Coinbase Responds to Criticism Over Its Sale of Ethereum

Coinbase founder Jesse Pollak responded to criticism that Coinbase sells Ethereum ($ETH), saying that the company’s contributions to the Ethereum ecosystem are being overlooked.

Pollak stated in a social media post that Coinbase is by far one of the largest institutional $ETH holders, excluding digital asset treasury companies known as “DATs.” He also claimed that Coinbase has become one of Ethereum’s largest customers through the Base network, and that the company has made significant contributions to many developments in the EVM and Ethereum roadmap.

Pollak stated that Coinbase introduced millions of users to the Ethereum ecosystem through Base, adding, “I can’t understand why Coinbase is being attacked for selling $ETH.” The Base founder also said that Coinbase held approximately 150,000 $ETH over the years, during many market ups and downs.

The statements came after chaskin.eth, a member of the Ethereum Foundation, argued in a post that much of the community backlash against Coinbase was misdirected. chaskin.eth pointed out that Coinbase and its affiliated teams contribute to various projects that play a significant role in the Ethereum ecosystem, including Base itself, USDC, cbBTC, EIP-4844, ERC-4337-based smart wallets, and x402.

Pollak, meanwhile, urged the Ethereum community to refrain from constantly criticizing the protocol and the companies using its ecosystem. Arguing that a hostile approach towards customers would harm the ecosystem in the long run, Pollak stated that he loves Ethereum and is happy with past collaborations, but the current approach has become “absurd.”

According to Pollak, for the Ethereum ecosystem to grow, companies that use the protocol and develop products on top of it need to be supported, not excluded. He also stated that the continued criticism of the Coinbase sale could lead to large institutional users distancing themselves from the Ethereum community.

*This is not investment advice.