson’s article on moderation in infrastructure illustrates how companies typically take a different approach for each of these products.

For our infrastructure products, we use rule of law as the foundation of our approach, because we believe that governments, not companies, should be deciding what is allowed in society. We also believe that everyone deserves access to financial services, and a test of legality should be sufficient for these products.

For our public-facing products, we again start with rule of law as the foundation. But assuming something is legal in a certain jurisdiction, we also go beyond this and moderate content that is not protected speech under the First Amendment. We’re not legally held to the First Amendment as a company, and the First Amendment is a U.S. focused concept only, but we’ve chosen to use it as the guiding principle of our content moderation approach because it is in line with our values and helps ensure we don’t fall down a slippery slope over time. The First Amendment has hundreds of years of case law built up, and provides a reasonable framework to moderate content such as incitement, fighting words, libel, fraud, defamation etc. David Sacks does a great job describing this approach in this blog post.

Finally, there are cases where we want to work with external partners, such as the App Stores, and need to follow their moderation policies to do so. Sometimes third party payment providers have their own policies. For payment providers, we can simply disable functionality related to that partner if there is a problem with a specific user, while continuing to offer Coinbase services. But getting kicked out of the app stores wouldn’t help anyone. So when working with partners, our approach is to be free speech supporters, but not free speech martyrs, and to make accommodations if it is essential for us to function as a business.

This is obviously a complex issue, and hopefully the above approach starts to show a path through it that doesn’t devolve into arbitrary and capricious decision making. To boil down the above approach, we ask the following questions for our public-facing products:

1. Is the content illegal in a jurisdiction in which we operate?

A. If yes, then remove in that specific jurisdiction

2. Is the content a free speech exception under the First Amendment?

A. If yes, then remove globally

3. Has a critical partner required us to remove the content?

A. If yes, then remove the content or disable the functionality of that partner for the affected user

If the answer to any of these 3 questions is “Yes” we will take some moderation action, such as taking down content and in severe cases terminating the account.

Decentralization is the ultimate customer protection

Most of this post has been about how we can create a reasonable moderation policy that doesn’t get co-opted over time, succumb to pressure, or descend into us playing judge and jury. This is important so that Coinbase is able to stand up to pressure. Of course, the decentralized nature of cryptocurrency offers its own important protections here, and those protections get stronger the more our products decentralize.

If our policy above fails, and Coinbase starts making bad judgment calls or turns evil, customers can withdraw their crypto to any other competing exchange, wallet, or custodian. Compare this to social networks today, where you can’t take your followers with you. Your data is owned by one company, in a proprietary format. The open nature of crypto protocols provides lower switching costs, which is an important customer protection, even for relatively centralized crypto products. But decentralized, or self-custodial, crypto products have an even greater protection because the company is simply providing access to something running on-chain. For instance, no one can deplatform your ENS name without taking every ENS name offline. Decentralization moves you from the slippery slope to the crypto cliff, where the would-be censor must compromise an entire blockchain to censor just one person.

Decentralization is a spectrum, and Coinbase is moving farther down this path over time, embracing self-custody with Coinbase Wallet, stepping up user education around private keys, and by investing in Bitcoin core development and web3 protocols. The more decentralization we can support, the better protection customers will have.

Conclusion

We believe everyone deserves access to financial services, and that companies should put appropriate controls in place to prevent censorship or unjust account closures from taking place. For centralized financial infrastructure products, we believe rule of law is a sufficient standard for moderation, while for decentralized products even greater protections can be provided by the blockchain. We also acknowledge that public-facing products deserve some additional consideration, and that the First Amendment can be used as a reasonable test or boundary. We believe this approach is consistent with our mission of creating more economic freedom in the world and with the ethos of crypto.

Companies are in a difficult position when they choose to censor or terminate a customer account. What often seems like an easy decision, especially under public pressure, turns out to have larger unintended consequences and sets a dangerous precedent for the role of private companies in society. I’m sure we won’t get it perfect with our policy above, but my hope is that we’ve laid out some principles we can fall back on when difficult decisions arise, and that investors, customers, and employees can have a better understanding of our process.

