Experimental Token On Base Crashes By 95%

The project team explained that it tokenized an image with the inscription Base is for everyone as an experiment, declaring itself not responsible for users' losses.

The Base blockchain project, launched by the largest US crypto exchange Coinbase, issued the Base is for everyone token on the evening of 16 April. According to analysts at Lookonchain, three wallets received the tokens prior to the announcement, and after the price rise, they sold them for a profit of $666,000.

Base is for everyone was issued on the Zora platform, which tokenizes content - the Base project published a post with this inscription on an image, and Zora subsequently generated the tokens.

Base is a second-level (L2) blockchain on Ethereum, launched in August 2023 by Coinbase, a NASDAQ-listed exchange. The Base network can be used to develop financial and trading applications, trade on decentralised exchanges (DEX), offer credit services, or issue tokens (including NFTs).

After the news of the token on X was published, the market capitalisation of Base is for everyone skyrocketed to $17 million, only to quickly collapse to around $1 million. As analysts discovered, at least three addresses that had purchased the token before the announcement made thousands of dollars before the collapse.

"Three wallets purchased large quantities of Base is for everyone before Base's post was published and then sold them, earning about $666.000 dollars," noted analysts at Lookonchain.

After surging and plummeting nearly 95 per cent, the price of the Base is for everyone token has recovered somewhat. As of 11:00 a.m., the token's capitalisation is around $14 million, according to Dexscreener.

Criticism from the community after the crash but Base clarifies its position

The Base project was criticised by the community after the token's collapse. However, the team has clarified that the Base is for everyone token issued on Zora is not an official cryptocurrency, is not traded on the Base network or Coinbase, and was created solely for experimental purposes.

"These are not official tokens from the Base network, Coinbase or any other related products. The content we share is creative and we will continue to develop the culture on the blockchain," said Base.

Base also specified that it did not issue the token directly; it was created automatically by the Zora platform, on which Base simply published the post. The description of the token on Zora also emphasises that it is not affiliated with Base or Coinbase and that those who purchase it should not expect any profit or return.

"There is a significant risk of losing all invested funds. Purchase for creative and entertainment purposes only," reads the token description Base is for everyone.

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