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BinanceUS Listens To Community: Crypto Trading Pairs Saved From Removal

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Surprisingly, BinanceUS has made a significant update to its trading offerings following community feedback. The exchange had initially announced the removal of hundreds of trading pairs, causing concern among users. 

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However, the latest announcement brings relief as BinanceUS reverses its decision regarding USDT Advanced Trading pairs.

Coinbase, another major cryptocurrency exchange, had recently stated that it had no intentions of delisting crypto tokens that the Securities and Exchange Commission (SEC) had deemed securities. 

Moreover, Coinbase assured its users that staking services would continue without interruption. This news set a precedent in the crypto world and caught the attention of BinanceUS.

In response to the community’s feedback, BinanceUS swiftly altered its plans. The exchange clarified that it would no longer remove any USDT Advanced Trading pairs. 

This decision ensures that all cryptocurrencies and USDT pairs will remain available for trading, providing a sense of stability and continuity for BinanceUS users.

BinanceUS: Select BTC & BUSD Advanced Trading Pairs To Be Removed

Nonetheless, the exchange did announce the removal of select BTC and BUSD Advanced Trading pairs, effective from June 8, 2023, at 9 a.m. PDT / 12 p.m. EDT. The affected pairs include ATOM/BTC, BCH/BTC, DOT/BTC, LRC/BTC, MANA/BTC, UNI/BTC, VET/BTC, and XTZ/BTC for BTC, as well as HBAR/BUSD and ONE/BUSD for BUSD.

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It’s important to note that these changes solely impact Advanced Trading pairs and not the overall availability of trading for all cryptocurrencies.

In addition to adjusting its Advanced Trading pairs, BinanceUS also made changes to its Buy, Sell & Convert offering. The exchange streamlined the service and reduced the number of supported Convert trading pairs to 226. 

Notably, the updated Buy, Sell & Convert platform now supports a maximum order amount of $10,000. Users can continue to utilize this service for various assets, including USDT, USDC, BNB, ETH, BTC, and many others.

However, one feature that has been temporarily suspended is BinanceUS’s OTC Trading Portal. The exchange has decided to pause this service, citing the need for further assessment. 

Binance.US assures its customers that their assets remain secure and that deposits, withdrawals, and regular trade functionality continue as usual.

To avoid any inconveniences, BinanceUS advises its users to review their trades and either execute or cancel open orders associated with the impacted Advanced Trading pairs before the removal takes effect.

Nevertheless, BinanceUS’s swift response to community feedback demonstrates its commitment to providing a transparent and user-centric trading experience. 

However, the reversal of its decision regarding USDT Advanced Trading pairs and the continuation of essential services aim to maintain a seamless crypto trading environment for its valued users.

Related Reading | Cumberland’s Crypto Exodus: Shiba Inu And Major Assets In The Spotlight

Coinbase Takes A Stand: Defies SEC & Vows To Fight For Crypto Tokens

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Coinbase, the leading cryptocurrency exchange in the United States, has made it clear that it will not back down in the face of the Securities and Exchange Commission’s (SEC) allegations that certain crypto tokens listed on its platform are securities. 

CEO Brian Armstrong affirmed this stance during an interview at the Piper Sandler Global Exchange and Fintech Conference.

Armstrong stated that Coinbase has no intention of delisting any of the tokens mentioned in the SEC’s lawsuit. He emphasized that the assets in question will continue to be traded until a court ruling is made. 

While Coinbase does occasionally delist tokens, this is done as part of its normal listing standard, according to Armstrong.

The SEC’s lawsuit against Coinbase has far-reaching implications for the cryptocurrency industry as a whole. By actively challenging the SEC’s allegations, Coinbase is positioning itself at the forefront of a potentially transformative legal battle.

In contrast to Coinbase’s defiant approach, Binance.US, which was also sued by the SEC, has taken a different course of action. The subsidiary of Binance, a major global cryptocurrency exchange, has halted over-the-counter trading and delisted several trading pairs. 

These moves indicate the mounting pressure faced by exchanges in the wake of the SEC’s regulatory crackdown.

Coinbase’s Optimism: No Immediate Risk of Losing Customers or Banking Partners

Despite the regulatory challenges, Armstrong remains optimistic about Coinbase’s future. He stated that the company has not observed any immediate risks of losing customers or banking partners. 

Furthermore, the exchange boasts a robust financial position, with over $5 billion on its balance sheet to support ongoing operations and cover legal expenses.

