Hi HODLers,
Crypto exchange Coinbase (COIN) launched Base, a layer 2 network built using Optimism's OP Stack. The goal is to provide an easy, relatively secure way for users to navigate through the decentralized finance world.
I personally believe this is a great idea to have a sandbox where some of the dapps might be selected and overseen by Coinbase for its customers who want to venture in this new DeFi and Web3 worlds.
The testnet of Base was started by Coinbase on Thursday.
As Will Robinson, vice president of engineering at Coinbase said:
“Today, we’re excited to announce the testnet launch of Base, an Ethereum layer 2 (L2) network offering a secure, low-cost, developer-friendly way for anyone, anywhere, to build decentralized apps or “dapps” onchain
He added: “We encourage them to start on Base, but go everywhere: we see Base as a “bridge” for users into the cryptoeconomy,” Robinson said. “It’s an easy-to-use default onchain experience with access to products on other chains.”
I can only applaud this.
As you can imagine, more speculation came in to know if Coinbase would issue a coin. So far they have been pretty consistent and answered very clearly:
Coinbase has no plans to issue a new network token.
The goal of Coinbase is to allow developers to directly integrate their product with Base and provide fiat onramps
To do so, it will leverage its impressive networkd of 110 million verified users and $80 billion in assets on the platform in the Coinbase ecosystem.
Optimism $OP Token Price reaction
It gained 16% when thenews came out and gave back a little bit. I believe the price action is not too crazy as this is a big acknowledgement that Coinbase would use Optimism infrastructure and tools to build its own layer.
Coinbase $COIN Stock Price Reaction
Inexistant which is telling at how the institutional financial world has trouble to value all these innovations and to be honest... I do too. I just know that this is a good new for Coinbase and the overall Crypto ecosystem that more users will venture into Layer2s.
Stay safe out there,
Coinbase Original announcement
CoinDesk article