Further Reading


Coinbase’s Philosophy on Account Removal and Content Moderation was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

6 things the US needs to stay competitive in crypto, according to execs

Tobias Lütke, CEO of Shopify, to join Coinbase Board of Directors

By Brian Armstrong, CEO and Co-Founder

Commerce pioneer and respected open-source programmer, Lütke will bring his global experience and perspective to bear as Coinbase seeks to expand its international footprint and build new products

I’m excited to share that Tobias “Tobi” Lütke, CEO and founder of Shopify, will join Coinbase’s Board of Directors*.

Tobi brings a wide variety of skills and expertise to the Coinbase board. First and foremost, he is a tremendous entrepreneur, building Shopify from the ground up into a global commerce leader. He also deeply believes in the power of crypto and was an early adopter of crypto through Shopify’s integration with Coinbase Commerce. Serving millions of merchants in more than 175 countries, Shopify sits at the nexus of three important areas that crypto seeks to revolutionize: Finance and payments, web applications, and the internet itself.

A builder at heart, Tobi began writing computer code in his early teens. He soon became an active member of the open source community, contributing to projects such as Ruby on Rails, Liquid and ActiveMerchant. Building on his experience developing open source projects, Tobi launched an ecommerce platform in 2004 focused on selling snowboarding equipment. This online store soon grew into what we know today as Shopify. Tobi’s experience as a founder & CEO, scaling his business from a small, niche online marketplace into what has become a critical backbone of global ecommerce will help guide Coinbase as we seek to bring crypto to more people and businesses around the world.

“The concepts of decentralized finance and entrepreneurship exemplify the promise of Web3 where opportunity exists for the many, not the few,” said Tobi Lutke. “Coinbase and Shopify share this like-minded vision, and I am excited to join the Board to support the future that Brian and the Coinbase team are building.”

Shopify put a powerful, yet simplified platform into the hands of millions of merchants across the globe, and in the process changed the lives of billions of people. With his guidance, we hope to unlock crypto’s potential to increase economic freedom in the same way Shopify democratized online commerce.

I look forward to working with and learning from Tobi as we work to grow the cryptoeconomy.

*Subject to formal Board confirmation later this week.


Tobias Lütke, CEO of Shopify, to join Coinbase Board of Directors was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

6 things the US needs to stay competitive in crypto, according to execs

Proof of alignment

What we’ve already done to align ourselves with our customers, and what we’re doing next.

By Paul Grewal, Chief Legal Officer

Summary

Coinbase is committed to providing a fair, transparent and equal experience across our suite of trading products. We take a number of steps to ensure this, including:

  • We do not coordinate asset listing decisions with anyone not directly involved with our review and listing process. This includes members of our management team that do not sit on our asset listing committee (the majority of Coinbase’s leadership team does not sit on our listing committee), our board directors, venture capitalists, or outside investors
  • Coinbase Ventures has never sold tokens from investments that it has made, and is staffed by a separate team with no influence over which assets may be supported on Coinbase platforms
  • We have no control over, or proprietary information about, the plans of early digital asset backers, including their buying or selling activities for assets we list.
  • We are continually looking into additional mechanisms to align ourselves even further with our customers, starting with enabling users to track Coinbase’s own portfolio of digital assets for informational purposes.

In Detail

Coinbase’s goal is to provide a fair and efficient marketplace. As mentioned during our launch of Asset Hub, our goal is to list every compliant asset possible. In our ideal world, Coinbase would simply list every asset that met the requisite legal and cybersecurity standards, while giving our customers as much information as possible to make educated investment decisions. Being listed on our exchange would not be considered an endorsement; it would simply be an indication that the asset had met our listing standards.

