Coinbase Defends Ethereum Stance
Coinbase Executive Defends ETH Holdings While Highlighting Broad Ethereum Ecosystem Contributions
Key Points
Coinbase's ecosystem contributions extend beyond ETH holdings, with involvement in cbBTC, ERC-4337-based smart wallets, and x402, illustrating broader impact on Ethereum infrastructure alongside Base and USDC.
Chaskin.eth, an Ethereum Foundation member, argued that criticism of Coinbase is misdirected and highlighted Coinbase and its affiliates' contributions to multiple Ethereum projects, including Base, USDC, cbBTC, EIP-4844, ERC-4337-based wallets, and x402.
Some critics have alleged that ETH sales could be tied to Base's sequencer revenue, but Jesse Pollak rejected these claims, emphasizing Coinbase remains the largest non-DAT holder and urging focus on broader ecosystem support rather than treasury movements.
Base launched in 2023 and has since become one of Ethereum's busiest layer-2 networks, with milestones such as Stage 1 decentralization.
Coinbase is pushing back hard against claims it's secretly selling Ethereum. Base creator Jesse Pollak says the exchange holds between 115,000 and 151,000 ETH — making it the largest non-treasury holder by a wide margin — and he's frustrated that critics ignore Coinbase's massive contributions to the Ethereum ecosystem CryptoRank. The debate exposes a growing tension in crypto: whether a company's asset holdings matter more than what it actually builds CryptoNews.
The Accusations: Selling ETH to Fund Base
Some Ethereum insiders have claimed Coinbase is quietly offloading ETH holdings. Their suspicion: the exchange uses the proceeds to fund Base's sequencer — the software that processes transactions on the layer-2 network Cryptopolitan. But Pollak flatly rejects this. He says claiming Coinbase is hostile to ETH while being the biggest non-DAT holder makes no sense HokaNews.
Coinbase's Real Role in Ethereum's Growth
Pollak argues the conversation is backwards. Yes, Coinbase holds ETH. But more importantly, it onboarded millions of users onto Ethereum through its products. Base alone has become one of Ethereum's busiest layer-2 networks since launch in 2023 CryptoNews. Beyond Base, Coinbase built cbBTC, contributed to EIP-4844 upgrades, and helped develop USDC alongside Circle. These moves reshape Ethereum infrastructure far more than treasury size CryptoRank.
Ethereum Foundation Backs Coinbase's Broader Impact
Chaskin.eth, an Ethereum Foundation member, agrees the criticism misses the mark. He points out Coinbase and its sister companies have fingerprints on nearly every major Ethereum initiative: Base, USDC, cbBTC, ERC-4337 smart wallets, and x402 CryptoNews. Attacking a company for not hoarding more ETH while it's actively building infrastructure for millions seems counterproductive, he argues CryptoPolitan.
The Deeper Question: Holdings vs. Real-World Impact
The real debate isn't about ETH inventory. It's about what matters most for Ethereum's future. Does a company's treasury size signal commitment? Or do millions of users onboarded, billions locked in layer-2s, and key infrastructure built matter more? CryptoNews reports Pollak wants the focus shifted away from balance sheet scrutiny toward ecosystem growth. Base's Stage 1 decentralization milestone shows Coinbase is willing to loosen control as the network matures HokaNews. In this view, a company selling small amounts of ETH while building the pipes millions use is far different from a company hoarding coins and doing nothing.
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