Take a fresh look at your lifestyle.

Base will not issue tokens, according to Coinbase CEO

During an interview on the Bankless podcast, Coinbase CEO Brian Armstrong offered some details of the second layer blockchain called Base. It is a solution recently launched by the company that supports one of the most important exchanges in the world.

In addition to referring to Base, the executive also spoke of the advances that the company is preparing to offer to the public in the future. But his main focus during the interview was to clarify the nature of this second layer. He expressed that this attached block chain does not have monetization purposes.

Due to the latter, he said that there are no plans for it to have a native token. This second layer was launched last month amid high expectations from the company. The general feeling within the company is that the project will make a significant contribution to the development of the world of cryptocurrencies.

CEO Says Coinbase’s Priority Is To Continue Innovating

For the CEO of Coinbase, serious companies in the sector must overcome the pressure they suffer from all angles. In that sense, he said that, despite all the headwinds, the priority of his crypto firm is to keep innovating.

Despite the regulatory climate and negative headlines, we have to continue to innovate in this sector“, he pointed out. Regarding Base, the executive said that one of the goals that the crypto industry should set is to offer future solutions. By this he refers to the growth of cryptocurrency adoption.

Thus, Base’s task is focused on bringing greater scalability and usability to the industry as new users increase. In line with this, it is highlighted that this layer will allow Ethereum transactions to be executed with a commission of just one cent on the dollar. It should be noted that this chain is one of the most expensive in terms of gas fees.

In this regard, Armstrong’s statement that Base will not bring economic benefits to his company becomes important. With this, he reiterated that the company has no plans to create a native token for that blockchain. Likewise, the CEO of Coinbase asked users for patience and recalled that the second layer is in the testing phase.

Brian Armstrong, CEO of Coinbase.
According to Brian Armstrong, Base is not a monetization tool, so it will not issue any native tokens. Source: Bankless

Base Use Cases

The CEO of this company believes that the initiative will allow Coinbase users to have greater usability advantages. The latter covers various services offered by the cryptocurrency exchange. Among those use cases is lowering fees for coins like USD Coin.

A better experience for games and decentralized finance (DeFi) is also counted at this stage. The multiple applications that are grouped into these two options would allow users to have a better experience. Notably, these advantages would also cover the non-fungible token (NFT) market. All this indicates that Base will be a breakthrough that could mark a before and after for that company based in the United States.

At the same time, the businessman also referred to the firm’s future plans and said that important advances are being made. In addition, he stressed that these works are carried out with the aim of complying with all the norms of the financial regulators of the North American nation. That way, the company would be more focused on doing things the right way than on a full-on race with the competition, he hinted.

These last words from the CEO of Coinbase could be interpreted as a reference to Binance, the largest of the exchanges. The rivalry between these two digital currency trading exchanges is longstanding. However, Changpeng Zhao’s company, due to its rapid rise, is a favorite target of regulators around the world.

Dapps start appearing on Base

Few weeks have passed since Base was announced by the company that Armstrong runs and the advances are already remarkable. A few hours ago, it was learned that some of the most popular decentralized finance protocols will be added to it, including Aave and Uniswap.

These two financial protocols would have full usability in a couple of months, a source assured the CoinDesk portal.

It should not be forgotten that the fact of not having a native token will not prevent Base from working normally in DeFi. This is because this second layer was built using the Ethereum Optimism protocol. For network fees, the blockchain uses ETH, Ethereum’s native token. The chain is designed in such a way that you will not need your own token, as claimed by the CEO of Coinbase.

Comments are closed.