The issue is that because an asset listing can be time consuming both from a technical and legal perspective, it is still scarce; because it is scarce, it is considered valuable; because it is valuable, it is considered by some to be an endorsement. This is similar to the dynamic that ensued around Twitter verification, where what was initially simply an anti-impersonation measure inadvertently became a status symbol.

As part of our commitment to transparency, we want to shed further light on how our current listing process works, as well as sharing additional information on the steps we take to ensure that our listing and ventures teams are kept completely independent, and, finally, offer some insight into how we think about the crypto assets we share on our corporate balance sheet.

First, as we’ve discussed before, here’s how we operate.

Asset Listing

  • Coinbase makes listing decisions through a formal process run by a special committee called the Digital Asset Listing Group, which follows regular procedures, which are documented in formal policies, and which applicable regulators must review and approve.
  • The Digital Asset Listing Group votes on what assets can be listed, informed by a rigorous vetting/review process that evaluates assets for compliance, legal, and information security concerns.
  • The voting group does not include Coinbase CEO Brian Armstrong or other Coinbase Global Board members.
An example of our disclosure statement
  • The vote is not impacted by whether Coinbase Ventures or our investors have a stake in the asset, and Coinbase Ventures is transparent in disclosing our interests in projects.
  • Coinbase has a conflict of interest policy that prevents board members or Coinbase employees from being involved in a listing decision where they have a financial interest.
  • The majority of assets that the Digital Asset Listing Group reviews are submitted directly by asset issuers through our Asset Hub portal.
  • This process is strict, and the majority of assets submitted for evaluation are rejected.

Employee Trading

  • Coinbase restricts all employees from trading the tokens it is considering for listing to make sure no one at Coinbase is front running assets, even if they don’t work on our asset listings team.

Early Backer Trading

  • Coinbase does not coordinate listing decisions or timing with early backers of a project (including VCs) or in assets being reviewed.
  • We have no control over or proprietary visibility into the plans of early token backers (VCs, founding team, etc.) on their selling activities.
  • Because trading typically occurs across many exchanges (not just Coinbase), and because large holders and even asset issuers are often unknown, we do not have the ability to play a role in any lock-up type mechanisms.

Coinbase Ventures

  • Coinbase Ventures has never sold tokens from investments that it has made, nor does it have any influence over which assets are supported on Coinbase platforms.
  • We are long term hodlers of our investments. It may make sense to liquidate some of our holdings in the future, but we do not presently have any plans to.
  • Our Ventures and Listings teams operate completely independently of each other, with no overlap in personnel or shared information.

Corporate Balance Sheet Holdings

  • Coinbase holds on our balance sheet the majority of the assets that we support on our platforms, which helps ensure that our interests are aligned with those of our customers.
  • Like our Coinbase Ventures investments, we are also hodling these assets with a long term view, with no present plans to sell.
  • Though it’s impractical to hold large positions of some lower liquidity assets, we aim to have some corporate exposure across the breadth of our supported assets.

Provable Alignment

With that said, we are always looking at new ways to more clearly show alignment with our customers. While the Coinbase Ventures portfolio is already public, and we’ve also published our material crypto assets held in our 10-Q, we plan to make our holdings even more transparent.

Soon we’ll be updating our asset disclosures in a way that makes our holdings even more obvious, by showing (a) which assets are currently held by Coinbase and (b) which assets were backed by Coinbase Ventures, whether they are currently listed or not.

Now, we don’t claim that our portfolio is the best. Nor do we advise that you buy it. But by making it even more clear in the user interface as to which assets are Coinbase-held and Coinbase-backed, you can decide whether or not to align yourself with Coinbase’s crypto holdings. You can also choose to pursue a completely different strategy. And that is our goal: to provide a fair and efficient marketplace where the participants decide.


