{"id":48054,"date":"2026-07-18T09:39:44","date_gmt":"2026-07-18T09:39:44","guid":{"rendered":"https:\/\/cryptomag.finance\/?p=48054"},"modified":"2026-07-18T09:39:44","modified_gmt":"2026-07-18T09:39:44","slug":"coinbase-admits-trust-gap-as-base-faces-crypto-backlash","status":"publish","type":"post","link":"https:\/\/cryptomag.finance\/?p=48054","title":{"rendered":"Coinbase admits trust gap as Base faces crypto backlash"},"content":{"rendered":"

The controversy regarding Base\u2019s loss of credibility in the crypto community has now moved into the higher levels of Coinbase, creating doubts that go beyond social media. This controversy is important because today Base isn\u2019t just another layer-2 blockchain anymore. Now it is processing more of the onchain stablecoin volume than any other blockchain and is also securing $11.61 billion in total value, as per L2BEAT, thus making it one of the main infrastructure pieces of the industry.<\/strong><\/p>\n

The conversation took place on X on July 18, after a crypto trader named Rune (@RuneCrypto_) had a chat with Cobie, who has just assumed the lead of the Coinbase Base application, regarding the reasons why users should pick the application. Cobie responded to Rune\u2019s key concern that Coinbase has often been \u201ca little bit in an ivory tower and a little bit distant from users,\u201d especially those who are into crypto-centric businesses.<\/p>\n

Coinbase admits trust gap<\/h3>\n

Coinbase\u2019s admission marks a major transformation in the company, which recently reported a record high of 8.6% of the total crypto trading volume in the world as of Q1 2026. By admitting the gap<\/a> between them and the users driving onchain adoption, the company is trying to win back the trust of the crypto sector.<\/p>\n

Rune expressed doubts. In a X post<\/a>, he described Coinbase as \u201ca consumer app that doesn\u2019t care about their consumers\u201d and went on to say that recent developments have proved that \u201cbelieving in anything @base-related for more than 24 hours is a mistake.\u201d The two messages received hundreds of likes, which indicates that Rune was not the only one seeing things that way.<\/p>\n

\n

I took over the baseapp a few days ago yeah (as well as trading products in Coinbase \u2013 the Coinbase app, Advanced trading, etc). I don\u2019t run Base chain.<\/p>\n

I think that typically CB has been a little bit in an ivory tower and a little bit distant from users, particularly crypto\u2026<\/p>\n

\u2014 Cobie (@cobie) July 18, 2026<\/a><\/p><\/blockquote>\n

Cobie made sure to say that the application should not be confused with the blockchain technology. Currently, he is in charge of the Base consumer app and the trading products for Coinbase but insisted that he is not involved in the workings of the actual Base network.<\/p>\n

Jesse Pollak is still in charge of the operations of the Base network. On July 16, Pollak announced that he would be handing the consumer app over to Cobie, so that he could focus on Base, which he calls the biggest chance ever to build a blockchain for the global financial system.<\/p>\n

The change in leadership came after a difficult quarter. Just a day earlier, Pollak had remarked that the quarter had been \u201ca punch in the face\u201d and had unveiled his plans for the company, which would entail trading, a payment function, and AI agents. Moreover, he has acknowledged that Base is not successful in its foray into social apps and thus the project will now be focusing on its other activities which have potential in the longer run.<\/p>\n

Armstrong already conceded the misstep<\/strong><\/h3>\n

Brian Armstrong, the chief executive officer of Coinbase, admitted that the organization has made a mistake before the latest developments.<\/p>\n

Armstrong talked about the failure of the \u201ccontent coins<\/a>\u201d project of Base on July 13, saying, \u201cWe have messed up, time to turn the page.\u201d According to him, the company shifted the focus away from the project at the beginning of the year and now prioritizes trade, payments, and AI agents.<\/p>\n

His remarks mirrored Pollak\u2019s assessment and seemed to indicate that Coinbase executives are united in their desire to move past the previous strategy based on social media. But whether this reset will lead to renewed confidence will depend more on execution than on public relations.<\/p>\n

Why the dispute matters<\/strong><\/h3>\n

For the larger cryptocurrency market, what is more important is how Base is growing as a player in on-chain finance. In its Q1 2026 letter to shareholders, Coinbase noted that Base handled 62% of the global on-chain stablecoin transaction volume\u2013more than the total volume of all other blockchains together. The firm also said that Base processed above 90% of the global on-chain stablecoin volume with regard to agentic stablecoins, while the volume of stablecoin trades on Base grew tenfold compared to the previous year.<\/p>\n

The mentioned numbers make Base one of the key settlement layers in the industry. A blockchain with such a huge volume of stablecoin transactions benefits from the confidence of developers, liquidity providers, and crypto-savvy users responsible for creating applications and transferring money in the networks. Any evidence of lack of trust in Base would have an impact beyond the limits of Coinbase.<\/p>\n

Additionally, the discussion takes place while Base is dealing with another technical milestone. Currently, L2BEAT credits the network with the designation of a Stage 1 optimistic rollup, although it is likely to come down to Stage 0 in roughly 30 days due to its proof system not complying with the upcoming trusted-setup requirements.<\/p>\n

While the governance review is not connected to the public row, they do raise the same issue of whether Base is capable of enhancing its technical roadmaps as well as the ties with the cryptocurrency community as it develops further. In the next days, we will be able to see whether Coinbase\u2019s new approach towards crypto-native clients brings about certain product improvements and whether the anticipated L2BEAT reclassification proceeds as expected.<\/p>\n

The smartest crypto minds already read our newsletter. Want in? Join them<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

The controversy regarding Base\u2019s loss of credibility in the crypto community has now moved into the higher levels of Coinbase, creating doubts that go beyond social media. This controversy is important because today Base isn\u2019t just another layer-2 blockchain anymore. Now it is processing more of the onchain stablecoin volume than any other blockchain and […]<\/p>\n","protected":false},"author":1,"featured_media":48055,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"footnotes":""},"categories":[],"tags":[],"class_list":["post-48054","post","type-post","status-publish","format-standard","has-post-thumbnail"],"yoast_head":"\nCoinbase admits trust gap as Base faces crypto backlash - Cryptomag<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptomag.finance\/?p=48054\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Coinbase admits trust gap as Base faces crypto backlash - Cryptomag\" \/>\n<meta property=\"og:description\" content=\"The controversy regarding Base\u2019s loss of credibility in the crypto community has now moved into the higher levels of Coinbase, creating doubts that go beyond social media. 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