Hey kids! Have you heard of Coinbase's Base, a super-fast way to use Ethereum? Recently, there were questions about what Base does with its money. Some people thought Base was selling its Ethereum (ETH), a type of cryptocurrency like digital money. But Base says that's not true!
- Base makes money by helping people use its network (like charging a small fee).
- Some people worried Base wasn't being clear about what it does with this money.
- Base explained they keep much of their money in Ethereum and use it to improve their network.
| Fact | Number |
|---|---|
| Base's profit margin | ~90% |
| Estimated profit | Over $100 million |
| Coinbase's ETH holdings (approx.) | Over 100,000 |
Basically, it's a bit like a school club earning money from selling cookies and then using that money to buy more ingredients or to support school activities instead of keeping it. The situation is a little complicated and involves 'off-chain' transactions which are basically keeping the money in a secure place until it is needed. While there were initial concerns, Base is assuring everyone that they aren't just selling everything for cash.