Armstrong said:

I think we’re gonna be fine going to the court. Even if this takes some time, that’s OK.

Coinbase’s defiance in the face of the SEC’s allegations reflects a broader concern within the industry that increased regulation of cryptocurrencies as securities could stifle innovation. 

The distinction between securities and commodities is crucial, as the former are subject to more stringent regulations.

While the exchange remains focused on its legal battle, it is also contending with scrutiny from state regulators. Authorities in various states, including California and New Jersey, have called on Coinbase to halt its staking service.

However, Armstrong affirmed that the staking services will continue uninterrupted during the court proceedings.

However, the SEC’s recent actions against Coinbase and Binance highlight the intensifying regulatory landscape surrounding cryptocurrencies. 

The outcomes of these legal battles will have significant implications for the industry as a whole, shaping the future of crypto exchanges and the regulatory framework they operate within. 

Despite the challenges ahead, the exchange remains determined to defend its position and maintain business as usual.

Related Reading | Ethereum: BTC Advocate Jack Dorsey Classifies ETH As Security 

SEC’s Binance Lawsuit Sends Tremors: Coinbase & Kraken Brace For Impact

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The recent lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Binance Holdings Ltd. has sent shockwaves through the cryptocurrency market, with potential ramifications for other American exchanges. 

Coinbase, Kraken, and others now face the difficult decision of whether to delist numerous tokens as the SEC’s regulatory crackdown intensifies.

The SEC’s lawsuit, which emerged on Monday, identified a dozen digital tokens as unregistered securities, subjecting them to stringent investor protection regulations. 

The agency’s move adds over $115 billion worth of crypto assets to its list of targeted tokens, with Binance’s BNB, stablecoin BUSD, Cardano’s ADA, Solana’s SOL, Polygon’s MATIC, Filecoin’s FIL, and Algorand’s ALGO among those specifically mentioned. 

When combined with previously targeted tokens like XRP, the SEC now considers a staggering $115 billion worth of coins as unregistered securities.

SEC Chair Gary Gensler has consistently maintained that most tokens fall under the agency’s investor-protection laws and has advocated for trading platforms to register with the regulator. 

However, the designation of specific tokens represents a more stringent approach. This year, U.S. officials have intensified their crackdown on digital assets, prompted by the market turmoil of 2022 and various high-profile failures, including the bankruptcy of the FTX exchange.

Binance Vs. SEC: Coinbase, Kraken, & Others Grapple With Delisting Decision

The fallout from the SEC’s actions is expected to hit Coinbase, Kraken, and other U.S.-based exchanges the hardest. Jeff Dorman, Chief Investment Officer at Arca, a digital-asset specialist, highlighted the dilemma these exchanges now face, stating:

 Who actually gets hurt by this is Coinbase, Kraken, and other US-based exchanges, who then have to make a decision on whether to delist.

The risk of delisting also threatens U.S. market makers, potentially causing them to cease market-making activities for tokens designated as securities.

Although the SEC’s lawsuit has already impacted token prices, resulting in losses across various assets, experts like Dorman predict that the long-term effect on prices will be minimal as these tokens continue to be traded on offshore exchanges.

Berenberg analyst Mark Palmer suggests that the SEC’s lawsuit against Binance could serve as a preview of future actions against Coinbase. Drawing parallels between the Binance case and previous lawsuits filed against Bittrex and Kraken, Palmer believes that Coinbase may be next in line to face regulatory scrutiny.

In light of these developments, the crypto industry anxiously awaits further updates as the SEC’s lawsuit against Binance sends shockwaves through the market, potentially reshaping the landscape for U.S. exchanges and investors alike.

Related Reading | Tether Joins ‘Volcano Energy’ To Power El Salvador’s Renewable Future 

Bitcoin Takes A Dive, Plunges To $25k, Extending 11-Week Low

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Bitcoin, the leading digital currency, has experienced a sharp decline, reaching its lowest point in 11 weeks. This drop comes as Binance, one of the world’s largest crypto exchanges, faces regulatory challenges. 

BTC 7D graph coinmarketcap 1
Source: CoinMarketcap

The United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance on Monday, accusing the exchange and its affiliated companies of facilitating the trading of tokens that are considered securities.

The SEC’s report specifically mentions several tokens, including BNB, BUSD, SOL, ADA, MATIC, FIL, ATOM, SAND, MANA, ALGO, AXS, and COTI. 

