Base, the Layer 2 blockchain built by Coinbase, is under fire from the crypto community after endorsing a newly minted token that crashed by 95% within hours of launch.
On Wednesday, Base published a post titled “Base is for everyone” on Zora, a decentralized social media platform where posts are automatically tokenized. The post was later shared on Base’s official X account, linking directly to the token’s page—effectively amplifying its exposure.
The endorsement fueled rapid speculation. At its peak, the token reached a market cap of over $17 million, driven by FOMO and fast-paced on-chain activity. But the hype was short-lived. Hours later, the token’s price collapsed by nearly 95%, wiping out more than $15 million in market value, according to Dexscreener data.
Although the token has since recovered most of its value, the episode has reignited debate about platform accountability in Web3—especially when major players like Base are involved in hype-driven releases.
Base Accused of Enabling Rugpull Amid Community Outrage
The crash of the “Base is for Everyone” token has triggered sharp criticism, with many users accusing Coinbase-linked Base of fueling a potential pump-and-dump scheme.
After Base’s public nod to the token, the asset soared in value—only to plummet within hours. Though the token has since rebounded, community backlash remains strong.
Users on X quickly labeled the event a rugpull, criticizing Base and Coinbase for lending legitimacy to what many saw as a memecoin trap. Abhishek Pawa, CEO of AP Collective, noted that the top three wallets controlled 47% of the supply and sold early—initiating the collapse.
“Base & coinbase’s next moves are critical, reputation depends on swift, decisive action,” he said.
Adding to concerns, blockchain analysts at Lookonchain reported that three wallets accumulated large amounts of the token before the Base post and later sold for a combined $666,000 in profit. The timing raised red flags about potential insider trading or strategic frontrunning.
Despite the controversy, the token’s market cap had recovered to around $17.4 million at press time.
Base Responds, Distances Itself from Token Launch
Facing mounting criticism, Base issued a statement clarifying that it did not create or launch the token. According to the team, the token was automatically generated via Zora’s platform after Base made an on-chain post—standard behavior under Zora’s tokenized content model. The token’s listing includes a disclaimer stating it is not affiliated with Base or Coinbase and warns users not to expect financial returns.
“There is a significant risk of losing all funds spent on them,” the description warns, adding that tokens are intended purely for entertainment and creative experimentation.
Zora’s metadata also shows that Base received 10 million tokens (1% of the total 1 billion supply) as the post’s creator. However, the team said these will not be sold, and all fees collected will fund grants for developers building on Base.
The statement aligns with Base’s ongoing “contentcoin” initiative, which aims to fuse content creation with blockchain technology to boost engagement and community-led innovation.
Quick Facts
- Base promoted a token that crashed 95% shortly after launch
- Its endorsement triggered a wave of investor losses and backlash
- Base said the token was auto-generated via Zora’s infrastructure
- The episode highlights risks of hype-driven promotions in crypto