Proof of alignment was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

6 things the US needs to stay competitive in crypto, according to execs

Announcing our second developer grant winners

By Trent Fuenmayor, Program Manager, Coinbase Giving

In August, we made a call for applications through our Crypto Community Fund focused on blockchain developers who contribute directly to a blockchain codebase, or researchers producing white papers. Today, we’re excited to announce the Fund’s second batch of developer grants to 6 recipients: AMIS Technologies, Josie, Escanor Liones, WeFuzz Research, and two developers funded through a partnership with Brink.

All candidates demonstrated a consistent history of contributing to blockchains, as well as innovative ideas, and provided the Fund’s advisory board with a clear, actionable outline of the projects they intend to work on. They will both be funded to work on their projects for all of 2022, with their grants funded in BTC or USD based on the recipient’s preference.

AMIS Technologies (github, blog) will be providing various digital signature protocols based on multi-party computation (abbrev. MPC) in the blockchain including ECDSA, Schnorr Signature, Bls Signature, and Bip32( i.e. Hierarchical deterministic wallet). The audited Library will continue to open to developers. They believe that MPC will be an alternative option for private key management.

Josie (github, twitter) will be working on the unit, functional, and fuzz testing in Bitcoin Core by focusing on improving test coverage and refactoring for performance and clarity. He will also be supporting three researchers on a project centered around analyzing bitcoin transactions, specifically on fees and privacy when used as a means of payment. Last but not least, he will be performing code review and testing PRs in Bitcoin Core.

Escanor Liones (github, twiter) will be designing and implementing a sequence of blockchains to promote the study, advancement and improvement of mathematics, cryptography and digital security. The present grant will fund one of those blockchains. His previous published work focused on Information-Theoretical Private Information Retrieval (IT-PIR) in the form of a practical Postgres C/C++ Extension using Quantum Resistant Lattice-based Cryptography; see the open sourced implementation here. A paper will be published with the details about the design in early summer; and, a blog or a paper towards the end of the year speaking to the implementation and the experience of designing, building and deploying a blockchain.

WeFuzz (github, twitter, website, discord) plans to build a, fully decentralized, crowdsourced security audit and bug bounty platform: a set of smart contracts that allow developers and companies to get their smart contracts, blockchains, web3 applications etc., audited by the decentralized auditors’ and hackers’ community and makes it easy for everyone to secure their assets. WEFUZZ (Chaitanya and Ranjeet) aims to become the *Hacker DAO*.

Brink (website) is a 501c3 that exists to strengthen the Bitcoin protocol and network through fundamental research and development, and to support the Bitcoin developer community through funding, education, and mentoring. They support and mentor new contributors to open source Bitcoin development through their fellowship program, and support the work of established Bitcoin protocol engineers through their grants program. Coinbase has funded two Bitcoin core developers through their partnership with Brink.

The Crypto Community Fund grantees will provide periodic updates about their work through public blog posts. The Fund will also be placing an additional call for developer grants later this year, and encourages future applicants to subscribe to updates here.


Announcing our second developer grant winners was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

6 things the US needs to stay competitive in crypto, according to execs

Working at Coinbase: Intense and demanding, balanced by deliberate recharge time

By L.J. Brock, Chief People Officer

We’re often asked a version of this question: “What’s it really like to work at Coinbase?”

Our culture doc provides a great overall perspective on working here, but I think it’s important to address this question head-on, too.

The bottom line: We work incredibly hard at Coinbase — for most of us, Coinbase is the most intense place we’ve ever worked. That intensity is only magnified by the current moment in crypto, and it often results in long days and long weeks.

However, because of that intensity, we’re also deliberate about finding time to recover between sprints. How deliberate? This year, we’re experimenting with four recharge weeks (roughly one per quarter), when nearly the entire company will shut down so we can all enjoy downtime without work piling up.

Four weeks of coordinated recharge time might sound like a lot of time off for a company in hypergrowth, but given the intensity of our work throughout the year, we think this is the best way to ensure our pace is sustainable for the long term.

We know this approach wouldn’t work for every company, and we also know Coinbase isn’t for everyone. But if you want to work at the cutting edge of crypto and tech — and if you’re excited about pushing your skills to the limit while knowing you’ll have regular opportunities to recharge — there’s no better place to be.

