Coinbase has been significantly impacted by fraudulent tokens. A recent investigation conducted by Solidus Labs has unveiled that during the timeframe spanning from mid-July to August 9, over 500 deceptive tokens emerged on the Base Layer-2 blockchain. These tokens encompassed names like BASEPEPE [BPEPE] and Baby Yoda [YODA].
Coinbase and the Buzz Factor
Solidus Labs’ report highlighted that approximately 300 tokens enabled their creators to generate an unlimited supply. Furthermore, an additional 60 tokens prevented buyers from reselling them on exchanges. The New York-based company, which specializes in monitoring suspicious cryptocurrency transactions, emphasized that “Scam token creators thrive on hype, commitments, and manipulation of price and trading volume.” In terms of figures, the report indicated that these deceptive tokens contributed to a trading volume of about $3.7 million on Base DEXes. As a result, scammers reaped profits of approximately $2 million.
Recent reports revealed that the introduction of Coinbase‘s Base platform for developers marked the initiation of the meme-coin era. These pump-and-dump digital assets experienced astonishing surges of up to 7,000,000%. Additionally, newly established large-scale wallets have been the driving force behind activity on Base. An example is the crypto known as BITCOIN (not to be confused with the original BTC), identified by the ticker HarryPotterObamaSonic10Inu, which has captured the attention of whale investors. This asset has exhibited a remarkable 182% increase in value in August, surpassing other meme coins like Dogecoin and Shiba Inu.
Chen Arad, Co-Founder of Solidus, emphasized the perpetual significance of “buzz,” noting that Base naturally garnered attention that unfortunately attracted scammers. The report underscored that the heightened excitement surrounding the Base network was no exception, indicating that a cautious approach was crucial when dealing with such tokens. A representative from Coinbase echoed similar sentiments, advising consumers to diligently research before engaging with any dApp, whether on Base or any other blockchain, much like they would on the broader internet.