Coinbase (COIN), the largest cryptocurrency exchange platform in the US, is working on new strategies to attract more crypto users to the platform. In February 2023, Coinbase announced ‘Base,’ a new testnet launch of its Ethereum Layer-2 network.
The main purpose of introducing Base is to offer a low-cost, safe and secure, developer-friendly way to build decentralized apps (dApps) on-chain, which are run on a blockchain network of computers instead of a single one. Coinbase said it would launch Base by using Optimism (OP) technology. According to CoinMarketCap, OP is trading at $1.89, down by 2.10% in the past 24 hours.
On March 9, Coinbase tweeted that it would launch its first-ever quest on Coinbase wallet with Optimism. It may be the new way to earn on-chain crypto by learning Web3. To earn quests on Optimism, the user has to finish activities like staking, swapping and delegating.
“All quests are mobile-only, first come, first serve, and OP rewards may deplete quickly. Quests availability may vary by country,” Coinbase tweed.
And there is Coinbase Wrapped Staked ETH(cbETH), another example of the firm’s on-chain activity. It is a utility token representing the Ethereum Layer-2 network (ETH2), where ETH is staked through Coinbase. Coinbase protocols lead Jesse Pollak said, “Coinbase recently, with things like USDC, Coinbase Wallet, cbETH, and our dApp Wallet, has started to build what we call ‘on-chain native’ products.”
The US-based investment management firm Ark Investment Management currently holds 9.9 million shares of Coinbase worth $575 million. On Friday, Coinbase shares sank due to the sudden downfall of crypto-friendly bank Silvergate Bank. At press time Coinbase Global Inc market closed at $53.44, down by 8.00%.
Meanwhile, Coinbase reacted to the current scenario of the crypto industry: “We’re sorry to see Silvergate make the tough decision to wind down their operations. They were a partner and contributors to the growth of the crypto economy.”
Coinbase assured its users, saying the company has no client or corporate cash at Silvergate and the users’ funds continue to be safe, secure and accessible.
On March 11, Coinbase tweeted that it is temporarily pausing USDC. Earlier, Circle confirmed that $3.3 billion in cash deposits remained at Silicon Valley Bank (SVB). On Friday, SVB was closed by the regulators due to the downfall of Silvergate Capital Corp on Thursday.