Experimental ‘Base is for Everyone’ Token Crashes 95%
The ‘Base is for everyone’ token, an experiment launched on Zora by the Base team (Coinbase), crashed by 95% after an initial price surge and allegations of insider trading.
The Base team created the token as an experiment using an image with the phrase “Base is for everyone.” They state they are not responsible for users’ financial losses.
Pre-Launch Token Activity Sparks Scrutiny
Coinbase’s Base blockchain project released the ‘Base is for everyone’ token on April 16. Lookonchain analysts found that three wallets received tokens before the public announcement.
These wallets then sold their tokens after the price increased, gaining $666,000 in profits.
Zora Platform Used for Token Creation
Base issued ‘Base is for everyone’ on the Zora platform, a content tokenization service.
Base published a post with the phrase “Base is for everyone” on an image.
Zora then automatically generated the tokens from this post.
Background on Base Blockchain
Base is a layer-2 blockchain on Ethereum, launched by Coinbase in August 2023.
Coinbase, a publicly traded company, designed Base to support financial and trading applications, decentralized exchanges (DEX), lending services, and token creation, including NFTs.
Market Cap Volatility and Insider Trading Claims
Following announcements on X, ‘Base is for everyone’ saw its market capitalization jump to $17 million.
It quickly declined to about $1 million. Analysis indicated at least three addresses bought tokens before the public announcement and profited before the market crash.
Lookonchain reported, “Three wallets purchased large quantities of Base is for everyone before Base’s post was published and then sold them, earning about 666,000 dollars.”
Token Price Recovers Partially After Crash
After the nearly 95% drop, the price of ‘Base is for everyone’ has partially recovered.
Dex Screener data as of 11:00 a.m. shows the token’s capitalization at approximately $14 million.
Community Criticizes Base; Project Clarifies Stance
The community criticized the Base project after the token’s sharp decline. Base responded, clarifying that ‘Base is for everyone’ on Zora is not an official cryptocurrency.
They stated it is not traded on the Base network or Coinbase and serves only experimental purposes.
Base declared, “These are not official tokens from the Base network, Coinbase, or any other related products.”
Token Details and Risk Disclaimer
Base explained that they did not directly issue the token. Zora’s platform automatically created it when Base published the post.
The token description on Zora states it has no affiliation with Base or Coinbase.
It warns buyers against expecting profits, stating, “There is a significant risk of losing all invested funds. Purchase for creative and entertainment purposes only.”
Also Read: Base Token Price Falls After Release Coinbase Disclaims Endorsement
