Base’s Unofficial Memecoin Crashes 90% Amid Rug Pull Allegations
Coinbase’s Layer-2 network, Base, faced backlash over allegations of a rug pull related to an unofficial memecoin that saw its value drop by over 90%. The incident raised concerns about the future of memecoins and on-chain content.
The Rise And Fall Of Base’s Unofficial Memecoin
- Base's official X account promoted the memecoin with a post stating “Base is for everyone,” leading to speculation among investors.
- The memecoin's market cap reached $17 million after being minted through the Zora social protocol.
- It collapsed by approximately 92% within an hour as top holders sold off 47% of the supply.
- Three wallets profited around $666K by purchasing large amounts before the official announcement.
- Community criticism accused Base of facilitating a rug pull and diluting their brand.
- Base earned about $81,000 from the memecoin, which peaked at $26 million before settling in the $9 million-$10 million range.
Base’s Public Experiment
- Base clarified it did not sell any tokens and distanced itself from being an official network token.
- The team emphasized the importance of bringing content on-chain and experimenting publicly.
- Jesse Pollak, Base’s creator, differentiated between contentcoins and memecoins, stating each has distinct values and expectations.
- Pollak advocated for normalizing on-chain content despite skepticism from some users regarding the financialization of digital assets.