Coinbase’s Brian Armstrong Rejects Base Token Launch Proposal

YEREVAN (CoinChapter.com) — Coinbase exchange CEO Brian Armstrong said a Base token is not in the books for its Ethereum Layer-2 network, Base. This decision marks a strategic shift in cryptocurrency, emphasizing development over monetization. During an interview, Armstrong was certain: “We’re not planning to make any token for Base.” This statement contradicts earlier speculation of a potential token tied to the network. His remarks align with Coinbase’s broader vision of fostering an “inclusive and interoperable” crypto ecosystem.

Armstrong’s Base Token Stance Final?

The launch of Base, built on the Optimism stack on Ethereum, was met with significant success. Armstrong proudly noted the network’s rapid ascent to becoming the third-largest Layer-2 network regarding total value locked (TVL), boasting about $500 million in TVL and a million wallets actively engaging with the chain.

However, as of Dec. 1, Base’s TVL stood at just under $300 million, albeit with leading protocols boasting double-digit monthly gains.

Reasons Behind the Decision

Armstrong’s decision to forego a Base token is rooted in a desire to prioritize the network’s technological advancement and widespread adoption. He emphasized that Base is not a revenue-generating venture for Coinbase but a contribution to the crypto community’s growth.

By eschewing a native token, Base aims to reduce Ethereum transaction costs significantly, making cryptocurrency more scalable and user-friendly as its adoption soars.

The Coinbase CEO also highlighted the importance of Base being more than just a company project. “We’re trying to do it in a way that’s interoperable with the rest of the crypto community,” Armstrong stated, indicating a commitment to collaboration and integration within the broader crypto ecosystem.

This approach and Coinbase’s backing are intended to provide “stability and trust” to Base users. Armstrong Base token forego sets a precedent for future developments in the industry, highlighting the importance of building over profit. However, the decision could also be connected to Coinbase’s efforts to avoid more trouble with the regulators.