Coinbase, the popular cryptocurrency exchange, launched the testnet for its Layer 2 blockchain, named “Base,” in February 2023, and ever since, there have been speculations about the exchange launching a token for the L2. However, the recently released roadmap for Base confirms that there are no plans to launch a token for Base. The roadmap, posted on the Coinbase website, clearly states, “Base has no plans to issue a network token.” The L2 blockchain will use ETH as the primary currency to carry out transactions and pay for gas fees. As the L2 approaches a mainnet launch, the Coinbase team is focusing on making the chain more accessible to builders.
Coinbase’s Base will face competition from other L2s already live on the Ethereum mainnet, such as Optimism and Arbitrum, both of which have seen a reasonable level of success, including tokens that are already trading on major exchanges. Polygon and Optimism currently remain the dominant L2s in terms of total value locked.
While there is no reason to doubt Coinbase’s stance in not creating a token, the market and Coinbase’s strategy may change over time, as Arbitrum operated for two years before launching a token. Nevertheless, Coinbase’s Base is still a highly anticipated L2, set to launch in mainnet sometime in 2023.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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