The exchange is also accused of providing coin-earning programs such as BNB Vault and Simple Earn, as well as a staking investment plan. Furthermore, the SEC alleges that Binance deliberately evaded supervision by US authorities.

The regulatory crosshair targeting Binance has not only affected Bitcoin’s price but has also resulted in significant losses for several altcoins, as seen in both daily and weekly charts.

Following the announcement of the SEC lawsuit, Bitcoin’s value dropped from $26,800 to $25,400. Similarly, Binance Coin (BNB) experienced a decline from $305.17 to $272.89. 

BNB 7D graph coinmarketcap
Source: CoinMarketcap

Other prominent cryptocurrencies mentioned in the lawsuit, such as Solana (SOL), fell from $22.04 to $19.42, Cardano (ADA) from $0.379 to $0.3483, and Polygon (MATIC) from $0.8933 to $0.8304.

However, the regulatory storm did not end there. Just a day after the SEC sued Binance, the commission filed a lawsuit against Coinbase, another leading crypto exchange, over allegations of unregistered activities. The impact of these lawsuits on the overall market remains to be seen.

Bitcoin Price Prediction

According to CoinMarketcap, Bitcoin (BTC) is currently being traded at $25,937.39, indicating a slight recovery compared to yesterday’s performance. However, it remains in the negative territory, reflecting a loss of approximately 3.14% over the past 24 hours and 6.61% on the weekly chart.

Based on Bitcoin price predictions, technical indicators suggest a bearish sentiment with an extreme fear reading of 11.59 on the Fear & Greed Index. On June 6, 2023, most technical analysis indicators signaled a bearish sentiment, resulting in a 10.43% decrease in Bitcoin’s value over the last 30 days. 

However, there is a possibility of a slight recovery in the coming month. By the end of June, Bitcoin is expected to experience a 114.84% increase, reaching approximately $55,724.19. 

Presently, all indicators point towards a bearish zone, and the fear & greed index remains at 11.59, indicating extreme fears. Bitcoin is currently trading below the 200-day simple moving average and the 50-day SMA, both signaling a sell. 

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Source: Digitalcoinprice.com

The 200-day SMA is projected to drop, reaching $23,237.62 by December’s end, while the short-term 50-day SMA shows $27,744.56 by December 2023. Additionally, RSI is currently at RSIValue, suggesting a neutral position in the BTC market.

SEC Strikes Coinbase Amidst Binance Fallout: Sues Unregistered Activities

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In a rather unexpected turn, just one day after Binance found itself in the crosshairs of regulatory scrutiny, the Securities and Exchange Commission (SEC) took legal action against Coinbase, a renowned cryptocurrency exchange.

The lawsuit, filed in a New York federal court, accuses Coinbase of acting as an unregistered broker and exchange, demanding that the company be permanently restrained from continuing these activities.

Coinbase’s Alleged Unlawful Facilitation of Crypto Asset Securities

In a press release published by the SEC, it was revealed that Coinbase had faced charges for conducting its crypto asset trading platform without proper registration as a national securities exchange, broker, and clearing agency.

Furthermore, the complaint asserts that the company neglected to register the offering and sale of its crypto asset staking-as-a-service program. The SEC claims that since 2019, the company has unlawfully facilitated the buying and selling of crypto asset securities, earning billions of dollars in the process. 

The complaint further states that it combines the functions of an exchange, broker, and clearing agency without obtaining the required registration from the Commission.

The company is accused of depriving investors of crucial protections, such as SEC inspection, recordkeeping requirements, and safeguards against conflicts of interest.

It allegedly occurred through their provision of a marketplace where buyers and sellers can interact, facilitating securities transactions for customers and offering settlement facilities for crypto asset securities.

Additionally, the SEC accuses Coinbase’s holding company, Coinbase Global Inc. (CGI), of being a control person of Coinbase and thus liable for certain violations. The lawsuit also addresses the company’s staking-as-a-service program, which allegedly conducted an unregistered securities offering. 

The program allows customers to earn profits by participating in blockchain transaction validation services. The company pools customers’ stakeable crypto assets and distributes rewards to customers whose assets were part of the pool. The SEC claims that Coinbase failed to register this offering as required by law.

However, according to the press release, the SEC’s complaint seeks injunctive relief, disgorgement of ill-gotten gains, penalties, and other equitable relief. 

