The native token of prominent blockchain Celo has experienced a 5% decrease in value due to the announcement by Coinbase, the largest US-based crypto exchange, that it will not support Celo’s transition to an Ethereum Layer-2 network within Optimism’s Superchain ecosystem. This decision has caused uncertainty and mixed reactions within the crypto community.
While Tether’s CEO Paolo Ardoino confirmed continued support for the network post-transition, other Ethereum Virtual Machine (EVM)-compatible Layer-1 chains may now hesitate to embrace Ethereum’s Layer-2 scaling solutions. Celo’s developer cLabs CEO Marek Olszewski suggested the possibility of renaming the existing Layer-1 chain to “Celo Gold (CGLD)” to simplify adoption if Coinbase eventually supports the Layer-2 upgrade.
Meanwhile, EigenLayer founder Sreeram Kannan speculated that Coinbase’s decision might be an oversight, urging the exchange to reconsider its stance. Kraken’s Inkchain founder Andrew Koller assured support for the migration into an L2, while Bastion CEO Nass Eddequiouaq highlighted the operational and regulatory complexities of adding support for new chains, particularly in the US.
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<p>The post Celo Token Drops 5% After Coinbase Rejects Layer-2 Network Transition, Controversy Looms Amidst Mixed Community Reactions first appeared on CoinBuzzFeed.</p>
