Coinbase CEO Brian Armstrong has admitted that the exchange's push into content coins and the promotion of its crypto social media app Zora were a mistake, saying the company has since pivoted to artificial intelligence products. The admission came in response to criticism from X user smileyXBT, who accused Coinbase of chasing trends instead of supporting its core community.
Armstrong concedes errors
Armstrong acknowledged that content coins "didn't work" and confirmed that Coinbase had shifted focus earlier this year. He wrote, "We messed up, time to turn the page." However, he pushed back against the notion that the pivot to AI agents replaces community, stating that Base, Coinbase's blockchain network, has been focused on trading, payments, and agents—in that order—and that all three are intertwined.
The criticism from smileyXBT highlighted that Base spent the last year promoting Zora while doing little to build a competitive advantage. The user also pointed to creator coins tied to individuals with questionable histories, noting that users were harmed by tokens launched by Base founder Jesse Pollak and former Coinbase CTO Balaji Srinivasan.
Content coins fail to gain traction
Content coins, which launched alongside posts and new accounts on Zora and Base, were designed to mimic Instagram-style engagement but ultimately failed. In July 2025, Zora was integrated into Base, but earlier in the year it had pivoted from NFT minting to content coins, upsetting artists who relied on the app.
Confusion surrounded the token system. Coinbase initially denied that Base had launched an official token, despite Base posting "base is for everyone" on Zora, which automatically created a content coin. Most tokens launched by Pollak lost significant value within months.
Scandal and decline
In August 2025, Zora promoted a fake Tyson Fury account and considered collaborating with alleged serial rug-puller Sahil Arora. Screenshots revealed that Pollak was willing to overlook Arora's history, telling him to drop the "bad guy positioning." The incident led to new guidelines that hide tokens breaking community rules.
Data from Dune Analytics shows Zora's daily volume has fallen from nearly $63 million in May 2026 to under $100,000 in recent months—a 99.8% drop. The Zora token has also declined roughly 96% from its all-time high in August 2025.