Base Creator Jesse Pollak Defends Coinbase Amid Criticism Over ETH Selling
Base creator Jesse Pollak has pushed back against criticism of Coinbase over allegations that the cryptocurrency exchange has been “selling ETH,” arguing that the company remains one of the largest non-DAT holders of Ether and a major contributor to the Ethereum ecosystem.
Pollak made the comments after an Ethereum Foundation member, chaskin.eth, argued that criticism directed at Coinbase by parts of the Ethereum community was “badly misplaced.” The discussion focused on Coinbase’s role in Ethereum infrastructure, including its Base network and other products and contributions.
According to information shared by @WuBlockchain on X, Pollak said Coinbase is the largest non-DAT holder of ETH “by an order of magnitude.” He also highlighted the company’s role as one of Ethereum’s largest customers through Base and as a significant contributor to development across the Ethereum Virtual Machine ecosystem.
Pollak Points to Coinbase’s Ethereum Role
Pollak argued that criticism of Coinbase should take into account the company’s broader involvement with Ethereum rather than focusing solely on transactions involving ETH.
He described Coinbase as a major participant in the Ethereum ecosystem and emphasized its connection to Base, the Ethereum layer-2 network created by Coinbase.
Base is built using Ethereum technology and is designed to provide infrastructure for decentralized applications and transactions while leveraging Ethereum as its underlying settlement network.
Pollak also highlighted Coinbase’s position as a significant holder of Ether outside the category of companies classified as digital asset treasury, or DAT, entities.
He said Coinbase had held approximately 150,000 ETH for years through multiple markets ups and downs. The figure was cited by Pollak as evidence of the company's long-term exposure to Ether rather than short-term involvement in the asset.
Ethereum Community Debate Over Coinbase
The comments followed criticism from some members of the Ethereum community concerning Coinbase’s relationship with ETH.
Chaskin.eth, an Ethereum Foundation member, argued that much of the criticism directed at Coinbase was misplaced and pointed to several contributions made by the company and its broader ecosystem.
Those contributions include Base, USDC, cbBTC, EIP-4844, ERC-4337 smart wallets and x402.
The list reflects Coinbase’s involvement in several areas of the Ethereum and broader crypto infrastructure, ranging from layer-2 development and stablecoins to tokenized Bitcoin, transaction infrastructure, smart wallets and payment-related technology.
Pollak’s response similarly focused on Coinbase’s role as an active participant in the ecosystem.
Rather than viewing Coinbase solely through the lens of its trading activity, he argued that the company should also be considered a customer, cryptocurrency developer and contributor within Ethereum.
Pollak Warns Against Alienating Ethereum Users
Pollak also criticized what he described as the tendency within parts of the Ethereum community to “moralize” its customers.
He urged the community to avoid attacking participants that use Ethereum and contribute to its ecosystem.
According to Pollak, such behavior is counterproductive because it could leave users and businesses feeling alienated from the network.
The comments reflect an ongoing discussion within blockchain communities about the relationship between open-source protocols and commercial companies that build businesses around them.
Ethereum has a broad ecosystem that includes independent developers, infrastructure providers, decentralized applications, exchanges and other companies. Those participants can have different commercial interests while still relying on the same underlying protocol.
Coinbase’s Position in the Ethereum Ecosystem
Coinbase has become closely associated with Ethereum through multiple products and services.
Base represents one of the company's most prominent contributions to the Ethereum scaling ecosystem. Coinbase has also developed or supported products involving USDC, cbBTC and smart-wallet infrastructure.
The company's involvement means that changes in Ethereum's technology can have direct implications for Coinbase and its users, while Coinbase's products can also influence activity across the Ethereum ecosystem.
Pollak's argument is that this relationship should be considered when evaluating the company's actions involving ETH.
He specifically emphasized Coinbase's historical holdings of approximately 150,000 ETH and its broader role as a participant in Ethereum development.
The debate nevertheless illustrates the differing expectations that can exist between decentralized protocol communities and large centralized companies.
For Ethereum, companies such as Coinbase can provide significant infrastructure, liquidity and user access, while their commercial decisions can also attract scrutiny from members of the community.
Pollak's latest comments argue that criticism should account for both sides of that relationship.
As the discussion continues, Coinbase's role in Ethereum is likely to remain an important subject for developers, investors and users evaluating the relationship between the protocol and the companies building businesses around it.
Writer: Victoria HaleTechnology & Blockchain WriterVictoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.She prioritises clarity and accuracy when explaining technical developments to a general audience.
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