An all-in environment

Why is Coinbase so intense? Because the massive opportunity in front of us demands the best from each of us, every day.

We’re upfront about this in our culture doc, but it’s worth emphasizing: “We are a winning team, not a family, and have high expectations for performance and delivering results…. We have an intense work culture, and are regularly pushed out of our comfort zones.”

What’s this mean in practice?

It means we don’t promise 9 a.m. — 5 p.m. hours or 40-hour work weeks — many days and weeks are long, because that’s what it takes to get the job done.

It means we can’t simply do more in some areas by doing less in others — the risk of missing out on a huge opportunity is too great.

It means we aren’t wedded to long-term plans — yes, we thoughtfully map out quarterly and annual plans, but we’re prepared to pivot at a moment’s notice if we see a better opportunity to serve our customers.

We’re laser-focused on achieving our mission of increasing economic freedom in the world, and we encourage our teams to set “uncomfortably ambitious” goals. That’s the only way we can stay ahead.

An ‘act like an owner’ mentality

One of our cultural tenets is “act like an owner.” We expect our employees to take 100% responsibility for achieving our mission, but we also empower them to work in the way that’s best for them, and to rest and recharge between their sprints.

We do this in part through our remote-first stance, which enables almost all employees to choose whether to work from an office, from home, or through a hybrid approach — whatever works best for them and their families. This policy has been hugely successful, enabling us to hire top talent from around the world and earning positive reviews from our employees.

We also empower employees to take charge of their well-being through our flexible time off (FTO) policy (in eligible countries), which means most employees don’t need to accrue time off before using it or worry about hitting an annual limit.

Despite our FTO policy for most employees, we realized in 2020 that many employees weren’t taking enough time off to recharge, either because they didn’t want to force their teammates to cover for them or because they didn’t want to fall behind on their work.

We knew this was unsustainable, so we scheduled a recharge week at the end of 2020 and two recharge weeks in 2021, when nearly the entire company would shut down. (Teams with critical 24/7 responsibilities, such as customer service and security, scheduled alternate recharge weeks.)

Subsequent employee surveys made it clear: recharge weeks work. In fact, 52% of employees said recharge days and weeks were the primary tool that helped them rest and recover in 2021.

That feedback — and our expectation that this year will be just as intense as last year — prompted us to schedule four recharge weeks for 2022, roughly one per quarter. We have no expectation we’ll continue with four recharge weeks beyond 2022 — we’ll evaluate as we go — but we’re confident this is the right approach for us this year.

Even though we’ve scheduled four recharge weeks for 2022, we didn’t make any changes to our FTO policy — we’ve encouraged employees to schedule vacations during our recharge weeks when they can, but we know that’s not always possible, and that’s OK.

We also know that, despite our best intentions, there are times when some employees need to work through a recharge week. When this happens, we do our best to make it up to them so they have dedicated time to recharge, too. We’re OK with this tradeoff — we prefer to implement a solution that regularly works for 90% of employees than to endlessly search for an elusive “perfect” solution.

Acting like an owner truly is key to success at Coinbase — our top performers take recharge seriously, but they also don’t hesitate to jump in and deliver for the company whenever and however is needed.

A once-in-a-career opportunity — and we’re hiring

There’s no denying that Coinbase is one of the most exciting places to work right now.

In just the last 12 months, we’ve tripled our headcount, expanded into new markets, brought new crypto innovations to our customers and become a publicly traded company — and we still feel we’re just getting started.

As we say in our culture doc, “We are optimistic about the future and determined to get there.”

If you share that optimism, and if my description of working at Coinbase resonates with you, take a look at our Careers page — we’re hiring for hundreds of roles in dozens of fields, and we want exceptional people in every seat, working together towards our mission.


Working at Coinbase: Intense and demanding, balanced by deliberate recharge time was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

6 things the US needs to stay competitive in crypto, according to execs