The Layer-2 network Base, backed by Coinbase, is under fire after a token it appeared to endorse — “Base is for everyone” — rapidly surged and then plunged 95% in value on Wednesday. The crash wiped out over $15 million in market cap before the token regained most of its value, sparking accusations of a “pump-and-dump” and severe miscommunication from the platform.
The token, minted automatically via Zora — an onchain social platform that tokenizes posts — was unintentionally promoted when Base posted the phrase “Base is for everyone.” The official Base X (formerly Twitter) account then followed up with a visual post linking directly to the token’s page, which fueled speculation and triggered a market cap surge to over $17 million.
But just as quickly, the token tanked.
Major Sell-offs Spark Controversy
According to blockchain data, three wallets acquired large portions of the token before the public post and collectively profited over $666,000, suggesting possible insider action. Web3 advisory firm AP Collective noted that the top three holders controlled nearly 47% of the supply, and their mass sell-off triggered the collapse.
This has deeply shaken trust within the crypto community, especially since Base is associated with Coinbase, a publicly traded company.
Base Responds: ‘Not an Official Token’
Base clarified that it did not launch or sell the token, emphasizing in an email to The Block that the risks were clearly outlined in the Zora platform’s disclaimer. The token was part of a broader “contentcoin” experiment designed to explore the tokenization of digital content.
Despite this, the official posts and lack of upfront explanation misled many. The Zora listing itself warns:
“This is not affiliated with Base or Coinbase. There is a significant risk of losing all funds… Purchase only for entertainment and creative purposes.”
What Is a Contentcoin?
Base and its creator Jesse Pollak continued promoting the concept after the crash, stating that “contentcoins” represent digital content where “the coin is the content and the content is the coin.” They announced similar tokenizations for other content pieces, including a poster for FarCon 2025.
Pollak framed the controversy as a public experiment:
“If we want the future to be onchain, we have to be willing to experiment in public.”
Community Pushback Over Communication Failures
While the concept has sparked interest, the execution received harsh criticism. Critics argue that Base failed to communicate the nature and risks of the experiment clearly, leaving retail traders exposed.
AP Collective CEO Abhishek Pawa summed up the sentiment:
“No clear upfront communication, traders left confused, expectations completely misaligned.”
Many users on X echoed similar frustration, pointing out that Base’s clarification came after the damage was done.
