Coinbase's ETH Holdings Undercut Selling Claims, Says Base Creator Jesse Pollak

Accusations have been made that Coinbase is quietly selling Ethereum (ETH) on its exchange, but Base creator Jesse Pollak says this claim is misinformed. According to Pollak, Coinbase holds more ETH than any other non-DAT holder by an order of magnitude.

This means that the company has a strong economic incentive to keep Ethereum's market value stable, as it relies heavily on the asset for its own business operations. Base, a Layer 2 scaling solution developed by Coinbase, generates demand for ETH as gas, making it essential for the exchange's revenue stream.

Pollak's defense of Coinbase's position is not without merit, given the company's significant contributions to Ethereum's development and growth. By building infrastructure such as USDC, cbBTC, EIP-4844, ERC-4337 smart wallets, and x402, Coinbase has shown its commitment to the Ethereum ecosystem.

Pollak warns that 'hating your customers' is a recipe for losing their business, suggesting that accusations against Coinbase may ultimately harm its relationships with the community it serves.