Coinbase faces crypto backlash over sponsoring military parade in D.C.
As the first large-scale military parade in decades made its way down the streets of Washington, DC on Saturday, organizers gave thanks to the country’s men and women in uniform—and also to various corporate sponsors, including the giant crypto exchange Coinbase. Not everyone was comfortable with the spectacle of the crypto industry—which was founded in opposition to government power—being so closely aligned with a display of force by the U.S.
Coinbase was one of a slew of corporations that sponsored the parade, according to a statement from America250, the official body organizing the events to honor the 250th anniversary of the U.S. Other corporate sponsors included data firm Palantir, aerospace giant Lockheed Martin, and household names like Walmart, Coca-Cola and Chrysler.
Kara Calvert, Coinbase’s vice president of U.S. policy, represented the company at the parade.
“It was an absolute personal honor to attend the 250th celebration of the @USArmy with my son and mom,” Calvert said in a post on X. “I was also honored to represent @coinbase at the event, a proud sponsor of @America250.”
While some saw the sponsorship as a way to bring awareness to crypto, others saw it as a major break from the industry’s ethos as a financial system independent from a centralized entity.
“What Coinbase did by sponsoring this army parade feels like an insult to everything our industry stands for,” one user wrote on X. “Crypto emerged from ideals of decentralization, individual sovereignty, and freedom from oppressive state control.”
Adam Cochran, managing partner at blockchain venture capital firm Cinneamhain Ventures, said that as a result of the sponsorship, he would sell his shares in the company and withdraw his crypto assets from the platform, in a post on X.
Cochran pointed out that the sponsorship went against Coinbase’s policy on political causes. “We don’t advocate for any particular causes or candidates internally that are unrelated to our mission, because it is a distraction from our mission,” the company says on its website.
“Sponsoring a military parade, in a divided country, with already split views of crypto isn’t true to this policy,” Cochran said. “It’s just bad marketing that hurts this industry’s adoption.”
It is unclear how much money Coinbase spent on the sponsorship or if any top-level executives, like CEO Brian Armstrong, were in attendance. A spokesperson for Coinbase declined to comment when contacted by Fortune.
However, some people argued that the military is an apolitical institution and therefore, Coinbase’s sponsorship of the event is not an endorsement of any political party.
“$COIN supporting our military in no way implicates their political affiliation,” one user wrote in response to Cochran’s post. “Military should always be apolitical for the good of the nation.”
Despite the criticism, Coinbase shares are up 5% since the market opened on Monday, growing from $248 to $256.
This story was originally featured on Fortune.com