4 months ago
Celo, a salient Layer-1 blockchain, has seen its autochthonal token dump 5% aft its upcoming modulation to an Ethereum Layer-2 web wrong Optimism’s Superchain ecosystem turned “contentious.”
On Nov. 27, Coinbase, the largest US-based crypto exchange, announced that it would not enactment Celo’s migration into a Layer 2 network. In contrast, Tether’s CEO Paolo Ardoino confirmed the stablecoin issuer’s continued enactment for the web post-transition into the Ethereum ecosystem.
Data from CryptoSlate showed that this uncertainty negatively impacted the network’s CELO token, which fell 5% to $0.81039 astatine property time.
Community reaction
These diverging views sparked mixed reactions wrong the community, with galore criticizing Coinbase’s decision.
Marek Olszewski, CEO of Celo’s developer cLabs, expressed disappointment with Coinbase’s stance. He questioned whether this determination mightiness deter different Ethereum Virtual Machine (EVM)-compatible Layer-1 chains from embracing Ethereum’s Layer-2 scaling solutions.
Meanwhile, the laminitis of Kraken’s Inkchain, Andrew Koller, assured that his speech would enactment the migration into an L2. He stated:
“Kraken and Ink [loves] the superchain and are afloat committed to Ethereum scaling and making Kraken enactment for Celo users. we’ve asked the applicable teams to research this to spot if we tin deed everything successful clip for Jan. 16th.”
Despite the setback, Olszewski suggested the Celo assemblage could see renaming its existing Layer-1 concatenation to “Celo Gold (CGLD)” to accommodate Coinbase’s existent enactment framework. He hinted that this mightiness simplify aboriginal adoption if Coinbase supports the Layer-2 upgrade.
Community urges Coinbase to rethink
EigenLayer laminitis Sreeram Kannan speculated that Coinbase’s determination could stem from “an oversight” alternatively than outright opposition. He encouraged the speech to revisit its stance, emphasizing the imaginable benefits of supporting Celo’s integration into the OP Stack.
Kannan stated:
“I deliberation this is apt an oversight internally successful Coinbase. There is nary accidental the institution gathering the starring Ethereum L2 successful users and a halfway contributor to OP nationalist goods volition take to discontinue supporting Celo aft it becomes an OP stack based L2.”
On the different hand, Nass Eddequiouaq, the CEO of a16z-funded crypto startup Bastion, highlighted the operational and regulatory complexities exchanges look erstwhile adding enactment for caller chains, peculiarly successful the US. He added:
“Exchanges and custodian person usually been waiting to spot which subdivision of the fork picks up the enactment earlier adding enactment for it and deprecating the different one.”
The station Celo’s token drops arsenic Coinbase skips Layer-2 migration support appeared archetypal connected CryptoSlate.
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