Coinbase’s legal battle with the SEC highlights the increasing scrutiny faced by cryptocurrency exchanges and the need for compliance with securities regulations. As the case unfolds, the outcome will undoubtedly have significant implications for the entire crypto industry.

Related Reading | Binance Faces SEC Lawsuit: Crypto Giant Caught In Regulatory Storm

Coinbase Launches Institutional Bitcoin & Ether Futures On Derivatives Exchange

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Coinbase Derivatives Exchange, a CFTC-regulated platform, is making waves in the cryptocurrency market with the upcoming launch of its institutional-sized Bitcoin and Ether futures contracts. 

In an official blog post, Coinbase announced that these new contracts would cater to institutional investors by offering lower fees and greater precision in managing risk.

The move comes as a response to the growing demand for advanced derivatives products within the institutional space. Following the successful launch of nano Bitcoin (BIT) and nano Ether (ET) contracts, Coinbase recognized the need to provide more tailored solutions for institutional participants.

The institutional-sized contracts, denoted as Coinbase Bitcoin (BTI) and Coinbase Ether (ETI) futures, will be settled in USD and will be available through leading third-party institutional futures commission merchants (FCMs) and brokers. 

This strategic partnership aims to facilitate seamless access to these contracts through established and reliable trading platforms.

Coinbase: Empowering Institutional Investors with Tailored Exposure and Granularity

By introducing these contracts, the Derivatives Exchange aims to empower institutional investors with enhanced risk management tools and the ability to express directional views or track the returns of Bitcoin and Ether in a more capital-efficient manner. 

Each BTI contract will represent 1 Bitcoin, while each ETI contract will represent 10 Ether, providing participants with the granularity needed to tailor their exposure to these digital asset commodities.

One of the standout features of these institutional-sized contracts is their significantly lower fees compared to traditional offerings. 

By reducing trading costs, the company seeks to foster a more accessible and inclusive trading environment, benefiting institutional investors and the wider crypto ecosystem.

Coinbase’s commitment to innovation and customer-centric solutions shines through in this announcement. The company is dedicated to providing market participants with cutting-edge financial instruments tailored to their specific needs. 

This focus on customization and accessibility has been a driving force behind Coinbase’s success and its ability to meet the evolving demands of the digital commodity landscape.

However, as the launch of these institutional-sized contracts approaches on June 5, all eyes are on Coinbase Derivatives Exchange. 

Market participants eagerly anticipate these contracts’ benefits, including precise risk management, increased capital efficiency, and a more cost-effective trading experience. 

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Coinbase CEO Urges Smart Regulation To Secure America’s Global Financial Leadership

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The CEO of Coinbase, Brian Armstrong, recently emphasized the importance of recognizing the broader implications of cryptocurrency beyond its turbulent market performance. 

In an article, Armstrong argued that dismissing crypto as an unstable asset class would risk jeopardizing America’s position as a global financial leader and innovation hub. He urged policymakers and regulators to provide regulatory clarity, enabling consumer protection and unlocking the full potential of crypto.

Instead of supportive regulations, Armstrong expressed concern over the threats of enforcement actions. He cautioned that the United States, unintentionally, is driving crypto-innovation offshore by enforcing restrictive policies. 

This shift could compromise America’s pioneering legacy in technological advancements and weaken its national security posture.

Coinbase CEO emphasized that cryptographic blockchains are not solely limited to financial services but hold transformative potential across various sectors. Millions of people worldwide use these technologies daily to streamline interactions with traditional financial systems. 

Cryptocurrencies facilitate cross-border payments, protect against inflation, reduce fees and wait times, and democratize access to financial services, particularly in regions lacking equal opportunities. 

Notably, blockchain technology also provides a platform for creatives to monetize their work directly rather than being exploited on secondary markets.

Throughout history, the currency has embodied innovation, from the transition from bartering to coins as physical stores of value to portable paper currency enabling lending and investments. 

Coinbase CEO: Fintech, Democracy, & America’s Future

Today, America faces a new threat in the form of ambitious digital systems promoted by China. Chinese tech giants Alipay and Tencent offer integrated payment systems with direct access to a range of services. 

Recognizing the potential of cryptocurrencies to modernize finance and numerous other sectors, several traditional financial capitals, including the U.K., United Arab Emirates, Brazil, Japan, the European Union, Australia, and Singapore, are competing to become crypto hubs.

