Brian Armstrong, the chief executive of the Coinbase crypto exchange, recently disclosed that they do not have any plans of launching a token for Base, its layer-2 network.
During an interview, the CEO said that they were not working on a token, which is a contradiction of an earlier statement from Paul Grewal, the Chief Legal Officer of Coinbase.
No token
Back in September, Grewal had stated that they could consider launching a token at some point in the future.
He had also added that they had not ruled out the idea completely. But, a spokesperson for Coinbase confirmed that they did not have any plans of issuing a token for the Base network.
According to Armstrong, the exchange is pleased with the progress Base has made since it was launched back in August.
He also noted that just a few months after its launch, Base had become the third-biggest layer-2 because of the total-value locked (TVL).
The CEO said that its TVL had climbed to $500 million, which is a good sign. On the day of its launch, the layer-2 solution had a total of 1 million wallets that were already interacting with it.
The progress
He went on to say that they were now integrating it with different applications and that developers were very excited to be able to make use of the layer-2 solution.
A layer-2 network is one that is built on already existing networks, such as Ethereum. These scaling networks are secondary layers that allow them to handle transactions at a much faster pace.
Likewise, they are also able to process transactions at a cheaper rate as compared to the base layer they are built on.
A variety of these networks already exist, some of which have their own native tokens and they are competing for their share in the crypto market.
In just a couple of months, Base has managed to become one of the favorite layer-2 networks among users.
Armstrong said that their goal was to not make Base a Coinbase thing but to allow it to be much broader, highlighting the fact that it is built on top of Ethereum’s Optimism Stack.
He stated that they were trying to accomplish this in a way that would make it interoperable with the crypto community.
He added that since it will have Coinbase’s full backing, it would provide Base with a sense of trust and stability.
The aim
Armstrong said that Base and other layer-2 networks aim to make transactions on Coinbase cheaper and faster.
He added that this would require making improvements to Base and they would also have to make it the default on their platform, as it is not something people do occasionally.
The chief executive said that it was not just applicable to Base. He also noted that about 7% of the transactions that take place on Coinbase are conducted through the layer-2 network.
He said that their goal was to make sure that 99% of the transactions were conducted on the layer-2 solution.