Celo, a number one Layer 1 blockchain, noticed its native token drop 5% after its upcoming transition to an Ethereum Layer-2 community inside Optimism's now “controversial” Superchain ecosystem.
On November 27, Coinbase, the most important US-based cryptocurrency change, introduced that it will not help Celo's migration to a Layer 2 community. In distinction, Paolo Ardoino, CEO of Tether , confirmed the stablecoin issuer's continued help for the community after the transition to the Ethereum ecosystem.
Knowledge from forexcryptozone confirmed that this uncertainty had a unfavourable impression on the community's CELO token, which fell 5% to $0.81039 on the time of publication.
Group response
These divergent views have sparked combined reactions inside the group, with many criticizing Coinbase's determination.
Marek Olszewski, CEO of Celo builders cLabs, expressed disappointment with Coinbase's stance. He questioned whether or not the transfer might deter different Ethereum Digital Machine (EVM)-compatible layer 1 chains from adopting Ethereum's layer 2 scaling options.
In the meantime, Kraken's Inkchain founder Andrew Koller assured that his change would help the migration to an L2. He declared:
“Kraken and Ink (likes) the superchain and are totally dedicated to scaling Ethereum and making Kraken work for Celo customers. We've requested the related groups to discover this to see if we will get every part achieved in time for January sixteenth.
Regardless of the setback, Olszewski recommended that the Celo group might contemplate renaming its current layer 1 chain to “Celo Gold (CGLD)” to accommodate Coinbase's present help framework. He hinted that this might simplify future adoption if Coinbase helps Layer 2 upgrading.
Group urges Coinbase to rethink
EigenLayer founder Sreeram Kannan speculated that Coinbase's determination could have come from an “oversight” slightly than outright opposition. He inspired the change to evaluate its place, highlighting the potential advantages of supporting the combination of Celo into the OP stack.
Kannan mentioned:
“I believe that is in all probability an inner oversight at Coinbase. There isn’t a likelihood that the corporate constructing the Ethereum L2 chief in customers and a main contributor to OP public items will select to cease supporting Celo after it turns into an L2-based OP stack.
However, Nass Eddequiouaq, CEO of Bastion, an a16z-funded crypto startup, highlighted the operational and regulatory complexities that exchanges face when including help for brand spanking new chains, particularly in states -United. He added:
“Exchanges and custodians usually wait to see which leg of the fork picks up exercise earlier than including one help and depreciating the opposite.”
