Coinbase ETH selling accusations were publicly rejected by Jesse Pollak after X critics questioned the exchange’s commitment to Ethereum.
Pollak, Coinbase’s vice president of engineering and Base creator, argued that the company remains the world’s largest non-treasury Ethereum holder. Critics responded that Base generates sequencer fees in ETH before Coinbase converts those proceeds into dollars and bitcoin.
The dispute has renewed questions among Ethereum users and investors about loyalty from exchanges and businesses operating within its ecosystem.
Online Comment Sparks Coinbase Debate
The argument began after chaskin.eth said resentment toward Coinbase within the Ethereum community was “badly misplaced.” The X user compared the criticism with a business attacking its largest customers because they purchased less of its stock.
Pollak supported that assessment, saying it “blows my mind” that Coinbase faces attacks concerning ETH sales.
However, cyp.eth challenged venture investor Nick Tomaino’s description of Coinbase as “values aligned with Ethereum.” The critic said Coinbase’s values included “constantly selling ETH from Base execution fees to USD and BTC.”
That criticism reflects concerns that Base earns fees in ether before Coinbase allegedly converts the proceeds into other assets.
Pollak Highlights Coinbase Ethereum Holdings
Pollak avoided debating individual transactions and instead emphasized the scale of Coinbase’s holdings. He called Coinbase “the largest non-DAT holder of ETH by an order of magnitude.”
The description means Coinbase reportedly holds substantially more ether than peers outside dedicated digital-asset-treasury companies. Pollak also said, “Coinbase literally held 150K ETH for years,” despite market cycles and changing views about layer-2 networks.
Strategic ETH Reserve lists Coinbase with approximately 151,180 ETH, valued near $256 million. The exchange ranks sixth behind dedicated treasury companies, including Bitmine Immersion Tech, which holds more than 5.5 million ETH.
Base Sequencer Fees Fuel Wider Disagreement
The central criticism concerns Coinbase’s operation of Base’s sequencer, which orders and processes transactions. It collects fees in ETH, which critics say Coinbase converts into dollars or bitcoin.
Some observers argue that Coinbase keeps bitcoin on its balance sheet while treating ether as an operating asset. Chaskin.eth previously estimated that roughly 75% of Coinbase revenue came from trading and holding bitcoin while expressing hope that this changes.
Pollak said balance-sheet calculations overlook Coinbase’s wider Ethereum contributions. He cited its work delivering EIP-4844, which lowered layer-2 costs through “blob” data, alongside its role in creating USDC.
He also highlighted the millions of users Coinbase introduced to Ethereum, arguing that this reach outweighs one balance-sheet decision.
His response focused on holdings, infrastructure development, users, and decentralization.
Base launched in 2023 and has become one of Ethereum’s busiest layer-2 networks. It recently reached Stage 1 decentralization, reducing Coinbase’s direct control over network operations.
