Coinbase’s Layer 2 network, Base, is facing intense scrutiny after what appeared to be a pump and dump. The project posted content that automatically minted as a “content coin” through Zora, an onchain social network.
This triggered a speculative surge for the “content coin,” driving the token’s market cap to an estimated $15 to $20 million within hours of launch. The token quickly plummeted near zero in minutes.
Did Base Just Help Fuel a Pump and Dump?
Base’s tweet, which featured promotional imagery and direct links to the coin on Zora, created the perception of legitimacy. Traders piled in, and price charts reflected an explosive rally—followed by an equally sharp collapse.
Within one 4-hour trading window, a green candle representing millions in inflow was immediately reversed by a red candle of equal size, marking a total loss of liquidity and users alleging a pump and dump.
The token’s value fell by more than 99%, and trading volumes on Uniswap surged past $13 million during the brief window of activity. The token has since made a slight recovery.
There is massive ongoing outrage against both Coinbase and Base. Crypto influencers have called the incident a failure of communications strategy.
Accusations of incompetence and poor risk oversight are spreading fast on social media, while memes mocking the network’s “Base is for everyone” slogan are everywhere.
However, Base developers have come in defense of the incident.
“This wasn’t a memecoin. This wasn’t a token launch. Base didn’t drop a coin to pump bags or flip the market. This was a content coin — and that distinction matters,” Base developer Charis posted on X.
She further explained that unlike traditional memecoins, which are often fueled by hype and speculative fervor, content coins represent something more “meaningful.”
“So if you bought in thinking this was your next moonshot, and it didn’t take off — that’s not a rug, that’s a misread,” Charis added.
Meanwhile, Base founder Jesse Pollak also tried to explain how content coins work.
“[Content coin] represents a single piece of content and it’s created in a context where the expectation is set that the coin is the content and the content is the coin — no more, no less. this can be done by coining on a specific platform (e.g.@zora) or maybe setting the norm (e.g. reply clankers),” Pollak wrote on X.
Supporters of Base are also flagging the disclaimer on Zora that clearly said “Base is for everyone” is not an official Base token.
“This and future coins on Zora are not an official network or protocol token for Base, Coinbase, or any other related product. They are created solely for artistic and cultural purposes as collectibles, not as investments or financial instruments,” the disclaimer showed.
He also added that the problem is with market perception and misunderstanding about how content coins should be valued.
“Someone has to normalize putting all of our content onchain. And i’m not afraid for it to be us. why? because in the wake of the chaos, we’ll normalize the behavior and create a better future for creators,” Pollak stated on Twitter.
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