Coinbase CEO Brian Armstrong announced on Monday that the company is exploring the possibility of launching a native token for its Ethereum layer-2 network, Base. The statement, released via an official announcement on September 16, 2025, marks a significant shift in Coinbase’s approach toward tokenomics, as Base has operated without its own token since its launch in 2023.
Base’s Dominance and Controversy
Base has rapidly grown to become the largest Ethereum L2 by total value locked (TVL), surpassing $5 billion. Known for its low fees and high throughput, Base has attracted a wide range of decentralized applications (dApps) across DeFi, NFTs, and social platforms. However, its success has also drawn criticism. In a report earlier this year, Standard Chartered Bank described Base as an “extractive network,” arguing that all profits (fee revenue minus data recording costs) flow to Coinbase rather than benefiting the Ethereum ecosystem. The bank estimated that this value extraction has effectively reduced Ethereum’s market capitalization by approximately $50 billion.
Official Exploration Statement
“We’re exploring a Base network token. It could be a great tool for accelerating decentralization and expanding creator and developer growth in the ecosystem,” Armstrong stated. He quickly added, “To be clear, there are no definitive plans. We’re just updating our philosophy. As of now, we’re exploring it.” The cautious wording suggests Coinbase is still weighing the regulatory, technical, and economic implications of issuing a token. Other major L2s such as Arbitrum, Optimism, and zkSync already have governance tokens, and Base’s absence has long been a topic of community discussion.
Market Implications and Community Reaction
Following the news, Coinbase’s stock price saw a slight uptick in after-hours trading. Crypto Twitter erupted with speculation: proponents argue that a token would incentivize early users, reward developers, and facilitate decentralized governance. Detractors worry about increased regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC) and potential dilution of Ethereum’s value. As a publicly traded company, Coinbase must tread carefully to avoid classification of the token as an unregistered security.
What’s Next?
Armstrong’s statement indicates that Coinbase is actively evaluating token models but has not made any final decision. Industry observers expect that if Base does launch a token, it could quickly become one of the top cryptocurrency assets by market cap, given Base’s massive user base and TVL. The crypto community will be watching closely for any further updates from Coinbase in the coming weeks.