Cryptocurrency exchange Coinbase Crypto exchange announced and launched the testnet for its very own Layer 2 blockchain tech was known Base earlier in February 2023. Since the launch, there have been speculations about the exchange launching a crypto token for the L2, which has now been clarified in the newly released roadmap for Base.
Base Roadmap Mentions No Token
After the launch of Base, cryptocurrency exchange Coinbase Crypto exchange made it known that there were no intends to essentially launch a crypto token for the Layer 2 blockchain tech. Nevertheless, this did not stop the speculations, but with the release of its roadmap, the team appears to have put an abrupt halt to all speculation regarding a token.
The roadmap which was released on Wednesday on the Coinbase Crypto exchange website clearly states that “Base has no intends to make available a network token.” Instead, it will continue to operate like most other Ethereum (ETH) Layer 2 blockchains teck, using Ethereum (ETH) as a way to carry out transactions and pay for gas fees.
As the L2 moves closer toward a mainnet launch, the team is rather focusing on builders on the chain. It is likewise looking toward upgrading Optimism’s Bedrock, likewise as all of the reviews and audits while making sure the testate remains stable.
“We’ve been building towards Mainnet Genesis, the 1st step of delivering a decentralized platform that scales Ethereum (ETH) with fast, low-cost and secure transactions. As we prepare to upgrade from testnet to mainnet, we want to build in the open and keep the community notified of our roadmap and status,” the statement said.
Coinbase Crypto exchange Will Face Fierce Competition In L2 Market
Although while blockchain tech is still not as mainstream as industry participants would like, they are being developed rapidly. As Coinbase Crypto exchange enters the L2 space, it is coming into fierce competition with other L2s that are already live on the mainnet.
The likes of Optimism and Arbitrum have seen a reasonable level of success since their launch, which indicates that Base may be just as successful. Nonetheless, one thing the previous have are crypto tokens that are already trading across major exchanges. As a result, they may continue to see the most interest from investors who are chasing profits from these tokens.
Nevertheless, Base is still a highly anticipated L2 expected to launch in mainnet sometime in 2023. There is no reason to doubt Coinbase’s stance in not creating a crypto token, but this could always change as Arbitrum operated for two years before launching a token.
Arbitrum, Polygon, and Optimism remain the dominant L2s in the space with total value locked of $2.31 billion, $986.88 Million, and $881.1 Million respectively.