Coinbase Denies Involvement in $15M Memecoin Crash Amid Base Token Controversy
Viral Token Post Sparks Investor Outrage, Raises Questions About Onchain Content Monetization
Crypto exchange Coinbase is under fire after a social media post linked to a rapidly collapsing memecoin sparked confusion and backlash — but the company insists it had no role in launching or endorsing the token.
On April 16, Base, Coinbase’s Ethereum Layer 2 blockchain, posted a promotional image to X (formerly Twitter) with the slogan “Base is for everyone.” The post included a link to Zora, a platform that turns posts into tradable tokens. That single post set off a whirlwind of speculation and a trading frenzy that led to a $15 million market crash in under 30 minutes.
From $17 Million to $1.9 Million: The Token That Tumbled
The token tied to the post, also called “Base is for everyone,” soared to a peak market cap of $17.1 million shortly after launch — only to plummet nearly 90% within 20 minutes to just $1.9 million, according to DEX Screener.
At the time of publication, the token had recovered slightly, trading around $7.7 million, but the damage to Base’s reputation was already done.
“Base did not launch a token,” a Coinbase spokeswoman told Cointelegraph, adding that the blockchain network was not involved in any sale and that Zora automatically tokenizes shared content.
A legal disclaimer on Zora’s token page emphasized that there are no profit expectations or promises of future development, and that the network received 10 million of the 1 billion tokens — pledged never to be sold. Proceeds from transaction fees, it said, would fund developer grants.
Zora Profits and Social Media Fallout
Zora’s own data shows that Base earned over $61,000 in fees from the token, which has now seen over $26 million in total trading volume.
But critics were not convinced.
“Any credibility this chain had is now gone,” one user wrote on X.
Pierre Rochard, former researcher at Riot Platforms, called the effort “terrible for the industry — very short-term, transactional extraction.”
Others targeted Base’s attempt to rebrand memecoins as “contentcoins.”
Abhishek Pawa, founder of AP Collective, argued that Base “utterly fumbled execution, optics, and trader expectations,” even if the underlying concept had merit.
Jesse Pollack: ‘Someone Has to Normalize Onchain Content’
Jesse Pollack, the creator of Base, came to its defense, emphasizing that creating tokens for internet content is a step toward a “new economy where creators earn from their creativity.”
“I’m not afraid for it to be us,” Pollack posted on X, calling the initiative a way to overhaul mental models and product experiences.
Despite his optimism, critics pointed to the way the token launch was exploited.
Bot Sniping and a Failed Second Attempt
According to Harrison Leggio, co-founder of crypto startup g8keep, two wallets quickly bought up 21% of the token’s supply for just 2 ETH (approx. $3,200) — flipping it for over $300,000 in profits. He called the incident “HORRIFICALLY sniped.”
Just over an hour after the failed token launch, Base posted again to Zora — this time to promote an event called “Base @ FarCon 2025.” A new token was minted and traded, but this one topped out at $987,570 before crashing 77% to around $230,000.
Looking Ahead: Innovation or Irresponsibility?
While the concept of onchain content monetization has undeniable potential, the backlash reveals how easily it can alienate early adopters when execution lacks clarity and control.
Coinbase and Base now find themselves at the center of a broader debate about how far blockchain innovation can go — and how much risk is too much for a mainstream audience.
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