Base founder defends Coinbase against criticism over ETH sale

Jesse Pollak, the founder of the Ethereum network Base, has hit back hard at criticism of Coinbase. Parts of the Ethereum community have accused the exchange of selling ETH, but according to Pollak that picture is completely wrong. In fact, Coinbase is the largest non-DAT holder of Ethereum in the world, is building one of the largest Ethereum networks via Base, and has helped millions of users get into ETH. Ethereum currently stands at $2.400, up 0.9% in the past 24 hours.

Key points:

• Jesse Pollak responds to criticism that Coinbase sells ETH and calls it unfounded.
• Coinbase is said to have held around 150,000 ETH for years, through multiple market cycles.
• Pollak warns the Ethereum community that attacking customers is harmful to the ecosystem.

Pollak: Coinbase is actually one of Ethereum’s largest customers

Criticism of Coinbase within the Ethereum community has been simmering for some time, but flared up again recently. Jesse Pollak, who as founder of Base is closely connected to both Coinbase and Ethereum, has now responded openly.

According to Pollak, Coinbase is one of the largest consumers of Ethereum via the Base network, the company has contributed for years to the development of the EVM and the Ethereum roadmap, and it has literally introduced millions of people to ETH. He says it is incomprehensible that the company is being attacked at the same time for allegedly selling ETH.

His response followed a post by Ethereum Foundation member chaskin.eth, who argues that much of the anger within the Ethereum community towards Coinbase is misplaced. Coinbase has contributed to Base, USDC, cbBTC, EIP-4844, ERC-4337 smart wallets and x402, among other things.

150,000 ETH held through multiple market cycles

According to Wu Blockchain, Pollak added that Coinbase has held around 150,000 ETH for years, even during severe market downturns. This makes Coinbase the largest non-DAT holder of ETH, meaning only validated stakers formally own more ETH.

Pollak calls on the Ethereum community to stop moralising at its own customers. Attacking companies and users that deploy the protocol actively only pushes them away, he says. He says he himself values Ethereum and is grateful for the years of collaboration, but describes the current attitude as “wack”.

Coinbase has been in the news before regarding the role of major crypto companies within the Ethereum ecosystem. The discussion also touches on broader questions about how the Ethereum community deals with commercial parties that contribute to the network while pursuing their own interests.