Coinbase's Large ETH Holdings Undercut Selling Claims

A recent accusation that Coinbase is quietly selling Ethereum (ETH) has sparked a debate within the Ethereum community, but Base creator Jesse Pollak disputes this claim. According to Pollak, Coinbase holds more ETH than any non-DAT holder by an order of magnitude.

Pollak argues that Coinbase's incentives align with preserving ETH value for Layer 2 adoption and broader crypto ecosystem growth. He points out that the exchange has built a significant infrastructure on Ethereum, including Base, USDC, cbBTC, EIP-4844, ERC-4337 smart wallets, and x402.

Pollak's defense of Coinbase suggests that owning such a large amount of ETH provides strong reasons not to undermine its market value. He warns that 'hating your customers' is a good way to make them no longer want to be customers, implying that Coinbase's actions are motivated by self-interest rather than malicious intent.