What does Coinbase's latest documentary "Money: The Story of the Founders" talk about?

Original Title: 《'Coin: A Founder's Story' Offers A Meticulous Look At Crypto And The Ups And Downs Involved In The Origins Of Brian Armstrong's Coinbase》

Author: Josh Wilson, Bloomberg

Translation: Guo Qianwen, ChainCatcher

Coin: A Founder's Story is directed by Greg Kohs, a ten-time Emmy Award winner. Like every origin story—whether of a hero or a villain—it begins with Brian Armstrong's childhood and his fascination with computers and the World Wide Web.

This documentary chronicles the journey of Coinbase's IPO, tracing the history of Coinbase and culminating in its IPO on Nasdaq on April 14, 2021. The documentary is detailed and insightful, but the most noteworthy aspect of the climax is actually the unanswered questions.

Before watching the film, it is important to understand who wrote it and who has editorial control over its content (which can be understood as the right to review, set standards, or exercise veto power over the appearance, text, and use of the product). A crucial point, and one that editors need to consider, is that the person who holds editorial rights in film and television should be different from the subject of the content.

Editorial Control

The film is produced by Alldayeveryday, a full-service production company based in New York and Los Angeles. The company has produced entertainment for brands like Nike, Vans, Lyft, Facebook, and Beats, and has made films with American actors Michael Pitt for the fashion brand Rag & Bone and Greta Gerwig for the fashion brand DKNY. Given its production history, it is likely that Coinbase has invested a significant amount in the making of this film, raising questions about the extent of its editorial rights and whether the film is sufficiently fair.

(Coinbase did not respond quickly to comments regarding the funding sources for the project)

Armstrong stated on Twitter that it is important to note that Kohs has editorial control and final cut rights, meaning Armstrong would not have a say in the final product. The question is, if Coinbase indeed funded the project, how much control do they have over the editing?

This is not to say that the film views Coinbase through rose-colored glasses throughout. The film also addresses controversies, such as Coinbase's acquisition of Neutrino and Armstrong's very commercialized attitude towards the "Black Lives Matter" movement. Overall, however, the film maintains a positive view of the cryptocurrency industry and interprets Armstrong's personality.

The documentary primarily focuses on Armstrong's personal business relationships, particularly his relationship with co-founder Fred Ehrsam.

Director Greg Kohs

In contrast to the infamous co-founder stories of Mark Zuckerberg, Ehrsam and Armstrong sought to amicably resolve their differences. When they could not, Ehrsam left to pursue his own path but remained on Coinbase's board. There is even an anecdote—after Ehrsam's departure, Armstrong gifted him more Coinbase shares, which one investor commented was "unprecedented."

Decentralization and the State

Regulatory issues have been an area where Coinbase hopes to openly accept and even strengthen dialogue. Former federal prosecutor Katie Haun also appears in the film; she created the first cryptocurrency task force for the U.S. government, tasked with investigating Bitcoin. Haun is currently a board member of Coinbase and speaks on behalf of the company in the film. She has valuable insights into cryptocurrency investigations and realizes that cryptocurrency is a technology that should not simply be viewed as an illegal means for further crime—this reflects a commendable inclusivity. Haun also believes that blockchain can be used to track criminal activity, mentioning "using cryptocurrency to track criminal activities."

In the film, John Kothanek, a senior director of Coinbase's global intelligence team, also points out that compared to fiat currency, cryptocurrency is actually easier to trace for illegal transactions. SEC Commissioner Hester Pierce also appears in the film, and she remains optimistic about the potential of new technologies and cryptocurrencies.

The concept of cryptocurrency as a "revolutionary human rights tool" also appears in case studies surrounding Nigeria and Belarus, discussing how the inherent financial system allows states to exert overwhelming control to suppress freedom. Harvard economics professor Kenneth Rogoff comments on this issue in the film, stating, "Bitcoin makes me think about the balance between freedom and power."

The film showcases the 2008 financial crisis and narrates how human greed and mistakes have largely led to state-level financial oppression throughout history. Decentralization of finance could address this issue, but it must also be recognized that governments will always have the final say. Regulation should be promoted, not resisted. The film includes segments of Armstrong meeting with various senators in Washington, which may benefit regulation, but the road ahead remains long.

The Neutrino acquisition case provides insight into Armstrong's thought process as a leader; he is calm, willing to admit mistakes, and, more importantly, willing to learn from them. Coinbase acquired Neutrino in March 2019, an algorithmic stablecoin pegged to the dollar but supported by another algorithmic protocol. Shortly after the acquisition, users quickly pointed out that Neutrino was actually run by a notorious hacking team that sold spyware in Saudi Arabia, Sudan, and Venezuela.

Black Lives Matter (BLM)

The film also discusses Armstrong's stance on BLM, which is worth watching. On one hand, he continually promotes his goal of democratizing finance and creating fairness worldwide, but he claims that Coinbase, as a company, will not support political movements like BLM. This movement stems from the historical injustices faced by African Americans, particularly in the U.S., surrounding financial and monetary systems.

Some may feel that this history—refusing to lend to Black individuals, implementing other monetary policies that undermine, belittle, and destroy Black communities—would lead Armstrong to actively associate the company with the movement. After all, the vision of the movement is quite similar to the principles he advocates. However, he instead chooses a less wise approach, issuing a cold public statement even in the face of employee strikes.

Armstrong has signed a donation pledge, and his stance on BLM seems strange and, I think, unreasonable. Even when discussing BLM, his position appears somewhat ambiguous; he states that he agrees with some ideas and goals of BLM. I feel there is a serious disconnect between him and the values of the BLM organization and anti-racism, fairness, and equality. If this were an issue related to child trafficking or some less divisive issue in American society, I wonder if he would hold the same stance.

Conclusion

The film concludes with Coinbase's historic IPO in 2021, with Armstrong seemingly remaining calm, as does co-founder Ehrsam. The film ultimately focuses on their friendship, illustrating how they can maintain their friendship while co-creating the company.

This film is worth watching; it provides a powerful observation of the entire cryptocurrency landscape and is clearly educational. Although the film interviews former employees, particularly after the BLM scandal, it does not present any significant controversies overall and maintains a generally positive tone, even failing to mention or reference any other exchanges outside of Coinbase.

The film also does not provide many opposing or negative viewpoints, except for the muted response from U.S. Senator Elizabeth Warren regarding the question of "whether cryptocurrency is the ultimate answer to the world's financial woes." Given the blows cryptocurrency faced in 2022, this positive attitude seems quite strange, but nonetheless, the film peaks while recounting events from the second quarter of 2021. Armstrong ultimately leaves viewers with a gentle, pragmatic, and very introverted image; he cares about people, his company, and financial history, while hoping to improve his role as CEO.