Coinbase’s Layer 2 Network Base Launches Token, Sparks Market Frenzy
Coinbase's Layer 2 network, Base, initiated an experimental token launch following the tweet "Base is for everyone." This led to significant market activity surrounding a newly created ERC-20 token titled “Base is for everyone.”
Key Events
- The token reached a peak market cap of $17 million, dropped by 94%, then rebounded to over $23 million within 12 hours.
- Current market cap stands at approximately $14 million with trading volume exceeding $33 million.
Profits and Controversies
- A wallet (0x0992) bought 256 million tokens for 1.5 ETH (~$2,370) and sold them for 108 ETH (~$170,400), yielding a profit of $168,000.
- Three wallets collectively profited around $666,000 from early purchases.
- Accusations of insider trading arose as some wallets controlled a significant portion of the token supply.
- Critics labeled the token launch as reckless, highlighting that three wallets owned nearly 47% of the total supply.
Response from Base
Despite backlash, Base maintained its stance on the initiative. Jesse Pollak emphasized the importance of tokenizing content as a new marketing frontier, asserting they aim to normalize on-chain content. Base claims it will not sell the 10 million tokens received as the original content creator.