Coinbase’s own crypto network won’t get its own token: smart move?

Coinbase launched its own blockchain called Base earlier this year revealed. The Layer 2 network is despite some initial difficulties became very popular in a short time, But there is one noticeable difference from other projects: there is no token. However, the company has no plans to change this.

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Coinbase is not planning its own altcoin

Brian Armstrong, CEO of Coinbase, explained this in an interview with Decrypt. Remarkably, it’s exactly the opposite of what Paul Grewal, Coinbase’s chief legal officer, told Crypto Newspaper in September. Grewal did not rule out the possibility that the company would launch its own token at some point in the future.

However, according to Armstrong, there is currently no plan for such a token and a company spokesperson confirmed this. According to the CEO, the crypto exchange is very happy with the development of the network since its launch in August. In just a few months, it was already the third largest Layer 2 blockchain. At times it was even significantly larger than its two larger competitors, Optimism (OP) and Arbitrum (ARB).

Big plans for the Base blockchain

“The (network) already has a (Total Value Locked, TVL) of about 500 million, which is very good,” the CEO said. At launch, around a million wallet addresses were already interacting with the network. The goal of the Layer 2 chain is to make Ethereum (ETH) more scalable, and Coinbase has big ambitions in this regard.

To encourage adoption, the crypto exchange aims to reduce transaction costs to 1 dollar cent and increase speed to less than 1 second per transaction. Approximately 7% of all transactions on Coinbase currently use Layer 2 technologies. Armstrong wants this part to be much larger, which would take several years.

Base must be able to do more in the future than before. Armstrong wants Base to also add support for blockchains like Solana. He compares the transition from Layer 1 blockchains to Layer 2 to that of dial-up in the early stages of the Internet to broadband. Now it’s up to the developers to create applications for the network – the enthusiasm among the developers is already noticeable.

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