Coinbase CEO Brian Armstrong, one of crypto's richest leaders, is taking an unusual approach to philanthropy. Despite a fortune that Bloomberg has tracked at around $9 billion this year, Armstrong says he has no plans to establish a traditional charitable foundation, arguing that some large philanthropic organisations can ultimately do more harm than good.
Brian Armstrong takes a contrarian view on philanthropy
Armstrong, the co-founder and CEO of Coinbase, discussed his views on the Katie Miller Podcast, describing his position as a “contrarian view.”
“A lot of charities and philanthropies are actually net negative on the world,” Armstrong said. He argued that charitable institutions can become influenced by ideological interests over time, potentially moving away from the intentions of the people who originally created or funded them.
“They get captured. It's actually remarkably hard to find a foundation that has not gotten captured by ideology.” The comments offer a glimpse into how Armstrong plans to approach giving as his wealth continues to grow.
Why Armstrong does not want a foundation
Armstrong said financial advisers encouraged him to create a charitable foundation after Coinbase went public.
“You get all these financial advisors around you and they're often, for various tax reasons, are like 'OK, we should set up this foundation for you.' And so far, I've just been like 'no, I'm not going to do that,' because my fear is it just gets captured by some ideology that I lose control of it.”
His concern is less about donating money and more about creating a permanent institution that could eventually operate differently from its founder's original intentions.
Armstrong pointed to the Ford Foundation as an example, saying he believed Henry Ford “would be turning over in his grave if he knew what they were up to.”
Armstrong says he still gives to causes he believes in
Armstrong's decision not to establish a foundation does not mean he has rejected philanthropy altogether.
He said he uses a donor-advised fund to support causes he believes can “advance civilisation.” He also left the door open to changing his mind, saying he would never say never to creating a foundation.
His approach also includes backing projects outside traditional charitable giving. Coinbase is sponsoring the annual championship of the mobile strategy game The Battle for Polytopia. Tournament prize pools had previously been as low as €25, while the current prize pool appears to be $10,000.
Armstrong questions the motives behind billionaire philanthropy
During the discussion, Armstrong also questioned why some wealthy individuals turn toward philanthropy, mentioning Bill Gates by name.
“Bill Gates after the DOJ thing is like, 'I'm going to go rehabilitate my image, I'm going to do philanthropy.'”
That is Armstrong's characterization of Gates's motives, rather than an established account of why Gates pursued philanthropy. Gates has not responded to the claim.
The antitrust case Armstrong referenced dates back decades. The U.S. Department of Justice filed its Microsoft antitrust case in 1998, and the case was ultimately settled in 2001.
