Coinbase’s Chief Legal Officer, Paul Grewal, has vehemently denied any involvement between the exchange and a recent Bloomberg report linking Binance to the launch of World Liberty Financial (WLFI), a crypto project associated with President Donald Trump.
The report, which was released on July 11 and based on anonymous sources, alleged that Binance assisted in developing the smart contract for WLFI’s USD1 stablecoin and promoted the token in a $2 billion transaction. Following the publication of the report, speculation began to circulate on social media, with some accusing Coinbase of being the anonymous source behind the story.
In response to these allegations, Grewal took to X on July 13 to refute the claims, stating, “We absolutely did not contribute to this story. We don’t attack competitors.” He emphasized that Coinbase’s focus is on expanding the broader crypto ecosystem and welcomes others who share that vision.
The controversy was sparked by crypto influencer Matt Wallace, who speculated on X that Coinbase may have supported the Bloomberg report out of fear that a potential US pardon for Binance founder Changpeng Zhao could lead to Binance re-entering the American market. Wallace argued that this potential comeback could pose a threat to Coinbase’s dominant position, especially given its higher trading fees and ongoing customer service criticisms.
Another prominent crypto influencer, Ian Miles Cheong, also suggested that Coinbase could be behind the hit. He wrote on X, “I’d bet that a competitor like Coinbase is behind this. Higher fees, worse platform. They’re trying to take down Binance, and they’re using the Trump angle to do it.”
While Zhao did not directly name Coinbase, he retweeted several posts insinuating that a competitor was responsible for the Bloomberg article and labeled it as “FUD.” Zhao criticized the report, calling it a “hit piece” sponsored by a competitor and highlighting numerous factual errors.
The ongoing controversy between Coinbase and Binance comes amidst a period of heightened scrutiny in the crypto industry, where political affiliations and regulatory outcomes are increasingly influencing market narratives. Both exchanges are competing for market share in a complex landscape shaped by regulatory actions, policy debates, and changing market sentiment.
As the crypto industry continues to evolve, the rivalry between Coinbase and Binance underscores the competitive nature of the market, where strategic maneuvers and political dynamics play a significant role in shaping the future of digital assets.