Coinbase’s Layer-2 network, named Base, has received significant criticism due to accusations of rug-pulling following its endorsement of an unauthorized meme token. The token subsequently plummeted by more than 90%, igniting a discussion about the future of meme coins and content on the blockchain, as well as the responsibilities that platforms like Coinbase may have in such situations.
The Rise And Fall Of Base’s Unofficial Memecoin
On Wednesday, the official account of Base (X) shared an image accompanied by the message “Everyone is welcome at Base.” Soon after, they also posted a link to the decentralized social protocol Zora on the blockchain, along with the phrase “I’ve coined it,” which ignited a flurry of excitement among investors.
The system enables users to convert their social media content into tradeable digital assets, instantly creating these new tokens. Following Base’s post being transformed into a token, the cryptocurrency market enthusiasts rapidly boosted its market value to an impressive $17 million.
Initially launched, the memecoin experienced a dramatic drop of approximately 92%, as revealed in online reports. This steep decline was likely due to the fact that the largest holders, controlling about 47% of the total supply, swiftly sold off their memecoins within an hour after its launch.
Some individuals within the community expressed dismay as they felt the token was “suddenly taken” or “swiftly grabbed,” while the data analysis platform Lookonchain pointed out that three wallets purchased a significant amount of ‘Base is for everyone’ before it was posted, subsequently selling them after Base posted, earning approximately $666,000.
Consequently, the team behind the network faced criticism over the memecoin, being labeled as a “rug pull” by the community. They were urged to halt the creation of tokens with no value, as they would ultimately decline to zero. The critics argued that these actions tarnished their brand and devalued their genuine base assets.
According to Zora’s data analysis, it appears that Base managed to make approximately $81,000 from its memecoin investment. After an initial drop in value, the coin saw a significant rise with a maximum market capitalization of about $26 million. However, it has since retreated and now sits within the range of $9 million to $10 million.
Base’s Public Experiment
In response to the criticism, Base made it clear that they have no intention of selling their assets, however, it’s important to note that they aren’t associated with an official network token either. The team stated that they chose to post on Zora as they firmly believe in the idea that all content should be stored on a blockchain and utilize the tools designed for this purpose.
Embracing the realms of memes, shared experiences, and societal trends, we advocate for a digital future anchored by blockchain technology. To achieve this vision, we must be open to testing novel ideas in the limelight. This is precisely what we’re embarking on.
It’s important to clarify that these tokens will never be sold, and they do not represent official network tokens for Base, Coinbase, or any related product. The material we distribute is imaginative, and our commitment remains to continue merging culture with the digital world.
Discussions about meme-based cryptocurrencies and on-chain content erupted following the public testing of blockchain experiments, with Jesse Pollak, the founder of Base, sharing his thoughts on the matter.
Over several posts, Pollak clarified that “each coin is unique,” delineating the distinct characteristics of these two categories of digital assets.
Is On-Chain Content The Future For Creators?
Based on his posts, a ContentCoin refers to an individual unit of content that holds unique worth and carries no preconceived notions. It’s also possible for one person to generate several of these pieces. Notably, larger ones could theoretically evolve into popular internet memes.
Instead, a memecoin can be considered as “a collection of content,” carrying accumulated worth and high anticipation. The creator is typically advised to produce just one. Additionally, he pointed out that larger ones tend to evolve into full-fledged projects.
According to Pollack, “it’s important that someone establishes the practice of moving all our content onto the blockchain, and I am not hesitant if it is us. Why? Because after the turmoil, we will make this behavior commonplace and build a more prosperous future for creators.
Despite this, many users continue to harbor doubts, even as members within the community voice criticism regarding Base’s announcement about investors having the opportunity to mint a deleted scene from “Vitalik: An Ethereum Story” documentary. This particular scene features the project’s founder, Vitalik Buterin, revealing the contents of his backpack.
In simpler terms, the user pointed out that when almost everything is viewed primarily as a financial investment, it often becomes apparent that many things have little inherent value.
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2025-04-18 12:16