1 day ago
Coinbase-backed Layer-2 web Base is nether occurrence from the crypto assemblage aft promoting a alleged “Content Coin” that mislaid astir each its worth soon aft launch.
The contention began connected April 16 erstwhile Base shared a tokenized mentation of its “Base is for Everyone” station connected Zora, a decentralized content-sharing platform, done its authoritative X account.
This attracted swift and wide attraction to the token contempt a disclaimer connected Zora intelligibly stating the coin wasn’t linked to Coinbase oregon Base and warned buyers not to expect returns.
Nevertheless, galore crypto investors interpreted the promotion connected X arsenic an authoritative endorsement.
Due to this, the token’s marketplace headdress rapidly soared to astir $17 million. However, the excitement was short-lived due to the fact that the coin’s worth plummeted astir 95%, erasing much than $15 cardinal of its marketplace cap.
Blockchain analytics steadfast Lookonchain flagged suspicious trading behavior, revealing that 3 wallets bought ample amounts of the token earlier Base’s announcement and aboriginal sold for a combined nett of astir $666,000.
Adding to the controversy, Abhi, the laminitis of crypto selling steadfast Apcollective, noted that the apical 3 wallets controlled 47% of the supply.
He added:
“[The] illustration intelligibly shows classical pump-and-dump, monolithic greenish candles followed by instant sell-off.”
Base defends “Contentcoin” concept
Following the backlash, Base attempted to clarify its intentions portion explaining that the determination was portion of an experimental propulsion to bring contented on-chain.
According to the firm:
“To beryllium clear, Base volition ne'er merchantability these tokens, and these are not authoritative web tokens for Base, Coinbase, oregon immoderate different related product. The contented we stock is creative, and we’re going to support bringing civilization onchain.”
Jesse Pollak, the Ethereum layer-2 pb developer, stated that the token was ne'er intended to relation arsenic a emblematic memecoin oregon concern vehicle.
Instead, the token was calved connected the thought of a “Content Coin,” which was to tokenize originative works.
According to him:
“[Content Coin] represents a azygous portion of contented and it’s created successful a discourse wherever the anticipation is acceptable that the coin is the contented and the contented is the coin — nary more, nary less.”
He emphasized that this exemplary allows creators to monetize viral posts done trading fees and shared ownership, shifting the absorption distant from speculation.
Pollak added:
“If you effort and use a accepted meme oregon task coin valuation exemplary to contented coins, you’re going to beryllium disappointed.”
Despite the explanation, critics crossed the crypto abstraction stay unconvinced.
Alon, co-founder of Pump.fun, said that immoderate task with power should enactment responsibly. He emphasized that protocols indispensable debar mounting unrealistic expectations, particularly involving tokens.
He stated:
“I’m a immense advocator for the imaginativeness of “tokenizing everything” but you can’t alteration existent marketplace realities – if you motorboat a coin AND person societal influence, that comes with responsibility.”
The station Coinbase-backed Base draws occurrence for relation successful ‘pump-and-dump’ benignant ‘Content Coin’ token launch appeared archetypal connected CryptoSlate.
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