Coinbase Denies Selling Ethereum Amid Base Network Rumors

In a recent development, a member of the Base team has refuted rumors suggesting that Coinbase, the sole sequencer node on the Base network, has been selling Ethereum (ETH) from its sequencer. The Base team member, Kabir.base.eth, took to Twitter to address these speculations.

Kabir clarified that Coinbase has accumulated over $3 billion worth of ETH, which is more than twice the total amount of ETH earned by Base. He emphasized that both Base and Coinbase will continue to hold ETH and publicly disclose their long-term holdings, which exceed 100,000 ETH and $3 billion combined.

Kabir's comments came in response to claims made by an anonymous observer, Santisa, who alleged that Base has been transferring all sequencer fees to Coinbase since the launch of the network. Santisa also suggested that the sequencer may have sold those ETH.

Coinbase, as the only sequencer node on the Base network, is responsible for ordering transactions in a specified sequence and ultimately confirming them to increase transaction throughput. Coinbase charges fees for this sequencer role, and these fees are collected in ETH.

The Base team member's clarification should help alleviate concerns surrounding the network's sequencer and its handling of ETH. As the Base network continues to grow and evolve, it is essential for stakeholders to stay informed about developments and address any misinformation that may arise.