On February 10th, in a recent statement, a member of the Base team addressed allegations regarding Coinbase liquidating Ethereum. According to Kabir.base.eth, a representative from Base, “Coinbase currently holds more than $3 billion worth of ETH, which significantly exceeds the total ETH earnings for Base.” He confirmed that both Base and Coinbase remain committed to retaining their Ethereum holdings, which surpass 100,000 ETH in total value. Furthermore, Kabir highlighted the importance of off-chain custody arrangements for enhanced security and compliance, noting that the movement of funds to Coinbase was a strategic decision rooted in these practices.
These remarks were in response to comments made by an anonymous figure, Santisa, suggesting that Base has been diverting all sequencer fees to Coinbase since its inception, implying the potential sale of ETH holdings. Notably, Coinbase acts as the sole sequencer for Base, tasked with the crucial function of sequencing transactions, thereby enhancing the overall transaction throughput on the platform. This process involves charging fees in ETH, further intertwining the operational logistics of both entities in the evolving landscape of decentralized finance.