Coinbase's layer-2 network, Base, has denied allegations that it sold its Ethereum (ETH) holdings. Concerns were raised when it was observed that sequencer fees from Base were being directed to Coinbase, leading to speculation about transparency and potential ETH sales. However, Base strategist Kabir Sadarangani refuted these claims, stating that accusations of a lack of transparency and ETH sales were baseless. The allegations were further analyzed by Sonic The Assistant, who discovered that Base's sequencer operations generated significant profits, with related ETH being sent to Coinbase. Questions were raised about the whereabouts of the remaining ETH. Andre Cronje, the co-founder of Sonic Labs, also criticized Base's practices and its lack of transparency. In response, Sadarangani defended Base's financial practices, stating that earnings were reinvested in the Ethereum ecosystem rather than being liquidated. He emphasized that Base remains committed to long-term ecosystem growth rather than short-term gains.



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