• Thu. Nov 28th, 2024

Coinbase Faces Backlash Over Rejection of Celo s Layer 2 Migration; Token Price Falls

Nov 28, 2024

Coinbase has announced that it will not support the migration of the Celo blockchain from Layer 1 to Layer 2 on the Optimism Superchain, scheduled for January 16, 2025.

Customers holding Celo (CGLD) on Coinbase must withdraw their funds by January 13, 2025, to prevent them from becoming inaccessible.

This decision has sparked backlash among stakeholders and the Celo community, who view it as a setback to Ethereum's Layer 2 scaling roadmap and "extremely bad business" for Coinbase. Critics argue that Coinbase's refusal undermines efforts to scale Ethereum and expand network effects, especially given Celo's role in banking the unbanked in Africa and its network of stablecoin integrations across the developed world. Some believe the issue may be due to internal communication and hope that Coinbase will reverse its stance. The announcement has led to a drop in Celo's token price.

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[Source: TheDefiant]

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