The Layer-2 network of Coinbase, Base, has refused accusations of the sale of its Ethereum (ETH) Holdings.
During the weekend, Crypto Community members pointed out that Base Sequencer fees have led to Coinbase, resulting in concern about transparency and potential ETH sale.
Basic strategist Kabir Sadarangani, however refuted These claims claim that the accusations of a lack of transparency and potential ETH sales were unfounded.
The allegations
On 8 February, Santisa, the CIO of investment firm Lucidity Cap, raised the alarm that the basis has sent all sequencer costs to Coinbase since the launch.
He added:
“We don’t know if they have sold, but we do know that they did not use those funds on the base whether they have kept the chain. The lack of transparency makes it reasonable to assume that they have sold. Not very ethereum-released from them. ‘
Further analysis by Sonic de Assistant noted That the Sequencer activities of the network almost generate a profit margin of 90% – more than $ 100 million – and all related ETH was sent from base to Ethereum and then to Coinbase.
The financial reports from Coinbase were enigmatic, which further contributed to the speculation. The assistant noted that Coinbase had approximately 118,924 ETH before the launch of Base ($ 230 million at $ 1,934 per ETH) per ETH from 30 June 2023. At Q4 2024 this figure was only slightly increased to 119,696 ETH, which means that that means that that that means that that that is Coinbase that Only 772 ETH ($ 2 was added ($ 2 ($ 2 million at current prices) during the operational period of the base.
The assistant also emphasized a recent transaction in which 240.35 ETH ($ 618,960) off-chain was moved to Coinbase. This led to questions about the stay of the remaining $ 100 million in ETH generated by Sequencer.
Meanwhile, Andre Cronje, the co-founder of Sonic Labs (formerly Fantom), too criticized Basic approach. He wondered if the platform works like a centralized business blockchain under Coinbase or as a real Ethereum-Uitgegdgelded Layer-2 network.
Cronje also disputed the team’s decision to keep the costs out of the chain instead of being transparent on Ethereum.
Coinbase address care
In response, Sadarangani defended the financial practices of BASE, which states that his income is reinvested in the Ethereum ecosystem instead of liquidated.
He pointed out that Coinbase and Base Collective have more than 100,000 ETH, making them the biggest holders of ETH of the Public Company and surpass every Layer-2 DAO or Development Intity.
He focuses on the concern about transparency and explained that BASE uses custody outside the chain on Coinbase for security and audit purposes.
He continued that the generated ETH is used for operations and subsidies instead of liquidation. Basic strives to switch more costs to be covered in ETH and at the same time increase the activity on the chain.
Sadarangani said:
“We earn and spend as much as possible in ETH. We spend ETH on L1 costs, we am all our external subsidies in ETH, our goal is to continue to move more of the costs of base to function in ETH, and we work hard to move more of our activities.
He also clarified that every ETH that is converted into USD is minimal compared to the total companies and the wider Ethereum market. According to him, the basis remains committed to long -term ecosystem growth rather than financial profit in the short term.
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