Celo’s token drops as Coinbase skips Layer-2 migration support

Celo, a outstanding Layer-1 blockchain, has seen its personal token dumped by 5% after the upcoming transition to an Ethereum Layer-2 community inside Optimism’s Superchain ecosystem grew to become ‘controversial’.

On November 27, Coinbase, the most important US-based crypto alternate, introduced that it might not assist Celo’s migration to a Layer 2 community. Tether CEO Paolo Ardoino, then again, confirmed the stablecoin issuer’s continued assist for the community following the transition to the Ethereum ecosystem.

Knowledge from CryptoSlate confirmed that this uncertainty negatively impacted the community’s CELO token, which fell 5% to $0.81039 at time of printing.

Neighborhood response

These differing views led to combined reactions inside the group, with many criticizing Coinbase’s choice.

Marek Olszewski, CEO of Celo’s developer labs, expressed disappointment with Coinbase’s place. He questioned whether or not this choice may deter different Ethereum Digital Machine (EVM)-compatible Layer-1 chains from embracing Ethereum’s Layer-2 scaling options.

In the meantime, Kraken’s Inkchain founder Andrew Koller assured that his alternate would assist the migration to an L2. He declared:

“Cracking and ink [loves] the superchain and are totally dedicated to scaling Ethereum and making Kraken work for Celo customers. we now have requested the related groups to analyze this to see if we are able to obtain the whole lot in time for January 16.”

Regardless of the setback, Olszewski suggested the Celo group could think about renaming the prevailing Layer-1 chain to “Celo Gold (CGLD)” to accommodate Coinbase’s present assist framework. He hinted that this might simplify future adoption if Coinbase helps the Layer-2 improve.

The group urges Coinbase to assume once more

EigenLayer founder Sreeram Kannan speculated that Coinbase’s choice may stem from “a mistake” fairly than outright opposition. He inspired the alternate to rethink its place, highlighting the potential advantages of supporting Celo’s integration into the OP Stack.

Kannan said:

“I feel that is in all probability an inner mistake at Coinbase. There isn’t a probability that the corporate will construct the main Ethereum L2 in customers and a significant contributor to OP’s public items will select to cease supporting Celo after it turns into an OP stack-based L2.”

Then again, Nass Eddequiouaq, the CEO of 16z-funded crypto startup Bastion, highlighted the operational and regulatory complexities exchanges face when including assist for brand new chains, particularly within the US. He added:

“Exchanges and maintainers have principally waited to see which department of the fork picks up the exercise earlier than including assist for it and deprecating the opposite.”

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