Pollak Debunks Accusations of ETH Dumping at Coinbase

Coinbase's Vice President of Engineering, Jesse Pollak, recently engaged with critics on X who accused the exchange of dumping Ethereum (ETH) in favor of other assets.

The argument began when venture investor Nick Tomaino praised Coinbase for its alignment with Ethereum values. However, cyp.eth responded by pointing out that Coinbase earns fees in ETH through its Base execution system and then converts them to USD or BTC, which has led some to accuse the company of constantly selling ETH.

Pollak defended Coinbase's actions, stating that it holds more ETH than any peer except for dedicated digital-asset-treasury vehicles by an 'order of magnitude.' He also noted that Coinbase had held 150,000 ETH for years and that its numbers are consistent with the Strategic ETH Reserve tracker.

Pollak argued that the criticism is 'badly misplaced' and that Coinbase's actions are part of a broader effort to support the Ethereum ecosystem. He highlighted the company's role in shipping EIP-4844, which reduced layer-2 costs, and its contribution to the creation of USDC, one of the largest stablecoins.