The 'Base is for everyone' token faced a sharp decline in value after its launch, leading to criticism of Base and Coinbase.
Token's Decline and Recovery
The 'Base is for everyone' token, supported by the Layer-2 network Base from Coinbase, dropped by 95% in value after its launch, losing over $15 million. However, at the time of publication, the token nearly completely regained its value, reaching a market capitalization of around $17.4 million.
Base's Explanation
A Base representative stated in an interview that 'Base did not launch a token, this is not an official Base token, and Base did not sell this token.' They also pointed out that legal disclaimers warn against profit expectations from the token. The token was automatically minted by the Zora platform.
Community Reaction
Following the token's decline, crypto community members expressed dissatisfaction, with some labeling it a standard 'pump-and-dump' scheme. The founder of the Web3 advisory firm AP Collective stated that the crash was initiated by large token holders and noted that the endorsement from Base undermined community trust.
The situation with the 'Base is for everyone' token highlights the risks associated with speculative assets in the crypto market and the influence a company may have on community trust.
