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Coinbase CEO Brian Armstrong: No Plans for Token in Base Layer-2 Network

In a recent exclusive interview with Decrypt, Coinbase CEO Brian Armstrong dispelled rumors regarding the issuance of a token for the exchange’s layer-2 network, Base. This statement stands in contrast to earlier suggestions by Coinbase’s Chief Legal Officer, Paul Grewal, hinting at the viability of a token for Base in the future.

Armstrong clarified Coinbase’s stance, affirming, “We’re not planning to make any token for Base,” emphasizing the exchange’s contentment with Base’s evolution since its launch in August. He highlighted its rapid rise to becoming the third-largest layer-2 network in terms of total value locked (TVL), boasting about $500 million TVL and a million initial wallets interacting within its ecosystem.

Coinbase CEO Brian Armstrong

Acknowledging the significance of Base’s integration with diverse applications, Armstrong expressed enthusiasm among developers, highlighting their eagerness to engage with the layer-2 network. He also admitted that 7% of Coinbase transactions currently utilize layer-2 solutions, including Base, with plans to significantly increase this percentage. This includes collaborative efforts with other blockchain ecosystems like Solana to facilitate rapid and cost-effective transactions.

The CEO stressed the importance of widespread adoption of layer-2 solutions, aiming for approximately 99% of transactions to occur on these secondary layers to achieve ambitious performance goals—transactions under one cent and within one second.

Layer-2 networks, built atop existing blockchains like Ethereum, offer accelerated transaction speeds and reduced costs compared to their base layers. Among these networks, Base has swiftly gained popularity among users within a short span.

Armstrong emphasized Coinbase’s intention for Base to be an inclusive network beyond its own confines, emphasizing its foundation on the Optimism stack on Ethereum and aiming for interoperability with the broader crypto community. He assured that despite this openness, Coinbase’s full support will provide Base with stability and trust.

Expressing surprise at the emergence of layer-2 networks from other crypto exchanges, Armstrong hinted at potential consolidation within the industry around one or two primary layer-2 networks.

The interview comes in the wake of reports suggesting competitors like Kraken and OKX exploring their own layer-2 solutions, showcasing the intensifying competition within the crypto exchange sphere and the growing emphasis on efficient transactional infrastructure.

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