Venture capitalist Arthur Cheong thinks Coinbase’s Ethereum (ETH) layer-2 scaling solution Base is primed to witness a surge in trading volume.

The DeFiance Capital CEO predicts on the social media platform X that on-chain spot decentralized exchange (DEX) volume on Base will flip Coinbase’s centralized exchange (CEX) volume “within six to 12 months.”

“Makes logical sense when you think about it, and it all comes together with the DeFi (decentralized finance) Renaissance thesis.”

Cheong believes Base is “the future of Ethereum.”

He also sees the DeFi sector surging alongside memecoins.

“Am I the only crazy one to think both DeFi Renaissance and memecoins supercycle can happen together?”

Base recently surpassed Arbitrum (ARB) to become the top Ethereum layer-2 scaler in terms of total value locked (TVL), according to the decentralized finance data aggregator DeFi Llama.

TVL refers to the amount of capital deposited within a protocol’s smart contracts and is often used to gauge the health of a crypto ecosystem.

Base currently clocks $2.45 billion in TVL, compared to $2.404 billion for Arbitrum. The only projects that register more TVL than Base are BSC (Binance Smart Chain), Solana (SOL), Tron (TRX) and Ethereum itself.

Coinbase launched Base last year. The top US crypto exchange says it does not currently plan to issue a network token for the layer-2 scaler.

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Coinbase is raising awareness about the rise of online scams targeting younger users, particularly Gen Z. 

In a blog post published on Oct. 8, Coinbase outlined four online threats Gen Z should be aware of, including social media fraud, romance scams, fake websites, and recovery schemes.

Coinbase emphasized that crypto users must take personal responsibility for securing their assets. Unlike traditional banking, where institutions provide a level of security, crypto owners control their assets directly, making them both their own safeguard and biggest security risk.

Social media scams

One of the major scams Coinbase warned about involves social media platforms like Instagram and TikTok, where fraudsters create fake profiles or impersonate well-known figures. 

Scammers often introduce seemingly legitimate investment opportunities to unsuspecting users, but these offers are rarely genuine. Coinbase advises users to be cautious of unsolicited messages from strangers promoting crypto investments.

A recent example of this scam took place in Vietnam, where five suspects involved in a crypto fraud network used social media to build fake romantic relationships and lure victims into investing in a fraudulent platform. 

The scammers defrauded victims of over 17.6 billion Vietnamese dong ($700,000) through their scheme.

Romance scams and fake websites

Another growing threat Coinbase mentioned is romance scams, often called pig butchering scams. 

Romance scams involve fraudsters befriending victims under the pretense of a potential love interest. These scammers pretend to form personal connections to gain victims’ trust and then exploit them financially. These schemes often occur on dating apps or social media platforms.

Scammers also use fake websites to trick victims into providing personal information or sending funds. Many of these sites mimic legitimate companies but have minor differences in their URLs.

Similarly, on Oct. 3, a U.S. citizen filed a lawsuit after losing $2.1 million in Bitcoin (BTC) due to a pig butchering scam involving fake crypto exchange websites. Just as Coinbase warned, the scammers operating from Southeast Asia used these fraudulent sites to simulate trading and steal funds from the victim. 

Boosting awareness and reporting scams

In 2023, over 67,000 online scams were reported, per Coinbase, with the median loss reaching $3,800. 

Coinbase stressed that raising awareness and reporting suspicious activity can help prevent others from falling victim to similar scams. The company encourages users to report scams to law enforcement and platforms like Coinbase to aid in the fight against cybercrime.

With crypto ownership comes responsibility, and Coinbase’s message to Gen Z is clear: Stay vigilant, know the risks, and help protect the community from fraud.

Referencing the SEC’s latest appeal, American cryptocurrency exchange Coinbase have requested that the court revisit its motion for interlocutory appeal. Notably, the US SEC may have shot itself in the leg by appealing Judge Analisa Torres’s July 13, 2024 ruling in favor of Ripple.

Coinbase Seek to Probe Howey Test Clause

According to the document adressed to Judge Katherine Polk Failla, Coinbase has asked that its pending motion to certify interlocutory appeal be granted. The trading platform first filed this motion for interlocutory appeal in April. At the time,the crypto exchange wanted to review a key question in the case: how the Howey Test, the traditional standard for what counts as a security based on a 1946 Supreme Court ruling, applies to digital assets.

The exchange believes that making this request once again will help provide the Second Circuit with a complete picture to better adjudicate the agency’s position on the Howey Test. It is specifically interested in the application of this test to secondary market crypto transactions.

Attorneys representing Coinbase have argued that the SEC’s appeal in Ripple’s case is an admission that the criteria listed in the SEC’s Howey Test were ambiguous and warranted closer examination. They are also of the opinion that the appeal demonstrates how important the application of the Howey test is. Therefore, the exchange wants its case with the agency looked into.

In April, the agency also filed its motion, requesting that Coinbase’s request be denied. It cited the lack of substantial ground for difference of opinion. Until now, Judge Failla is yet to rule on both requests. While Coinbase may have a stronger argument this time around, there is no guarantee that the court will rule in its favor.

SEC Tactics Keep Crypto Community in Suspense

Though it look like Ripple is receiving more heat from the SEC, its lawsuit with the agency is setting precedence for other crypto lawsuits. It is not yet clear if the SEC will go home victorious in the end. However, many pro-crypto lawyers think the Commission does not stand a chance.

The SEC named Ripple CEO Brad Garlinghouse and Chris Larsen, a co-founder, as appellees in the appeal filing. This move has gotten many XRP community members talking, with many wondering what the SEC is up to. The days following the appeal hearing will come with a lot of suspense as the ecosystem await the verdict.

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.