Coinbase CEO Brian Armstrong Refutes the Idea of Base Token In Future

In a recent development, Coinbase CEO Brian Armstrong that crypto exchange Coinbase has no plans to introduce a token for its Layer-2 platform Base. “We’re not planning to make any token for Base,” Armstrong said.

Armstrong Contradicts Coinbase Legal Chief

In a recent statement, Coinbase CEO Brian Armstrong appeared to diverge from an earlier position expressed by Coinbase Chief Legal Officer Paul Grewal. Grewal had previously stated in September that “a token could be viable at some point in the future,” and that they haven’t ruled out the possibility. However, Armstrong clarified that Coinbase currently has “no plans” to issue a token for the Base network.

Armstrong expressed satisfaction with the progress of Base since its launch in August, highlighting its rise to become the third-largest layer-2 platform in terms of total value locked (TVL), boasting around $500 million in TVL. He emphasized the ongoing efforts to integrate Base with various applications and noted the enthusiasm of developers in engaging with the layer-2 solution.

Uplifting the Infrastructure

Armstrong revealed that Base, along with other layer-2 solutions, is integral to an “ambitious” internal stretch goal aimed at achieving an average transaction on Coinbase in “under one second and one cent.” He acknowledged that achieving this target will necessitate enhancements to Base.

Additionally, Armstrong emphasized the strategic shift towards making layer-2 the default option on the Coinbase platform, as opposed to being an occasional choice for users who bridge to layer-2 for specific transactions.

Speaking to crypto publication Decrypt, Armstrong added: “That’s not just with Base. That’s things like integrating the Lightning Network on Bitcoin, it’s integrating other layer-1s that are very fast, like Solana.”

That about 7% of transactions through Coinbase use layer-2, he explained that Coinbase has set itself internal goals to “get that number way up” as part of a “multi-year effort.”

“We need to get it where probably 99% of transactions are happening on layer-2 to get those performance goals of under one cent and one second,” he said.

Likening the shift to layer-2 as being akin to “the internet moving from dialup to broadband,” Armstrong said that “in terms of bringing new applications online I think it’s incredibly important.”

Armstrong added that he’s “pleasantly surprised” to see other crypto exchanges following suit and launching their own layer-2 networks, while suggesting that the industry should consolidate around one or two layer-2 networks.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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