The layer 2 network of Coinbase, base, denied the allegations for the sale of its Ethereum (ETH) assets.
During the weekend, members of the Crypto community stressed that the base had channeled sequencer costs to Coinbase, arousing concerns about transparency and potential sales of ETH.
However, the basic strategist Kabir Sadarangani refuted these affirmations, saying that the accusations of lack of transparency and potential sales of ETH were unfounded.
Allegations
On February 8, Santisa, the IOC of the investment company, Lucidity Cap, raised the alarm that the base sent all the sequencer costs to Coinbase since its launch.
He added:
“We do not know if they have sold, but we know that they have not deployed these funds on the basis or keep them in chain. The lack of transparency just makes them assume that they have sold. Not very aligned by Ethereum. »»
A more in -depth analysis of Sonic, the assistant, stressed that the network sequencer operations generate almost a beneficiary margin of 90% – more than $ 100 million – and all ETH linked was sent to Ethereum then in Coinbase.
Coinbase financial reports were confusing, adding more to speculation. The assistant noted that before the launch of the base, Coinbase held around 118,924 ETH ($ 230 million at $ 1,934 per ETH) on June 30, 2023. The fourth quarter 2024, this figure had only increased slightly At 119,696 ETH, which means that Coinbase added only 772 ETH ($ 2 2 ($ 2. Million at current prices) during the base operational period.
The assistant also highlighted a recent transaction where 240.35 ETH ($ 618,960) were moved outside the Coinbase chain. This has aroused questions about the fate of the remaining $ 100 million in ETH generated by the sequencer.
Meanwhile, Andre Cronje, the co-founder of Sonic Labs (formerly Fantom), also criticized the basic approach. He wondered if the platform operates as a centralized corporate blockchain under Coinbase or as a layer of layer 2 truly aligned by Ethereum.
Cronje has also challenged the team’s decision to maintain the costs out of chain rather than maintaining them transparently on Ethereum.
Coinbase addressed concerns
In response, Sadarangani defended basic financial practices, declaring that his income is reinvested in the Ethereum ecosystem rather than liquidated.
He stressed that Coinbase and the base collectively hold more than 100,000 ETH, making them the biggest holders of ETH public companies and exceeding any DAO or development entity.
Responding to concerns about transparency, he explained that the base uses custody outside the chain on Coinbase for safety and audit purposes.
It has deepened that the eTH generated is used for operations and subsidies rather than liquidation. Base aims to transform more costs covered in ETH while increasing activity on the chain.
Sadarangani said:
“We win and spend as much as possible in ETH. We spend the ETH on L1 costs, we name all our external subsidies in the ETH, our goal is to continue to move more basic costs to operate in ETH, and we work hard to move more from our operations .
He also said that all ETH converted into USD is minimal compared to its overall assets and the wider Ethereum market. According to him, the base remains attached to the growth of long -term ecosystems rather than short -term financial gains.
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