A member of Layer 2 Scaling Solution Base has rejected rumors that its Sequencer Coinbase has sold Ether (ETH).

“Coinbase has accumulated $ 300m+ in ETH, which is more than 2x whole Base’s ETH earnings over time,” said basic member Kabir.Base.eth on x Sunday. “Base and Coinbase have and continue to keep ETH and publicly reveal our long -term possessions (100k ETH+, $ 300m+).”

Kabir added that base uses detention of custody of security and audit reasons (that’s why funds move to coinbase), and emphasize that Ethereum Layer 2 solution earns and uses as much as possible in ETH, uses it for layer 1 – costs and provides support. Coindesk reached Coinbase for a comment on the matter.

Kabir’s comments came after pseudonymous observer Santisa said Base has transferred all Sequencer fees to Coinbase since its debut, and Sequencer has probably sold these coins.

Coinbase is reportedly the only Sequencer node on the base that sequences and ends transactions in a specified order and improves transaction flow (speed). Coinbase charges a fee, collected in ETH, for this Sequencer role.

Santisa’s Take Echoed Sonic Labs -Basic other Cronje’s concerns about the use of centralized Sequencers in LAG 2 solutions leading to profit models that do not fully match the wider Ethereum values.

Essentially, while LAG 2 scaling solutions earn a significant income from transaction fees, they send a small part of it to Ethereum Mainnet for data availability and security purposes. In other words, most fees collected in ETH are either detained or read on the market, reducing the fees and associated ETH burning on the mainnet. It has a negative impact on ETH’s supply.

“L2S is the reason why Ethereum is again inflationary. Scale Ethereum. They can get Sonic Tech for free. 0 charging. Will 1000X their flow,” Cronje said at X.