Coinbase Teases Base Token Launch

Inside Base’s Plans for a Native Network Token

Coinbase’s Ethereum layer-two ( L2) network Base, which in the past has been blamed for extracting value from the second largest blockchain, may finally launch its own token, according to a Monday announcement by the cryptocurrency exchange.

Base was launched with no token in 2023 and quickly became the top L2 in the Ethereum ecosystem. Known for being the cheapest and fastest platform, it also began generating a heap of profit for Coinbase and was even described as an extractive network by London-based bank Standard Chartered earlier this year.

“Base, a layer 2 that was developed to address the problem of scalability on Ethereum, is passing all of the profit (fee revenue minus data recording fees) it extracts to Coinbase, its corporate owner,” Standard Chartered stated in a report. “We estimate that GDP [gross domestic product] lost to Base has already reduced ETH’s market cap by $50 billion.”

And now, despite the ambivalent language in the announcement, Base may soon integrate what will likely be a wildly successful token, judging from the network’s performance thus far.

“We’re exploring a Base network token. It could be a great tool for accelerating decentralization and expanding creator and developer growth in the ecosystem,” said Coinbase CEO Brian Armstrong. “To be clear, there are no definitive plans. We’re just updating our philosophy. As of now, we’re exploring it.”