Celo, a layer-1 blockchain, experienced a 5% drop in its native token after the announcement that it will be migrating to an Ethereum Layer-2 network within Optimism’s Superchain ecosystem. Coinbase, the largest US-based crypto exchange, stated that it would not support Celo’s migration. In contrast, Tether’s CEO Paolo Ardoino confirmed support for the network post-transition.
The uncertainty surrounding this decision negatively impacted Celo’s CELO token, which fell by 5%. Coinbase’s decision received mixed reactions from the community, with some criticizing the exchange for its stance. Celo’s developer cLabs and Kraken’s Inkchain expressed support for the migration, while Celo suggested renaming its layer-1 chain to “Celo Gold (CGLD)” to accommodate Coinbase’s support framework.
Some speculated that Coinbase’s decision could have been due to an oversight rather than outright opposition. However, Bastion CEO Nass Eddequiouaq highlighted the operational and regulatory complexities exchanges face when adding support for new chains.
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<p>The post Major Layer-1 Blockchain Faces Token Dip Amid Uncertainty Over Transition to Ethereum Layer-2 Network first appeared on CoinBuzzFeed.</p>
