Coinbase CEO denies plans for a Base token, focusing on enhancing its layer-2 network and advocating for industry consolidation.
Coinbase, a leading crypto exchange, has recently made headlines with its CEO Brian Armstrong’s declaration regarding their layer-2 network, Base. Contrary to previous speculations and comments from within the company, Armstrong has firmly stated that Coinbase does not intend to introduce a native token for Base. This statement comes as a surprise to many, considering the earlier hint by Coinbase’s Chief Legal Officer, Paul Grewal, about the possibility of a token launch in the future.
Future Plans
Coinbase’s layer-2 network, Base, has shown remarkable growth since its inception in August. Within just a few months, it has emerged as the third-largest layer-2 network in terms of total value locked (TVL), boasting approximately $500 million. This rapid growth is attributed to the network’s ability to handle transactions faster and at a lower cost compared to the primary Ethereum network. Armstrong expressed satisfaction with Base’s progress, highlighting its initial achievement of attracting about a million wallets. He also shared the company’s ongoing efforts to integrate Base with various applications, underscoring the enthusiasm among developers to explore this layer-2 network.
Armstrong emphasized the goal of making Base not just a Coinbase-centric project but a broader initiative within the crypto community. Built on the Optimism stack atop Ethereum, Base aims for interoperability and collaboration within the crypto sphere. Armstrong believes that with Coinbase’s backing, Base will offer stability and trust to its users. Moreover, he pointed out the importance of integrating other fast transaction solutions like the Lightning Network for Bitcoin and other efficient layer-1 networks such as Solana.
Coinbase’s Goals
A key ambition for Coinbase, as shared by Armstrong, is to enhance transaction speeds and reduce costs. The target is to achieve transaction times of under one second and costs of less than one cent. This ambitious goal necessitates significant advancements in Base and a shift towards making layer-2 solutions the default choice on the platform. Armstrong likened this transition to the internet’s evolution from dial-up to broadband, underscoring its significance in fostering new applications in the crypto domain.
In another interesting revelation, Armstrong expressed optimism about the potential approval of a spot Bitcoin ETF. Despite the lack of inside information, he shared his positive outlook based on public information, hinting at possible approval in the near future. Additionally, Armstrong commented on the trend of other crypto exchanges venturing into their own layer-2 networks. He mentioned Kraken’s exploration in partnership with Polygon and OKX’s announcement of X1, a zero-knowledge layer-2 network. Armstrong welcomed these developments but cautioned against the proliferation of numerous layer-2 networks, advocating instead for a more consolidated approach within the industry.