Crypto exchange Coinbase has set a date for its own Layer-2 Blockchain Base. Working on Optimism (OP), Base offers lower transaction fees than Ethereum.
Coinbase dates Base to August
The US-based exchange announced that on August 9, the Base network will be opened to full access. However, it has already launched an Ethereum bridge. Jesse Pollak, head of protocol at Coinbase, said in the official announcement, “Base’s bridging functionality is currently available. “The Mainnet will be available to everyone on August 9,” he said.
The official bridge, which will be released on August 9, will offer users token transfer between Base and Ethereum. Base is a Layer 2 Blockchain running on OP. Basically, it aims to offer lower transaction fees than Ethereum. Coinbase aims to build a strong Ethereum alternative in the DeFi industry with the new Blockchain.
https://twitter.com/BuildOnBase/status/1687088084704509952
Coinbase-backed Base’s developer-only mainnet went live on July 13. The new Blockchain is primarily made available to developers. However, some users have managed to connect to a portal proxy contract to collect new meme coins launched on Base before the official launch. With this connection, they transferred their assets to the network using other unofficial bridges.
Notable among them was the meme token named Bald, which was launched by a developer and has a valuation of $85 million. The value of the token dropped to almost zero as a result of the developer suddenly withdrawing liquidity. Bald soon came to the fore with “rug pull” headlines.
Base overshadowed by hacking and rug pull events
The new meme token Bald, posted on social media reports on the Base network of the Coinbase exchange, fell 85% after its developer allegedly pulled 1,034 ETH liquidity worth about $1.9 million from the market. Developer Bald (BALD) refused to make the sale, saying, “I added/removed and bought 2-sided liquidity.” As you follow on Kriptokoin.com, the meme token’s connections with FTX have also been revealed.
Watching the $BALD chart pic.twitter.com/2lc0HEVlNu
— Whale (@WhaleChart) July 31, 2023
Coinbase’s Base network became available to developers on July 13. However, the development team urged ordinary users not to use the network, as there is no working user interface (UI) for its bridge. Despite these warnings, some investors are sending tokens to Base over different networks.
This followed a major security hack on Base’s decentralized exchange LeetSwap. The official launch of the Base network presents new opportunities for users, but also shows some risks.
Base-based DEX has stopped trading on LeetSwap
On July 31, LeetSwap halted all its operations for fear of an exploit. LeetSwap said late on Monday, “As our DEX was forked from Solidly, our factory had a security pause function. We realized that some of the pool liquidity was at risk. We have temporarily suspended operations to investigate,” he wrote.
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