Armstrong believes that the nexus between financial technologies and democratic values is integral to America’s identity. He chose to base Coinbase in the U.S., highlighting the dissatisfaction of 80% of Americans with the current financial system and their concerns about the future well-being of their children. 

To prevent America from ceding its influence, Armstrong calls for smart regulation that safeguards consumers and fosters innovation, similar to the approach taken during the Internet Age.

Failure to act now could lead to a future struggle to bring back crypto and blockchain innovation to the U.S. Armstrong urges Congress to seize this historic opportunity and pass comprehensive legislation that stimulates the American economy and promotes democratic values worldwide. 

By modernizing the financial system and reaffirming the U.S.’s role as a global technology leader, America can avoid paying a hefty price in the future.

Brian Armstrong concludes by stating:

Let’s modernize our financial system and reaffirm our role as a global technology leader rather than abdicating it.

Related Reading | Crypto Clash: Coinbase Joins Lawsuit Against US Treasury Over Tornado Cash Sanctions

Coinbase Insider Trading Accused Settle Charges

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A former Coinbase product manager, Ishan Wahi, and his brother, Nikhil Wahi accused of insider trading have contended to settle charges with the U.S. Securities and Exchange Commission, according to the press release.

The Wahi brothers agreed, as part of the settlement, not to deny the SEC’s allegations. Speaking on the same, Gurbir S. Grewal, Director of the SEC’s Division of Enforcement stated;

“The federal securities laws do not exempt crypto asset securities from the prohibition against insider trading, nor does the SEC. I am grateful to the SEC staff for successfully working to resolve this matter.”

In July last year, the SEC filed a case against the Wahi brothers and their friend, Sameer Ramani, alleging that the trio amassed up to $1.5 million in profits from insider trading.

In a separate complaint filed on next day, the US agency said that nine of the 25 tokens reportedly traded in the scheme were securities.

The charges issued to Ishan Wahi were wire fraud, and conspiracy to commit wire fraud. Wahi, who worked on Coinbase’s asset-listing team, had prior knowledge of the timing and public announcements of assets the exchange planned to list.

He then proceeded to leak confidential Coinbase information with his brother Nikil Wahi and close associate Ramani under the garb of numerous crypto accounts and anonymous digital wallets.

The indictment claimed then that one of the defendants attempted to leave India the day before a scheduled meeting with the exchange, which led to the defendants’ eventual capture.

Ishan Wahi received a sentence of 24 months in prison and was required to pay 10.97 ether and 9,440 Tether after both brothers admitted guilt to the Department of Justice’s accusations of conspiring to commit wire fraud.

While Nikhil Wahi, his sibling, was given a 10-month term and had to forfeit $892,500. The SEC declared that the brothers’ fines from their criminal case satisfied the settlements in the civil case and that it would not pursue additional penalties.

Coinbase: SEC Dodges Once Again?

The SEC alleged that tokens such as AMP, RLY, and XYO constitute securities in its lawsuit against the Wahis, but it has not accused the creators of these tokens—or even Coinbase, the platform for their listing—of any wrongdoing relating to those tokens.

Although the SEC settlement was viewed as a “meaningful development for the industry”, crypto proponents feel the regulator failed to admit any legal conclusions about the security status of tokens.

Crypto Clash: Coinbase Joins Lawsuit Against US Treasury Over Tornado Cash Sanctions

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In a recent filing submitted on May 24, six individuals have put forth a series of compelling arguments in support of their motion to overturn the United States Treasury’s decision to sanction the popular cryptocurrency mixer, Tornado Cash. 

Coinbase, one of the leading cryptocurrency exchanges, has thrown its weight behind the lawsuit against the US Department of Treasury, joining forces with the six plaintiffs: Joseph Van Loon, Tyler Almeida, Alexander Fisher, Preston Van Loon, Kevin Vitale, and Nate Welch.

The plaintiffs assert that the case revolves around government overreach and a breach of First Amendment rights rather than carving out special rules for new technology.

The filing revealed that most of the group had prior interactions with Tornado Cash, emphasizing their personal stake in the matter.

Arguments Against Sanctions on Tornado Cash: Coinbase CLO

Coinbase’s Chief Legal Officer, Paul Grewal, took to Twitter to highlight the significance of the plaintiffs’ legal challenge against the imposed sanctions. Grewal urged readers to explore the reply brief filed by the individuals, which seeks to lift the designations imposed by the US Treasury.

