“Base is for Everyone” Token Plummets 95% Following Launch on Base Blockchain

Summary

• The token, created by the team behind Coinbase’s Base blockchain as an experiment on Zora, experienced a dramatic 95% price crash shortly after launch, following an initial surge in value.

• Insider Trading Accusations Emerge Due to Pre-Launch Token Acquisition: Analysis revealed that some wallets received tokens before the public announcement and profited significantly by selling at the peak, leading to accusations of insider trading within the crypto community.

• Base Project Disclaims Responsibility, Citing “Experimental” Nature and User Risk: The Base team clarified that the token was experimental, not an official cryptocurrency, and issued strong warnings that investors could lose all their funds, emphasizing it was for “creative and entertainment purposes only,” while distancing themselves from any financial liability.

Experimental Token Created by Coinbase-Linked Team Faces Accusations of Insider Trading After Price Collapse

Rapid Surge and Dramatic Crash of Experimental Token

An experimental cryptocurrency token, ironically named “Base is for everyone,” experienced a dramatic collapse, plummeting by 95% shortly after its launch.

The team behind Base, a blockchain associated with the cryptocurrency exchange giant Coinbase, initiated this token as a project on the Zora platform.

The token’s value imploded following an initial rapid price surge, and allegations of insider trading quickly surfaced within the cryptocurrency community.

Project Team Distances Itself, Citing “Experimental” Nature

The Base project team has characterized the token as an experiment involving the tokenization of an image bearing the inscription “Base is for everyone.” They have explicitly stated that they bear no responsibility for any financial losses incurred by users who invested in the volatile asset.

Pre-Launch Token Acquisition and Profit-Taking Spark Insider Trading Claims

On April 16th, the Zora content tokenization platform launched the “Base is for everyone” token.

Blockchain analytics firm Lookonchain reported that suspicious trading activity occurred prior to the official announcement.

According to their analysis, three specific cryptocurrency wallets received tokens before the public release, subsequently selling them after the price spiked, netting a combined profit of $666,000.

Tokenization Process and Blockchain Context

The token’s creation stemmed from a post made by the Base project featuring the phrase “Base is for everyone” on an image.

Zora’s platform automatically tokenized this content, resulting in the creation of the cryptocurrency.

Base itself is a layer-2 blockchain built on Ethereum, launched by Coinbase in August 2023 and publicly traded on NASDAQ.

The Base network provides infrastructure for decentralized finance (DeFi) applications, decentralized exchanges (DEXs), lending platforms, and the creation of various crypto assets, including non-fungible tokens (NFTs).

Market Capitalization Volatility and Early Investor Gains

Following announcements on the social media platform X, the market capitalization of “Base is for everyone” rapidly ascended to $17 million.

However, this valuation proved fleeting, as the market cap swiftly contracted to approximately $1 million.

Investigations revealed that certain addresses acquired the token before the public announcement and realized substantial profits before the token’s precipitous decline.

Lookonchain’s analysts highlighted the activity of “three wallets [that] purchased large quantities before Base’s post was published and then sold them, earning about 666,000 dollars.”

Partial Price Recovery Follows Major Downturn

After experiencing a nearly 95% drop, the price of “Base is for everyone” has demonstrated a degree of recovery.

By 11:00 a.m. on the day of the incident, the token’s market capitalization had rebounded to around $14 million, according to data from Dexscreener.

Community Backlash and Project’s Clarification of Token Status

The drastic price fluctuation and the allegations of insider trading triggered criticism from the cryptocurrency community directed at the Base project.

In response, the Base team issued clarifications regarding the “Base is for everyone” token.

They emphasized that this token, launched on Zora, is not an official cryptocurrency endorsed by the Base network, Coinbase, or affiliated entities.

They stressed that it is not traded on the Base network or Coinbase and was intended purely for experimental and cultural purposes.

Also Read: Base Token Crashes After Launch Coinbase Denies Official Status

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