[DigitalToday reporter Yoonseo Lee] Coinbase engineering vice president Jesse Pollak (제시 폴락) moved to directly rebut market criticism that Coinbase is selling Ethereum (ETH).

On Aug. 22, local time, blockchain outlet Cryptopolitan reported that Pollak wrote on X, formerly Twitter, that claims Coinbase is dumping large amounts of ETH should be weighed against the company’s holdings and its contributions to the Ethereum ecosystem.

The controversy began after a user said hostility from the Ethereum community toward Coinbase was misdirected. Pollak agreed and said he did not understand why Coinbase was being attacked over ETH sales.

The core of the criticism centres on Base, the layer-2 network run by Coinbase. Coinbase operates Base’s sequencer, ordering and processing transactions. Fees generated in the process come in ETH, but outsiders view the revenue as being converted into dollars or bitcoin. That is why some say Coinbase is putting price pressure on ether rather than increasing its value.

Some investors criticised Coinbase for stockpiling bitcoin on its financial statements while treating ether like an operating asset. One user also pushed back against an assessment that Coinbase’s value aligns with Ethereum, saying the company’s value also reflects selling ETH received as Base execution fees into dollars, bitcoin (BTC) and other assets.

Pollak stressed overall holdings rather than individual transactions. He said Coinbase holds more ether than anyone else excluding DAT, or digital asset treasury companies. He added that Coinbase has held 150,000 ETH for years and kept holding through shifting market cycles and changing narratives around layer 2.

The data broadly align with that claim. Strategic ETH Reserve estimates Coinbase currently holds about 151,180 ETH, valued at about $256 million. It ranks sixth by holdings, but companies above it include firms such as BitMine that accumulate ETH as a treasury strategy. Pollak cited this to argue that viewing Coinbase simply as a seller does not fully reflect reality.

Pollak also focused on ecosystem contributions, not just holdings. He mentioned that Coinbase contributed to the adoption of EIP-4844, an upgrade that lowered layer-2 costs, and played a role in the launch of major stablecoin USDC. He also said Coinbase brought millions of users to Ethereum and said that expansion effect matters more than a single treasury decision.

Base’s current standing is also part of the backdrop. Launched in 2023, Base has grown into one of the most active layer-2 networks on Ethereum. It has recently reached a stage 1 decentralisation milestone, reducing Coinbase’s direct control over chain operations compared with before.

Ultimately, the clash is largely a difference in views on whether Coinbase is a key contributor to the Ethereum ecosystem or a practical operator that shifts fee revenue into other assets. Coinbase points to its large ETH holdings and technical contributions, while critics question the flow of funds from Base revenue and treasury priorities. The market is expected to watch how Coinbase’s ETH holding strategy and its handling of Base revenue affect trust in the Ethereum community.

it blows my mind that people attack coinbase for "selling ETH" when it is the largest non-DAT holder of ETH by an order of magnitude, is one of ethereum's biggest customers with @base, has led and contributed to big amounts of EVM+ETH roadmap devleopment, and has introduced…