3 days ago
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The event triggered widespread backlash, sparked debates about ethics in token promotion, and raised questions about insider trading in the crypto space.
Launched on April 16 via the on-chain platform Zora, the token was promoted on Base’s official X account alongside a message that read, “Base is for everyone.” Shortly after, the token’s value skyrocketed, driven by interest from traders interpreting the post as an endorsement by Base. However, the euphoria was short-lived, as the token plummeted in value just 20 minutes later, wiping out over $15 million.
Insider Activity Raises Eyebrows
On-chain analytics platform Lookonchain identified three wallets that bought large amounts of the token before Base’s public post, later selling their holdings for a combined profit of approximately $666,000. One wallet turned a $1,577 investment into $267,000. This sparked suspicions of insider activity and led to criticism that the token’s launch lacked transparency and fairness.
The BASE token hyped on Base’s official page soared and then rugged in just five minutes, leaving traders stunned. Source: dethective via X
Abhishek Pawa, CEO of Web3 advisory firm AP Collective, commented on X, “The top three holders dumped almost immediately. This wasn’t just an experiment gone wrong—it was a breach of trust.”
Base Responds: “This Was an Experiment”
In response to the criticism, Base clarified that it did not officially launch the token, nor does it plan to sell it. A Base spokesperson said, “Base did not launch a token… this is not an official Base token.” According to the team, the token was automatically minted by Zora, which turns posts into tokens as part of its platform design.
Base says it’s experimenting publicly by bringing culture onchain through Zora, emphasizing the tokens aren’t official and will never be sold. Source: Base via X
Base framed the initiative as a creative experiment to test the emerging idea of “content coins”—tokens that represent digital content like memes, art, or cultural moments. The intention, they said, was to explore how content can be brought on-chain for artistic and cultural expression, not speculative trading.
“There is a significant risk of losing all funds spent on them,” the token’s description on Zora warned, stating that purchases should be made only for entertainment purposes.
A Recovering Market, But Lingering Doubts
Despite the initial collapse, the token has recovered much of its lost value. As of press time, its market cap sits around $16–17 million, with trading volumes exceeding $39 million. However, many in the crypto community remain unconvinced by Base’s explanations.
Critics argue that the team’s messaging came too late. X user @Clark10x said, “You should have posted this before or immediately after under the buy link and this anger would be, for the most part, voided.” Others viewed the move as irresponsible, given Base’s visibility and association with publicly traded Coinbase.
Pump.fun co-founder Alon Cohen also weighed in, saying, “If you launch a coin AND have social influence, that comes with responsibility.”
The Content Coin Debate
Base creator Jesse Pollak and contributors like Nkechi doubled down on the concept of content coins, saying these tokens are about “vibes, not value.” Nkechi wrote, “Content coins are not built on speculation. They’re built on meaning. It’s expression onchain, not expectation.”
Three wallets made a combined $666K profit by buying “Base is for everyone” tokens before Base’s post and selling after the surge. Source: Lookonchain via X
While the idea of tokenizing culture has merit in Web3, the execution has drawn criticism for being poorly communicated and tone-deaf to the realities of today’s trading environment. Some called it a rushed experiment that confused speculation with artistic expression, leaving retail investors burned.
What’s Next for Base?
The controversy has fueled a broader conversation about the responsibility of blockchain networks—especially those with strong brand recognition like Base and Coinbase—in promoting and experimenting with on-chain assets. Although the project insists it will never sell the tokens or profit from them, the incident underscores the need for better communication, disclaimers, and safeguards when blending internet culture with crypto.
As Base continues its push to turn content into coins, the crypto community will be watching closely. The experiment may have sparked a new category of on-chain assets, but it has also left a cautionary tale in its wake.
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