Coinbase has promptly addressed a significant glitch that resulted in push notifications about its prediction markets service being sent to uninterested customers, as confirmed by CEO Brian Armstrong in a recent update on social media platform X.
The issue came to light when a customer expressed frustration over receiving multiple notifications concerning college basketball bets within a short timeframe. The customer suggested that this was part of a strategy by Coinbase to lure users into sports gambling, thereby increasing their fee revenue. In response, Armstrong acknowledged the error, stating, “Looks like there was a bug on targeting for these push notifications — getting fixed now. Apologies for the trouble, and thank you for raising it.”
Armstrong also took the opportunity to clarify the company’s position on prediction markets. He emphasized that Coinbase endeavors to be an “everything exchange,” allowing users to trade a variety of legal assets without any pressure to engage in specific markets. The CEO reaffirmed the company’s commitment to transparency and customer experience, noting the recent push notifications were unintended.
Coinbase’s venture into prediction markets was announced in December 2025, marking its entry into this new domain within the U.S. Initially, the company facilitated access to prediction markets through market flow from Kalshi, with future plans to offer contracts from other platforms as well. This initiative aimed to allow users to manage their prediction market positions alongside their existing crypto, equity, and cash holdings.
Shortly after the announcement, Coinbase expanded its reach in the sector by acquiring The Clearing Company, a startup specializing in prediction markets. During a February earnings call, company executives highlighted the broader strategy of diversifying Coinbase’s offerings. Armstrong noted that the digital asset industry was evolving, with the next phase linking more closely to payments, financing, and programmable financial services.
“We drove all-time highs across our products: Coinbase One subscriptions reached 1 million, trading volume and market share doubled, and USDC held on the platform reached an all-time high,” Armstrong stated during the call, showcasing the success of the Everything Exchange concept.
The Everything Exchange, which serves as a cornerstone of Coinbase’s current strategy, weaves together three layers of activity: trading, financial services, and applications, positioning the platform as an all-encompassing hub for various financial activities.
