Jesse Pollak, vice president of engineering at Coinbase and the executive behind its Base layer-2 network, publicly pushed back this week against accusations that the exchange has been dumping Ethereum. In posts on X, he described the criticism as misplaced and positioned Coinbase as a major long-term holder and contributor to the Ethereum ecosystem.

The exchange of views began after an Ethereum community member argued that resentment toward Coinbase was badly misplaced, comparing it to a business turning against its largest customers. Pollak agreed, stating it “blows my mind” to see Coinbase attacked over ETH sales. Critics quickly countered that the company’s values include converting ether earned from Base execution and sequencer fees into U.S. dollars and bitcoin.

Holdings and the Non-DAT Claim

Pollak centered his defense on scale rather than individual transactions. He said Coinbase is “the largest non-DAT holder of ETH by an order of magnitude,” referring to entities that are not dedicated digital-asset-treasury vehicles. He added that the company had held approximately 150,000 ETH for years through market cycles and shifting narratives about layer-2 networks.

Public trackers list Coinbase with roughly 151,180 ETH, valued at about $256 million. The company’s own SEC filing shows its corporate ether treasury at 150,279 ETH as of June 30, 2026, down slightly from 151,175 ETH at the end of 2025. Over the same period its bitcoin treasury rose 12.5 percent, from 15,389 BTC to 17,311 BTC.

Dedicated treasury firms hold far larger amounts. One such company is reported to hold more than 5.5 million ETH. Pollak’s comparison excludes those specialized vehicles. Separate tracking places the volume of ether Coinbase custodies for customers and institutional clients near 4 million ETH, a figure distinct from its corporate balance-sheet position.

Sequencer Fees and Balance-Sheet Criticism

Much of the criticism focuses on Base. Coinbase operates the network’s sequencer, which orders and processes transactions and collects fees in ether. Critics say those fees are routinely converted into dollars or bitcoin, treating ether as an operating asset rather than a long-term holding. Some community members have noted that the company has grown its bitcoin position on the balance sheet while its ether count has remained relatively flat despite sequencer revenue flowing through its systems.

One commenter linked the pattern to an earlier observation that a large share of Coinbase’s revenue has historically come from bitcoin trading and holding activity. Pollak did not engage the specific fee-conversion claims in detail, instead pointing to the overall size of the company’s position and its multi-year holding period.

Ecosystem Contributions Cited in Defense

Pollak broadened the discussion beyond treasury numbers. He credited Coinbase with contributing to EIP-4844, the upgrade that introduced blob data and lowered costs for layer-2 networks. He also noted the company’s role in the creation of USDC, one of the largest stablecoins, and its efforts introducing millions of users to Ethereum through Base.

Base launched in 2023 and has become one of the busiest Ethereum layer-2 networks. It recently reached Stage 1 decentralization, a milestone that reduces Coinbase’s direct operational control over the chain. Pollak framed these efforts as evidence that the company’s incentives remain aligned with Ethereum’s growth, arguing that user reach and protocol contributions outweigh any single balance-sheet decision.

The debate continues among Ethereum users and investors over how much loyalty the community can expect from the large exchanges and infrastructure providers built on the network. Pollak maintained that sustained criticism of major customers risks pushing them away, while the company has not issued a formal statement beyond his posts.