Base not a ‘monetization scheme,’ claims Coinbase CEO Armstrong
- Coinbase CEO Brian Armstrong addressed Base in a recent podcast
- Armstrong confirmed that the layer 2 blockchain has no plans to issue a token
Coinbase CEO Brian Armstrong recently appeared in a podcast hosted by Bankless. In the podcast, Armstrong talked about Base, the Layer 2 blockchain that was recently unveiled by his company. The Coinbase exec also shared his insights on the future of the company and products that the crypto-exchange has in store for the future.
No Base token planned
Speaking about Base, the layer 2 blockchain that was introduced by the crypto-exchange last month, Armstrong claimed that the overall sentiment behind the project is the desire to contribute to the crypto-space by building, rather than just engaging with crypto stakeholders through policy making.
“Despite the regulatory climate, the negative headlines, we have to make sure we’re continuing to innovate in this industry,” he said.
As for Base’s use cases, the Coinbase CEO stated that the aim is to make crypto more scalable and usable as its adoption grows. Additionally, the new blockchain will also be used to bring down the cost of Ethereum transactions to as low as a penny.
Here, it’s worth noting that Armstrong clarified that Base is not meant to generate revenue for the company. In fact, it isn’t a monetization scheme, the exec reiterated. According to the CEO, users should keep their hopes and expectations in check since the blockchain is currently still in its initial phase. Additionally, it’s worth highlighting that Base has no plans to introduce a native token at this point.
As far as Base’s use cases are concerned, Armstrong believes that one possible utilization of the layer 2 blockchain can be making USD Coin payments fee lower. Additionally, it could also be used to make the experience with DeFi gaming and NFTs seamless.
Here, it must be noted that the exchange is working on integrating its NFT platform with its mobile application. Additionally, the platform is currently moving towards a subscription and services model in order to maintain consistent revenue.
A ‘long game’ for Coinbase?
Armstrong also spoke about Coinbase’s long game, with the exec stating that the company is more concerned about doing things the right way, in line with guidelines and regulations. This, rather than coming under pressure from the development and growth of rivals. In some ways, this can be interpreted as a dig at Binance – One of the world’s biggest crypto-exchanges, one that has been a popular regulatory target too.