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- Coinbase will not support Celo’s migration to Ethereum Layer 2, requiring users to withdraw funds by January 13, 2025.
- The Celo community sees Coinbase’s decision as a setback for Ethereum’s Layer 2 scaling efforts and decentralized finance adoption.
Coinbase has officially declined to facilitate Celo’s transfer to Ethereum’s Layer 2 ecosystem, giving customers a short window to act. The last date users may withdraw their Celo holdings from the website is January 13, 2025.
Users run complete risk of losing access to their money should the deadline be missed. The Celo community, which sees Coinbase’s lack of support as a major setback to the larger acceptance and scaling efforts of Ethereum’s Layer 2 solutions, is rather concerned about this choice.
COINBASE SAYS “NO THANKS” TO CELO LAYER 2 UPGRADE
Coinbase announced it won’t support Celo’s move to Layer 2, leaving users to withdraw funds by Jan 13 or lose access.
Celo’s community isn’t happy, calling this a blow to Ethereum’s Layer 2 scaling roadmap.
Meanwhile, Kraken… pic.twitter.com/MTUq3emBYs
— Mario Nawfal’s Roundtable (@RoundtableSpace) November 28, 2024
Challenges Arising from Coinbase Withdrawal in Celo’s Layer 2 Transition
Aiming at using Ethereum’s strong security, enhanced scalability, and more interoperability, Celo’s intended move from its standalone Layer 1 blockchain to Layer 2 on Ethereum For users who depend on Coinbase to handle their Celo assets, though, abstaining from this upgrade creates issues.
Frustrated community members have emphasized that this choice compromises Ethereum’s Layer 2 roadmap and its goal for scaling decentralized finance. Although the transfer was considered a necessary step toward matching Ethereum’s larger ecosystem, Coinbase’s withdrawal of support signals conflicting messages to investors.
Critics contend that this action highlights how poorly centralized platforms support innovation in distributed networks. The withdrawal need for current users adds extra procedures that can disturb their interaction with the site and its ecosystem.
Coinbase’s larger plans, in the meantime, point to a change of emphasis. Previously reported by CNF, Coinbase has teamed with the Los Angeles Clippers and debuted its branding at the Intuit Dome to appeal to a varied viewership of basketball enthusiasts.
Aiming to combine the world of crypto with professional basketball for increased brand recognition, this collaboration highlights Coinbase’s strategic push into sports.
