Coinbase made an announcement at Basecamp that the Base Layer 2 blockchain is exploring a community token. And if it occurs, it will be the most important launch in YEARS. Coinbase is already one of many greatest exchanges. And it’s BY FAR the most important ETF custodian within the trade.
Coinbase is a crucial participant in crypto, it doesn’t matter what they do. And so they might quickly have a token. What does that imply for you, and wouldn’t it be value shopping for? Let’s dive in.
Why Coinbase Is Contemplating A Token
First, earlier than stepping into why Base is contemplating a token, a query. Why don’t they’ve one already?
And the reply to that’s the US and its regulatory atmosphere. Coinbase has its inventory already, which is a safety. Their concern is that the SEC wouldn’t enable it or accuse them of compliance violations. The SEC governs Coinbase inventory. And it’s unclear whether or not the SEC or the CFTC would regulate the issuance of a token. The chains which are commodities like Bitcoin, Ethereum, Litecoin, and some others are beneath the attention of the CFTC. That is typically higher, even with the Trump-improved SEC we’ve now. In order that’s why there was no token prior to now.
Right now the SEC responded to Coinbase’s petition for a writ of mandamus — asking the courtroom to require the SEC to reply simply sure or no as to whether it’s going to undertake rulemaking for our trade. The SEC’s reply? A convincing possibly. 1/7
— paulgrewal.eth (@iampaulgrewal) Might 16, 2023
Now, I don’t assume we’ve to go too deep into the explanation why a venture would desire a token. You realize them already. However a few issues which are Coinbase-specific embody,
- Including vital worth to Coinbase for its stockholders
- RWA potentialities on account of Coinbase’s clear regulatory report
- The truth that Coinbase is the most important ETF custodian within the trade. It will be simple to tokenize ETFs on chain on Base.
- A number of different revenue alternatives just like the ETF one above on account of Coinbase’s place within the trade.
- Good tokenomics and execution might make it a prime 5 token.
Billions of {dollars} journey on digital asset workflows like personal key signing, transaction validation, and ledger updates.@coinbase handles ~70% of $BTC #ETF custodian enterprise & these ETFs are the quickest rising in historical past.
I imagine these elementary processes are already… pic.twitter.com/g6e8JiAzlA— Reggie Middleton US11196566 US11895246 US12231579 (@ReggieMiddleton) April 28, 2025
However like all issues, it’s not “up solely”. There are additionally dangers. So let’s have a look at these.
Dangers
And there are dangers, too. Particularly in the event that they get the tokenomics fallacious. Optimism and Arbitrum are high-quality L2s with a token that’s not performing effectively. And looking out objectively, it’s simple to see why.
Do you know the Base chain and Uniswap’s new Unichain have been each constructed utilizing Optimism’s instruments and are a part of the Optimism Superchain?
You in all probability didn’t as a result of most individuals don’t. And also you don’t learn about it as a result of Base and Uniswap don’t publicize it. Neither does Optimism. Nor does Optimism earn extra money on Base chain transactions for being key to their complete setup. So the token shouldn’t be aligned with what the chain really does or the income it brings in.
It is a key mistake that Coinbase has to keep away from if it desires the Base token to achieve success.
The Base Ecosystem
Surely, both DeFi or AI Brokers are the most important sector within the Base ecosystem.
For now, DeFi dominates with platforms like Morpho, Aerodrome, and any apps that work seamlessly between the Coinbase alternate and the Base chain to get individuals on-chain. It’s clean and it really works.
However AI Brokers on Base are rising quick. Significantly, Virtuals and its ecosystem of brokers. Lots of aixbt already because the crypto buying and selling/information AI Agent.
aave deploying $100m treasury to not combat morpho or compound.
constructing unbreakable moat earlier than jpmorgan and goldman launch competing merchandise.
first hostile takeover in defi. capital forcing consolidation earlier than tradfi invasion.
— aixbt (@aixbt_agent) September 17, 2025
And a fast-growing presence is Base Pay. With it, you get instruments so as to add one-click checkout with funds in USDC on Base chain. Quick, low cost, simple. That’s simply how individuals need it. That is the sleeper sector inside Base. It’s going to go farther, sooner, than Solana Pay has gone to date. And Solana Pay is doing nice. However they don’t have Circle as a giant investor the way in which Base does.
What About Coinbase Inventory?
Effectively, for those who personal Coinbase inventory, image $COIN on the NASDAQ within the US, then you definitely personal a chunk of an $84 billion greenback firm. And the identical goes for for those who personal the XStocks tokenized model $COINX with Backed because the custodian. What would a Base token do for Coinbase stockholders?
One strategy to play this, and possibly you heard us focus on it on our Area on this subject on Tuesday, is to purchase Coinbase inventory. The common or the tokenized model. Why?
As a result of the closest comparability for a combo token of community token AND alternate token is BNB. BNB has a $130 Billion market worth. Now, a Base token received’t stand up to that straight away. However even when it launches at $200 million, a few of that goes to the group. How a lot of that worth accrues to Coinbase inventory, since Coinbase owns the chain?
Nobody is aware of the reply to this, however we all know the reply is greater than ZERO. In order that’s one strategy to play this. Purchase Coinbase inventory or the XStocks model to carry it on-chain.
May Base Overtake Coinbase in Worth?
Now, that is an fascinating query. What makes BNB so efficient, and some different alternate tokens too, is the alignment between utilization and different incentives. And the way this stuff have an effect on the token. The extra people who use Binance, the extra BNB in charges will get burned every quarter. Everybody wins. Binance burns greater than $1 billion value of $BNB each quarter now.
$BNB JUST BURNED $1.02B WORTH OF TOKENS.
1.59M $BNB GONE IN Q32 BURN.
OVER 50M BNB ALREADY WIPED FROM SUPPLY.
THE HYPE IS REAL🚀 pic.twitter.com/AYB0bjyGxn
— Evan Luthra (@EvanLuthra) July 10, 2025
So if Coinbase will get the tokenomics and incentives proper, be careful. Base might have a worth within the a whole bunch of billions of {dollars}. And that’s greater than Coinbase’s worth at the moment.
Would that proceed or would the $COIN inventory worth rise too? Nobody is aware of. However instances like this have occurred earlier than. Some subsidiaries and sister firms are value greater than your entire firm collectively. The truth is, this is likely one of the methods personal fairness used to make huge cash. They’d discover and break up the unprofitable items and maintain those that earn a living. Or promote one worthwhile piece to carry the remaining without spending a dime.
Shopping for Coinbase inventory could possibly be a decrease threat strategy to revenue from how this all performs out.
Disclaimer
The data mentioned by Altcoin Buzz shouldn’t be monetary recommendation. That is for academic, leisure and informational functions solely. Any info or methods are ideas and opinions related to accepted ranges of threat tolerance of the author/reviewers, and their threat tolerance could also be totally different from yours.
We aren’t answerable for any losses that you could be incur because of any investments immediately or not directly associated to the data supplied. Bitcoin and different cryptocurrencies are high-risk investments, so please do your due diligence.
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