- Coinbase’s Layer 2 network, Base, sparked a trading frenzy after publishing a post on Zora, leading to the minting of a tradable ERC-20 token.
- The token quickly surged to $13 million in value before crashing 92%, with concerns about potential manipulation and distribution risks.
- Base clarified its experiment with Zora, emphasizing the importance of public experimentation in shaping the future of onchain content.
Coinbase’s Layer 2 network, Base, sparked a high-octane trading frenzy this week after publishing a post on Zora, a decentralized on-chain media protocol. The post, titled “Base is for everyone,” was instantly minted into a tradable ERC-20 token through Zora’s content-to-coin infrastructure, quickly gaining viral traction across crypto Twitter.
Base’s official X (formerly Twitter) account shared the post, which triggered an automatic token mint on Zora. Despite the Zora page prominently displaying a disclaimer that the asset was not an official Base token, that didn’t stop traders from piling in.
Within hours, the token’s valuation exploded to $13 million, fueled by speculation and a fear of missing out. But just as quickly as it rose, the token crashed, losing 92% of its value and dropping to a market cap of $1 million within three hours. The frenzy highlighted just how powerful Coinbase’s broader ecosystem influence can be even without direct involvement.
As of the latest data from DEXScreener, the token has rebounded slightly, gaining 20% in the last hour to trade around $0.007. The wild swings have drawn both criticism and intrigue, with many in the crypto community debating whether this was a case of irresponsible hype or a bold experiment in onchain content creation.
Coinbase Explains Onchain Experiment with Zora
Later in the evening, Base responded publicly, clarifying its intentions behind using Zora and emphasizing the value of experimenting in public.
“Base is posting on Zora because we believe everyone should bring their content onchain, and use the tools that make it possible,” the account posted on X. “If we want the future to be onchain, we have to be willing to experiment in public. That’s what we’re doing.”
Zora echoed the sentiment with a cryptic message: “study Zora.” The protocol retweeted pseudonymous user Larp von Trier, who summed up the situation with sharp sarcasm:
“Solana Manlets had no idea about how Zora works and got rekt.”
Not everyone was amused. Hantao Yuan, co-founder of the quest-to-earn platform Moku, raised red flags over the token’s distribution. According to Yuan, the top three wallets held a combined 47% of the supply, with one wallet alone controlling 25.6%. He also alleged that automated trading bots were manipulating the token chart and suggested that up to 2,500 wallets, potentially new users on the Base network, were rugged in the process.
Base automatically received 10 million tokens, equivalent to 1% of the total supply, simply for being the post creator via Zora’s protocol. However, a Base spokesperson confirmed to Decrypt that none of these tokens were sold and reiterated that the asset was never an official Base project. The webpage disclaimer was cited as evidence.
Despite the chaos, the token has generated over $28 million in trading volume and more than $60,000 in creator earnings for Base, which is backed by Coinbase, showcasing the economic potential of onchain content, if not without risk.
Coinbase Explains Content Coins vs Meme Coins
As confusion reigned, Base founder Jesse Pollak stepped in to offer context, positioning the event as part of a larger shift in internet monetization. In a post on X, Pollak drew a distinction between “content coins” and meme coins.
“Content coins represent a single piece of content, with singular value and no expectations,” Pollak wrote. “Meme coins, by contrast, are collections of content that carry high expectations.”
Pollak encouraged followers to read an essay by Jacob Horne, co-founder of Zora, that articulates the philosophical foundation of content coins. In the piece, Horne argues that the internet is trapped between free access to information and the need to compensate creators. Crypto, he suggests, offers a solution: open, tokenized markets where content remains accessible, yet value flows back to those who help create and distribute it.
“Coins unlock a free and valuable internet,” Horne writes. “One where information can be freely accessed and shared while the value of that information finds its way into all of the hands that help create, distribute, and consume it.”
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