Summary
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Coinbase’s Base blockchain, previously committed to not having a native token, is now linked to the launch of “BASEISFOREVERYONE,” a memecoin, prompting user confusion and accusations of backtracking on earlier promises. This highlights the core contradiction and the surprise token launch.
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The newly launched memecoin experienced extreme volatility, with an initial brief rally followed by a rapid 88% and then a further 94% crash, leading to concerns of a “rug pull” and significant financial losses for investors. This focuses on the dramatic price action and the negative consequences for users.
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Despite promoting the token launch through official Base channels, Coinbase denies it is an official “Base token,” claims it was automatically generated content, and distances itself from responsibility amidst user complaints and past assurances of no token issuance. This summarizes Coinbase’s response and attempts to clarify their position while emphasizing the conflict with previous statements.
Coinbase is disavowing any connection to the recently launched token associated with its Base blockchain, despite the platform’s previous emphasis on remaining token-free.
Base, the Ethereum Layer-2 network backed by Coinbase, which had distinguished itself by declaring it would not introduce a native cryptocurrency, has now been linked to the emergence of such a digital asset.
Memecoin Launch and Swift Market Collapse
The unveiling of the “BASEISFOREVERYONE” memecoin triggered an initial surge in value, lasting approximately two hours.
This enthusiasm was short-lived.
The token’s price experienced a dramatic collapse, plummeting 88% within a mere two minutes.
This volatility escalated further around 4:30 PM when market activity suggested a “rug pull” scenario.
In a rapid seven-minute interval, the token’s value nosedived by an additional 94%.
Despite this catastrophic price action, the token has since shown signs of recovery, reaching a valuation just under $10.4 million.
Controversial Response from Base Leadership
Interestingly, despite the token’s disastrous market performance, Base has not removed its announcement tweet.
Instead, the platform appears to be attempting to reignite interest in the token’s launch, even in the face of widespread losses.
Jesse Pollak, the founder of Base, has refrained from issuing any apologies and has continued his scheduled podcast appearances.
Furthermore, he has retweeted victim-blaming commentary that frames the financial losses as a “valuable lesson” for cryptocurrency speculators.
Coinbase’s Disclaimer: “Not an Official Base Token”
Adding to the confusion, Coinbase has publicly stated that “Base did not launch a token.”
A Coinbase spokesperson clarified to Cointelegraph that the “BASEISFOREVERYONE” token is not an officially sanctioned Base cryptocurrency and that Coinbase was not involved in its sale.
The spokesperson explained that Base’s post on the Zora platform automatically converted the content into a tokenized asset.
Prior Commitments to a Token-Free Network
This recent development sharply contradicts Base’s repeated public declarations since its inception in 2023.
Leaders of the project have consistently asserted that there were no plans to introduce a token for the network.
Notably, on November 30, 2024, founder Jesse Pollak explicitly stated, “There are no plans for a Base network token.”
On April 9th of the current year, Pollak reaffirmed his lack of intention to launch a token.
Coinbase itself reinforced this commitment, stating, “Please note that we do not currently plan to issue a new network token.”
Coinbase CEO Brian Armstrong echoed this sentiment, confirming, “We’re not planning to make any token for Base.”
These assurances were seemingly overturned with yesterday’s unexpected token launch, triggering a wave of complaints from disillusioned users.
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