Popular Cryptocurrency platform Coinbase announced on Wednesday that it will not support “Celo’s” upcoming Layer 1 to Layer 2 upgrade in the “Optimism” Superchain crypto ecosystem, drawing strong criticism from the Celo community.
“The Celo L1 Blockchain will migrate to Celo L2 on January 16, 2025.” Coinbase expressed on the social network X. «Coinbase will not support the migration. Due to the hard fork migration, customers must withdraw CGLD from Coinbase by January 13, 2025 to prevent funds from becoming inaccessible,” he added.
It should be noted that Ethereum‘s Layer 2 roadmap focuses on improving scalability through the use of solutions such as rollups, which process transactions outside of the Blockchain to increase performance and reduce costs while maintaining security. via Ethereum.
“It is disappointing that Coinbase has decided not to support the Celo Layer 2 update.” Said Marek Olszewski, the lead developer of Celo. “This looks like a hurdle in Ethereum’s Layer 2-focused scaling roadmap. “Why would other EVM-compatible Layer 1s follow suit now?” he added.
Likewise, Olszewski noted that Celo Layer 1 validators could choose to keep the current Layer 1 Blockchain and rename it Celo Gold (CGLD) to “make life easier for Coinbase.”
It is important to note that CELO will remain the native token on Layer 2 of the network, and will become an ERC-20 on Ethereum. This, to allow its integration into the Superchain and maintaining its supply of 1 billion tokens unchanged, as announced by the company in September.
The crypto community questions Coinbase’s decision
On the other hand, Olszewski was not the only one to express his disappointment with the decision. For reference, “Verda Ventures” partner Alex Witt questioned why Coinbase does not support Celo, if it is also involved with Base, another network built with OP Stack that is part of the same L2 ecosystem as Celo.
“The fact that Celo is part of the Superchain brings it as close as possible to a 1:1 relationship with Base.” Said another member of the crypto community. “So, if Base can have direct connections to Coinbase, other Superchains like Celo should too,” he added.
However, Ethereum expert Anthony Sassano suggested that this could simply be an “internal communication issue at Coinbase.”
«I think this is likely an internal oversight at Coinbase. “There is no chance that the company building Ethereum Layer 2, a leader in users and a major contributor to OP public goods, will choose to stop supporting Celo after it becomes an OP Stack-based L2.” Sassano expressed.
In addition, other users criticized that the decision was made at the “last minute”, when the Celo update had been known for more than a year. For reference, Celo first presented its L2 transition plans in July 2023, and subsequently received governance approval and proposed using the OP Stack for the April launch.
“We see this as a moment of coming home, something the community has been thinking about for a while and that hasn’t been possible until the recent Layer 2 research developments.” Olszewski said.
It is important to note that the Celo L2 update is expected to occur on December 12 of this year.
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