Coinbase Blocks Celo's Layer 2 Upgrade Amid User Access Concerns
Celo's ambitious plan to transition from a Layer 1 blockchain to a Layer 2 solution on Ethereum has hit a major roadblock. Coinbase, one of the largest cryptocurrency exchanges, has announced that it will not support Celo's upgrade, citing concerns about user access to their assets.
The migration involves a hard fork scheduled for January 16, 2025, which will cease block production on the Celo L1 network, making funds inaccessible on Coinbase. Users have been advised to withdraw their CGLD (Celo L1) tokens by January 13, 2025, or risk losing access.
Crypto community leaders are divided over Coinbase's decision. Marek Olszewski, co-founder of Celo, expressed disappointment and questioned whether other EVM-compatible Layer 1 networks might reconsider similar transitions due to resistance from influential exchanges.