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Coinbase is the largest cryptocurrency marketplace in the United States. It has also entered the world of prediction markets.
Some World Cup bettors were in for a rude surprise on Sunday, when an AI-generated notification from cryptocurrency exchange Coinbase shared fake breaking news about Norway’s 3-2 win in a knockout match against Brazil. The artificial intelligence said that Norwegian player Erling Haaland scored two goals to achieve the victory.
Kicker? The match had not started yet. It was postponed due to inclement weather at MetLife Stadium in New Jersey. At the time, Coinbase’s official prediction market page showed that the game had been delayed.
Hours later, once the match was actually over, the result was a little different. Norway won, Haaland scored twice, but the final score was only 2-1. For some bettors, this is enough of a difference to deposit a large sum of money – at the same time Gambling addiction rates are rising among young peopleThanks Wide spread of online prediction markets and sportsbooks.
Read more: Stream all World Cup qualifiers for free with a VPN
Coinbase is the largest public marketplace in the US for trading cryptocurrencies like Bitcoin and Ethereum, but it has expanded its ventures to include stock and derivatives trading. Recently, the company entered into a partnership With everything To start offering prediction markets.
Screenshots of inaccurate Coinbase AI news have flooded social media Some critics He pointed out that publishing false results is “dangerous and irresponsible.” In response to one criticism of the Coinbase AI bug shared on X, the company’s CEO, Brian Armstrong, said, He claimed it was “Have a look with the team.”
When reached for comment, Coinbase Marked with X post Written by the company’s head of consumer products, Max Bransborg.
Bransborg’s response to X’s post criticizing the AI model error noted that the company fixed the incorrect World Cup story and “made some updates to avoid these types of errors in the future.”
Norwegian player Erling Haaland ended up scoring twice during the knockout match against Brazil – but this in no way means that Coinbase’s AI model can accurately predict the outcome of future events. Including the win over Brazil, Haaland has scored twice in three of Norway’s four matches so far at this year’s World Cup.
“And lo and behold – it turns out that Norway actually won and Haaland scored twice, so maybe the AI knew something we didn’t know.” Branzburg wrote in the post.
AI didn’t “know” anything. Large linguistic models — Technology commonly referred to as artificial intelligence — I can’t actually know or He predicts The outcome of future events. These machines have no more cognitive ability than you or me.
LLMs are trained to collect large amounts of data and attempt to establish relevant information or identify patterns based on the queries presented. This technique often leads to slurs called “Hallucinations“While a chatbot will produce inaccurate answers that have no basis in reality, based solely on pattern matching on existing data. When faced with a question without an actual answer — the end result of the game never happened — an LLM will often invent something that seems likely.
In this case, it was entirely plausible that the match would have ended with a 3-2 win for Norway with two goals from Haaland – that is a reasonable footballing result, and Haaland is Norway’s top scorer and one of the best scorers in the tournament.
It is unclear whether this incident will cause Coinbase to pause and rethink its AI integration strategies. In June, the company launched Coinbase feature for proxiesallowing users to allow an AI agent to carry out financial transactions within specific accounts and spending limits.
