Coinbase Faces Backlash Over Decision Not to Support Celo’s Migration to Ethereum Layer-2
Digital asset exchange Coinbase is facing criticism for its recent announcement that it will not support Celo’s upcoming migration from a standalone layer-1 chain to an Ethereum layer-2. The decision has sparked controversy within the crypto community, with multiple Celo executives expressing their disappointment.
Celo Foundation president Rene Reinsberg and Marek Olszewski, the CEO of Celo developer cLabs, have publicly criticized Coinbase’s stance, with Olszewski stating that the announcement feels like a setback for Ethereum’s layer-2-centric scaling roadmap. However, Coinbase has clarified its position, stating that it plans to reevaluate Celo’s layer-2 solution after the technical migration is complete.
In response to the accusations that it does not support Ethereum’s scalability, Coinbase emphasized its commitment to being a bridge to the cryptoeconomy and expressed support for both layer-1 and layer-2 solutions. The exchange has instructed its customers to withdraw any CELO from their accounts by January 13th, ahead of the project’s scheduled migration to a layer-2 solution on January 16th.
Celo has highlighted the technical benefits of the migration, including native bridging between Celo and Ethereum, which enhances the security of token transfers by reducing reliance on external bridges. This advancement aims to provide a more secure and streamlined experience for users, ensuring the safety and reliability of transactions within the ecosystem.
The Celo project launched a layer-2 testnet in July, paving the way for the upcoming migration. As the crypto community awaits the outcome of Coinbase’s reevaluation of Celo’s layer-2 solution, the debate over Ethereum’s scaling roadmap continues to unfold.
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