Celo, a distinguished Layer 1 blockchain, suffered a 5% native token dump after its upcoming transition to the Ethereum Layer 2 community throughout the Optimism Superchain ecosystem turned “controversial.”

On November 27, Coinbase, the biggest US-based cryptocurrency alternate, introduced that it will not help Celo's migration to a Layer 2 community. In distinction, Tether CEO Paolo Ardoino acknowledged the stablecoin issuer's continued help for the community following its transition to the Ethereum ecosystem.

knowledge from crypto slate This uncertainty negatively affected the community's CELO token, which confirmed a 5% drop to $.0.81039 at press time.

Neighborhood response

These disagreements sparked combined reactions throughout the neighborhood, with many criticizing Coinbase's determination.

Marek Olszewski, CEO of cLabs, the developer of Celo, expressed disappointment with Coinbase's stance. He questioned whether or not this determination would stop different Ethereum Digital Machine (EVM)-compatible Layer 1 chains from adopting Ethereum's Layer 2 scaling resolution.

In the meantime, Kraken inkchain founder Andrew Koller assured that his alternate will help the transition to L2. He mentioned:

“Kraken and Ink (I like it) We help Superchain and are totally dedicated to scaling Ethereum and making Kraken work for Celo customers. We’ve requested the related groups to look into this to see if we are able to accomplish every little thing in time for January sixteenth. ”

Regardless of the setback, Olszewski mentioned the Celo neighborhood could take into account renaming the prevailing layer 1 chain to “Celo Gold (CGLD)” to accommodate Coinbase's present help framework. advised that there’s. He advised that if Coinbase helps layer 2 upgrades, this might simplify future deployments.

Neighborhood urges Coinbase to rethink

Eigenlayer founder Sreeram Kannan speculated that Coinbase's determination could possibly be as a result of an “oversight” somewhat than an outright opposition. He highlighted the potential advantages of supporting Celo integration into the OP stack and inspired exchanges to rethink their place.

Kannan mentioned:

“I believe that is seemingly an oversight inside Coinbase. The corporate, which is the main Ethereum L2 builder by variety of customers and a core contributor to the OP public good, is There isn’t any likelihood that you’ll select to discontinue help for Celo when you develop into an OP stack.”

In the meantime, Nas Edekioak, CEO of Bastion, a crypto startup backed by a16z, highlighted the operational and regulatory complexities exchanges face when including help for brand new chains, particularly within the US. He added:

“Exchanges and directors usually wait to see which department of a fork selects that exercise earlier than including help for that exercise and deprecating the opposite department.”

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