Coinbase Ponders Initiating a Cryptocurrency on the Ethereum Blockchain
In a significant development, Coinbase, the leading cryptocurrency exchange, has announced that it is exploring a potential token launch for its Ethereum layer-2 network, Base. This move comes after Base emerged as the largest Ethereum layer-2 network by total value locked on Monday, with a staggering $3.45 billion.
The change in the U.S. administration may have contributed to this decision, as Coinbase seeks to accelerate its joint mission with the introduction of a network token. Notably, other projects like Optimism have also introduced tokens alongside shifts to decentralized governance.
Colin Marlowe, VP of Emerging Partnerships at Amex Digital Labs, is reportedly spearheading the potential token creation for Coinbase's Base network. On Monday, Base facilitated 13 million transactions across 864,000 active addresses, with smart contracts holding $5 billion worth of crypto.
However, it is essential to note that Base does not need a token to function. It uses Ethereum itself for transactions and inherits its security from the underlying protocol. This exploration is in the early phases, with no specifics shared about timing, design, or governance.
Paul Grewal, Coinbase Chief Legal Officer, previously stated that a token could be viable at some point in the future and that it was not something they had ruled out entirely. However, this move contradicts previous statements made by Coinbase CEO Brian Armstrong, who said in late 2023 that the company was not planning to make a token for Base.
The official Coinbase account confirmed the exploration of a network token via a post on Twitter, assuring the community that they are committed to bringing them along and building in the open. Luke Youngblood, a former Coinbase employee and the founder of Moonwell, was surprised to learn about this development, describing the legal team at Coinbase as especially conservative while he was working on staking products.
Base recently held its annual event, Basecamp, on a livestream. Notable attendees included Luke Youngblood, who attended events in Stowe, Vermont, and Idlewild, California. Known for its outdoor recreation and colorful fall foliage, Stowe, Vermont, provided a picturesque backdrop for this significant gathering in the world of crypto.
As Coinbase continues to innovate and explore new opportunities, the potential token launch for Base is a significant step forward in the company's mission to accelerate the adoption of cryptocurrency. Stay tuned for more updates as this story develops.
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