Coinbase CEO Dismisses Plans to Launch a Token for Base
- Coinbase launched Base in August, and the platform currently has around $500 million in TVL.
- Armstrong urged the crypto community to unite around one or two layer-2 networks rather than each crypto exchange launching their own.
- OKX launched X1, a zero-knowledge layer-2 based on Polygon, in November.
Coinbase CEO Brian Armstrong has confirmed that the exchange has no plans to launch a token for Base, its layer-2 blockchain network. Armstrong’s comments seem to contradict a previous remark from Coinbase Chief Legal Officer Paul Grewal, who hinted that Base could have its token in the future.
However, Armstrong clarified on Friday that Coinbase is pleased with the progress seen on Base and does not plan to include a feature. Coinbase rolled out the service in August, and Armstrong claims the platform has $500 million in TVL (total value locked), making it the third-biggest layer-2 in terms of TVL.
Rather than launch a token, Armstrong noted that Coinbase plans to integrate Base with several applications. The Coinbase CEO explained that Base is designed to serve the broader crypto community and not become a “Coinbase thing.” However, he noted that the layer-2 platform will “have the full backing of Coinbase, which hopefully gives it some sense of stability and trust.”
Layer-2 networks are platforms that help provide scalability for a base layer. These layer-2 platforms can process more transactions at faster rates and at cheaper costs. Despite launching a few months ago, Base has emerged as one of the major competitors in the layer-2 market. Armstrong revealed that Base is part of a large plan to get the average Coinbase transaction “under one second and one cent.”
Most crypto exchanges are following Coinbase’s steps to launch their own layer-2 networks. However, in an exclusive interview with Decrypt, Armstrong urged the crypto industry to unite around one or two layer-2 networks.
It would be probably a mistake if every application had their own L2, so I question a little bit whether it’s necessary. I welcome that other people are exploring it, and generally, we need to get every app on some sort of layer-2, probably.
His comments come weeks after reports emerged that crypto exchange Kraken was planning to launch its Layer-2 network, possibly with assistance from Polygon. Interestingly, crypto exchange OKX announced the launch of X1, a zero-knowledge layer-2 based on Polygon, in November.