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crypto.news 2025-04-17 09:00:22

Base faces backlash after meme token launched via Zora crashes 95% before recovering

Base faces backlash after meme token launched via Zora crashes 95% before recovering

Base, the layer-2 blockchain backed by Coinbase, is facing criticism after a token it promoted crashed 95% shortly after launch before bouncing back. On Apr. 16, Base made a post on Zora, an on-chain social app that automatically turns posts into tokens. The post said, “Base is for everyone.” Minutes later, the official Base X account shared the same message with a reply linking to the Base for everyone token page on Zora. The token surged quickly, hitting a $17 million market cap. But it soon plunged by 95%, wiping out over $15 million in value. Base is for everyone. pic.twitter.com/gq3lLLuXO1 — Base (@base) April 16, 2025 The sharp fall led to immediate backlash on X, with critics accusing Base and Coinbase of pushing a risky memecoin. Insiders, who held nearly half the token supply, dumped their tokens after Base’s post boosted interest, leading to the steep decline. Lookonchain later flagged what appears to be insider transactions. Three wallets bought large amounts right before Base’s post and sold after, pocketing over $666,000 in profits. 3 wallets bought a large amount of "Base is for everyone" before @base posted and sold them, making a profit of ~$666K. 0x0992 spent 1.5 $ETH ($2,370) to buy 256.39M "Base is for everyone", and sold all for 108 $ETH ($170.4K), making $168K. https://t.co/1QSP9LDMF8 0x5D9D spent 1… pic.twitter.com/1lrSydphxP — Lookonchain (@lookonchain) April 17, 2025 You might also like: Media Network crypto crashes 60% as trading halts on Coinbase Base responded to the backlash with a public statement on X. Although the token appeared to be publicly endorsed by Base, the project clarified that it was not an official network token for Base or Coinbase . Instead, the token was part of a creative experiment on Zora to bring content on-chain. The team said it wants to explore tools that help share memes, moments, and culture openly. “If we want the future to be onchain, we have to be willing to experiment in public,” the team wrote. They added that Base “will never sell these tokens” and that the content shared is meant to support on-chain creativity and culture. Base is posting on Zora because we believe everyone should bring their content onchain, and use the tools that make it possible. Memes. Moments. Culture. If we want the future to be onchain, we have to be willing to experiment in public. That’s what we’re doing. To be clear,… — Base (@base) April 16, 2025 Despite this, many in the crypto community felt misled. Some said Base should have communicated more clearly before the token went live. Base continues to post about “contentcoins,” its experiment in tokenizing digital content. However, many traders remain skeptical, calling for more responsibility from major platforms. According to the token’s page on Zora, “Base is for everyone” has a market cap of $13 million and a 24-hour trading volume of $37 million as of press time. The token creator has earned over $74,000 from trading activity and Zora’s creator rewards. Read more: Synthetix’s sUSD stablecoin falls below $0.8 despite peg recovery measures

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https://www.digistore24.com/redir/325658/ceobig/
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