The plaintiffs present four key arguments, all pointing to a common issue. They contend that the government is attempting to ban the usage of open-source software through property sanctions statutes, which were never intended for such purposes. Thus, they argue that the law does not align with the current case.

The plaintiffs’ first argument questions the assumption that anyone possessing the digital token TORN are automatically affiliated with the legally recognized entity known as “Tornado Cash.” They argue that this notion is legally untested and factually incorrect.

The second argument highlights that the law permits sanctions only on the property which can be owned. However, the nature of the privacy software’s underlying technology, comprising open-source and immutable smart contracts, makes it impossible to own, control, or alter anyone.

Moreover, the plaintiffs assert that no one, including the founders, developers, or individuals possessing TORN tokens, holds a property interest in these immutable smart contracts, forming the basis of their third argument.

Lastly,the Coinbase CLO stated that the plaintiffs claims the sanctioning of Tornado Cash violates the First Amendment by burdening speech. They argue that utilizing the software to protect privacy while engaging in essential free speech activities, such as making important donations, is constitutionally protected.

They express concerns over the government’s response, which suggests finding alternative venues for exercising freedom of speech with fewer personal protections.

It is important to note that the plaintiffs are not requesting special treatment for cryptocurrency; they insist that the government adhere to the basic legal requirements outlined by Congress. 

They emphasize the need for the government to meet these requirements before imposing a ban on a privacy tool that safeguards legal transactions and donations.

Nevertheless, as this legal battle unfolds, the outcome could have far-reaching implications for regulating cryptocurrencies and protecting individual rights in the digital age.

Related Reading | Coinbase Exchange Base L2 Unveils Criteria For Mainnet Launch, Prioritizing Safety And Security

Coinbase Exchange Base L2 Unveils Criteria For Mainnet Launch, Prioritizing Safety And Security

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Base, the Ethereum-based Layer-2 (L2) blockchain protocol affiliated with leading American crypto trading platform Coinbase, has unveiled the fundamental requirements that will guide its highly anticipated mainnet launch. According to a recent announcement from the official Twitter account of the Base protocol, the success of the mainnet launch hinges entirely on implementing robust safety and security measures.

In a departure from the conventional design models of most Layer-2 protocols, Base made an amazing revelation by stating that it does not intend to introduce a native token. Though not entirely novel, this announcement sets Base apart in the L2 landscape. The protocol acknowledged the entry of numerous innovative projects building on its platform since the launch of its testnet and expressed its intention to expand this ecosystem further over time.

Base Prioritizes Reliability And Scalability In Mainnet Launch Preparations

As part of its preparations for the mainnet launch, Base Protocol has dedicated significant efforts to audit its codebase and infrastructure thoroughly. This comprehensive evaluation ensures the protocol’s reliability and resilience. Additionally, the protocol has undergone rigorous load testing to ensure scalability and has extended support to @optimismFND’s Bedrock upgrade while prioritizing a seamless developer experience.

Since its testnet went live earlier this February, it has achieved two of the five criteria to determine its readiness for the mainnet launch. These accomplishments include the successful testnet Regolith hardfork and the completion of the infrastructure review in collaboration with the OP Labs team. However, the crucial milestone of upgrading the Optimism mainnet to Bedrock remains to be achieved.

Furthermore, Base is committed to finalizing its protocol audits, ensuring the absence of critical issues, and maintaining the stability of its testnet. Following the mainnet launch, the protocol will enter the Genesis Window, a period marked by Decentralized Applications (DApps) deployment. It has pledged to provide hands-on support to developers during this phase and plans to recognize early DApps launching on its platform.

The significance of Layer-2 protocols in the evolution of decentralized infrastructures cannot be overlooked as the blockchain ecosystem matures. In addition to Base, Shiba Inu is actively developing its own L2 solution called Shibarium, joining many initiatives to scale the Ethereum protocol. Post-launch, the Coinbase-linked protocol will also face competition from Arbitrum and Polygon zkEVM.

Layer-2 Protocols and the Future of Decentralized Infrastructures

Layer-2 protocols, including Base, play a vital role in scaling the Ethereum protocol and facilitating the growth of decentralized applications. It aims to establish itself as a secure and reliable L2 protocol, actively supporting developers and fostering innovation. The success of Base and other Layer-2 protocols will contribute to the maturation of blockchain technology.

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