Coinbase Pushes Back Against Criticism Over Massive ETH Holdings
Coinbase has pushed back against criticism from the Ethereum community regarding its ETH holdings. According to the exchange, it holds between 115,000 and 151,000 ETH, making it the largest non-DAT holder by a wide margin, worth around $300 million. This amount is significant as it represents a substantial portion of the Ethereum supply.
Coinbase executive Jesse Pollak emphasized that the company's holdings are tied to operational revenue from its Base layer-2 network sequencer. He also highlighted Coinbase's contributions to Ethereum, including key upgrades and stablecoin creation. Pollak assured that Coinbase maintains a strong commitment to Ethereum's ecosystem and user onboarding.
However, some critics have pointed out that selling ETH could impact the Ethereum price and undermine its adoption as a store of value. Despite this criticism, Pollak remains committed to Coinbase's role in supporting the Ethereum community.