- Coinbase CEO Brian Armstrong confirmed the exchange has no plans to issue a native token for its layer-2 scaling network Base, despite earlier comments suggesting otherwise.
- Armstrong said Coinbase is pleased with Base’s growth since launching in August, with $500 million total value locked and 1 million wallets interacting at launch. The focus now is integrating Base with more applications.
- Armstrong explained Base and other layer-2 networks are part of an internal goal to make average Coinbase transactions under 1 second and 1 cent. He welcomes other exchanges launching layer-2s but thinks the industry should consolidate around 1-2 dominant ones.
Coinbase CEO Brian Armstrong has confirmed the crypto exchange has no plans to issue a native token for its layer-2 scaling network Base. This contradicts earlier comments from a Coinbase executive who said a token was not ruled out.
Armstrong Comments on Base Progress
Armstrong said Coinbase is pleased with Base’s growth since launching in August. Within months, it became the third-biggest layer-2 by total value locked with around $500 million. Base also had about 1 million wallets interacting at launch.
Integrating Base With Applications
According to Armstrong, Coinbase is now focused on integrating Base with various applications. Developers have been excited to build on the layer-2 network. Coinbase wants Base to be interoperable with the broader crypto ecosystem, not just a Coinbase product.
One Second, One Cent Goal
Armstrong explained that Base and other layer-2s are part of an internal goal to make average Coinbase transactions under 1 second and 1 cent. This requires improving Base and integrating other fast layer-1s like Solana.
— BlockNews.com (@blocknewsdotcom) December 1, 2023
NEWS: Coinbase CEO confirms no token plans for @BuildOnBase L2 Network.
Instead will integrate #Bitcoin's Lighting Network and other Layer 1's like Solana, reports Decrypt.
Reaction to Other Exchanges Launching Layer-2s
Armstrong said he’s pleasantly surprised to see other exchanges follow suit with layer-2 networks. However, he suggested the industry consolidate around 1-2 dominant layer-2s rather than each app having its own.
Conclusion
While Coinbase had floated the idea of a Base token, Armstrong has now definitively ruled that out. The exchange seems committed to improving Base as part of a broader shift toward ultra-fast and cheap transactions across its platform.
