Coinbase has clarified that its blockchain network, Base, did not officially launch a token following significant backlash over a recently shared meme coin.
Coinbase has clarified that its blockchain network, Base, did not officially launch a token following significant backlash over a recently shared meme coin. The controversy erupted after Base promoted a token called "Base is for everyone" on X, which quickly surged to a market capitalization of $17.1 million before plummeting nearly 90% within 20 minutes.
The token was created on the social network Zora, which aims to allow users to tokenize social posts for speculation. Following its rapid rise and fall, the token stabilized at around $7.7 million.
A Coinbase spokeswoman emphasized that “Base did not launch a token,” noting that the posts on Zora were automatically tokenized and did not represent an official offering.
Amidst criticism, a legal disclaimer on the token's Zora page warned users not to expect profits or ongoing development related to the token. Base is set to receive 10 million tokens from a total supply of 1 billion, with revenues from transaction fees intended to support developer grants for the network.
Critics on X expressed their discontent, with one user stating that the incident eroded Base's credibility. Pierre Rochard, a former researcher at Riot Platforms, described the token as detrimental to the crypto industry, while Abhishek Pawa, founder of AP Collective, criticized Base for mishandling the execution of what he termed an innovative concept.
In response to the backlash, Base's creator, Jesse Pollack, defended the initiative, arguing that normalizing the tokenization of internet content is crucial for building a new economy for creators. He emphasized the need to overhaul existing mental models and product experiences to support this vision.
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