Layer 2 Goliath 🐲 Denies ETH Sell-off Scandal, Vows Eternal Love for Ethereum 🥰

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Oh, what a time to be alive! Base, the Layer 2 scaling solution, has bravely stepped into the spotlight to refute the whispers of an alleged Ethereum sell-off. 🗣️ “Fret not, dear crypto community!” declares Kabir, a valiant knight of the Base team. He clarifies that the noble project remains steadfast in its mission to cultivate the fertile grounds of the Ethereum ecosystem, pouring all its earnings and resources back into the soil. 🌱 In a mere 1.5 years, Base has welcomed millions of eager new farmers onto the blockchain, and the harvest shall continue! 🌾

But alas, a dark cloud looms on the horizon. Santisa, the enigmatic CIO of investment firm Lucidity Cap, has cast doubt upon Base’s integrity. He alleges that Base has been secretly funneling all its sequencer fees to the mighty Coinbase, akin to a rogue stream diverting its waters away from the village. 💦 While the fate of these funds at Coinbase remains a mystery, Santisa questions their absence from the Base treasury and the implications of such opacity. 🕵️‍♂️

“Falsities, I say! Hear the truth, dear friends!” exclaims Kabir. “Base is, and always will be, the steadfast guardian of Ethereum’s growth. We invest every coin and every ounce of our being into this sacred cause. From the barren earth, we’ve cultivated a lush garden of millions of new souls in just 1.5 years.” 🌿

— Kabir | kabir.base.eth (@kabir_base) February 9, 2025

On-Chain Data Whispers of Mysterious Fund Journeys 🕵️‍♀️

Sonic Assistant, a cryptic oracle of the blockchain realm, reveals through the mystical X network that Base’s L2 sequencer operates with a princely 90% profit margin, amassing over $100 million in ETH. Yet, the trail of sequencer-earned ETH leads from Base to Ethereum and then vanishes into Coinbase’s vault. 🏛️ Surprisingly, Coinbase’s financial scrolls show only a meager addition of 772 ETH to its coffers since Base’s inception in August 2023. 💎

“Lo and behold, 100% of the spoils from @base’s L2 sequencer journey to Coinbase’s domain. This is a fact, verifiable by all who dare to seek the truth.” 📜

— The Assistant (@SonicAssistant) February 10, 2025

Recent whispers of a 240.35 ETH transfer to Coinbase have only stoked the flames of suspicion. Meanwhile, Andre Cronje, the sage co-founder of Sonic Labs, once critiqued the Layer 2 model, lamenting how networks with centralized sequencers rake in hefty fees while contributing but a pittance to Ethereum’s security and data availability. 🛡️

Base’s Unwavering Pledge to Ethereum’s Prosperity 🍀

In a grand gesture, Kabir reveals that Base and Coinbase together safeguard over 100,000 ETH, a treasure chest worth more than $300 million. This makes them the proud custodians of the largest Ethereum reserve among publicly traded companies and Layer 2 organizations. 🏆 Kabir explains that the movement of assets to Coinbase is due to off-chain custody for security and auditing purposes, ensuring the treasure’s safety. 💪

“Base and Coinbase stand tall, holding ETH with pride and disclosing our long-term holdings (100K ETH+, $300M+). To my knowledge, this is the greatest ETH holding of any public company, surpassing any other L2 DAO or Labs company. Base uses off-chain custody for the sake of security and audits, hence the funds’ journey to Coinbase.” 📝

Kabir ensures that Base’s priorities lie in earning and spending in Ethereum, covering Layer 1 expenses and distributing generous grants in ETH. Although some off-chain expenses, like salaries, are paid in USD, he assures that the ETH converted for this purpose is but a drop in the ocean compared to their vast holdings and the broader Ethereum market. 🌊 Kabir reiterates Base’s dedication to long-term expansion, dismissing baseless speculations as unproductive chatter. 💬

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2025-02-10 21:08