By Key Points
- Coinbase Memecoin Controversy Sparks $15M Loss and Outrage
- Base-linked memecoin crashed 90% in 20 minutes
- Coinbase says it didn’t launch or sell the token
- Zora post tokenized automatically, claims Coinbase
- Criticism grows as trading volume tops $26M
Coinbase is once again in the crypto spotlight—this time for distancing itself from a fast-crashing memecoin that was linked to its Layer-2 network, Base. On April 16, a post shared by Base’s official X account inadvertently triggered the creation of a speculative token titled “Base is for everyone,” which skyrocketed to a $17.1 million market cap before crashing nearly 90% in 20 minutes.
The Base is for everyone token’s market cap saw a slight recovery after a rapid, nearly 90% fall in value soon after its launch. Source: DEX Screener – Techtoken
That massive drop cost traders roughly $15 million, prompting a flood of backlash. But Coinbase says it had nothing to do with it.
A Coinbase spokesperson told Cointelegraph,
“Base did not launch a token.”
According to the spokesperson, Base had merely posted content to Zora, a social media platform that automatically tokenizes content. That content became tradable without Coinbase initiating or profiting from its launch. Despite that, Base’s X post linked directly to the token, drawing harsh criticism.
This comes just months after Coinbase reported its worst quarter since the FTX collapse, further fueling concerns over its market strategy and public perception.
Coined it: https://t.co/iXmYbZ45xN
— Base (@base) April 16, 2025
Zora Token Trigger Sparks Confusion and Losses
The token, created by Zora’s automated system, briefly surged but was quickly “horrifically sniped”, according to Harrison Leggio, co-founder of crypto startup g8keep. Two wallets reportedly bought 21% of the total supply for just 2 ETH (~$3,200) and flipped it for $300,000 profit, further inflaming tensions within the crypto community.
At the time of reporting, the token’s market cap has recovered slightly to $7.7 million, with over $26 million in total trading volume.
While Coinbase claims it received 10 million tokens—1% of the 1 billion total supply—it insists they won’t be sold. Instead, any revenue will support development grants on the Base network.
The token’s Zora page features a legal disclaimer:
“Do not expect profits or returns… no ongoing development or efforts will be made to increase their value.”
Base = Coinbase = Crypto = Blockchain = Scam (that’s what normies will see)
Stop this shit. Always one step forwards then five steps back in web3 with this type of shit.
And we definitely don’t need that fucking memecoin launchpad from Raydium. pic.twitter.com/Z6WWVTAEi5
— cryptotaku.ip 🏝️ (@crypt0taku) April 16, 2025
That hasn’t stopped the criticism. Former Riot Platforms researcher Pierre Rochard called the token “terrible for the industry,” while AP Collective founder Abhishek Pawa slammed it as a “botched attempt to redefine memecoins.”
Still, Jesse Pollack—Base’s creator—defended the concept:
“Someone has to normalize putting all of our content onchain… This is the end game for how we build a new economy where creators earn from their creativity.”
With all due respect @brian_armstrong , this is terrible for the industry, very short-term transactional extraction.
Please, focus on issuing $COIN stocks and bonds to aggressively accumulate BTC in your company treasury. Long term value creation. @coinbase shareholders and… https://t.co/e3Bh9cbR5s
— Pierre Rochard (@BitcoinPierre) April 16, 2025
But timing and optics clearly didn’t work in Base’s favor. Just over an hour after the first memecoin imploded, Base tried again—posting a new token, “Base @ FarCon 2025.” It peaked at $987,570 in value, only to crash by 77% almost instantly.
base tried redefining memecoins as “contentcoins” and completely botched the execution
here’s exactly what went down, why it matters, and what’s next ⏬
the setup
→ base officially launches tokens via zora, calling them “contentcoins”
→ tokens immediately pump to $15-20m… https://t.co/eb7wgej7ty pic.twitter.com/BofuJAFygw— Abhi (@0xAbhiP) April 17, 2025
Token Hype vs. Trust in the Web3 Era
This controversy underlines a bigger problem in Web3: the tension between innovation and trust. As platforms like Zora experiment with content tokenization, the line between creative expression and speculative finance continues to blur. The result? Confused users, angry traders, and reputational risk for major players like Coinbase.
this: @base edition
someone has to normalize putting all of our content onchain. and i’m not afraid for it to be us.
why? because in the wake of the chaos, we’ll normalize the behavior and create a better future for creators.
come join us — just coin it. https://t.co/Gt3EmRkVPU
— jesse.base.eth (@jessepollak) April 16, 2025
Memecoins, while part of crypto culture, have long raised concerns around volatility and rug pulls. As shown by the Bybit PAWS airdrop and the recent OM token burn, community sentiment around token events can swing wildly depending on perceived fairness and execution.
Even major launches like BNB perpetual futures on Coinbase are being closely scrutinized by traders, especially in a market where volumes are drying up and Bitcoin ETFs are slowly flattening volatility.
Base token on Zora was HORRIFICALLY sniped.
From a quick look, here’s 2 wallets that purchased 21% of the supply for 2 ETH.
They then transferred to other wallets and sold for $300k profit.
This is what can happen if you don’t have snipe protection… pic.twitter.com/FT4kNWPtoQ
— Pop Punk (@PopPunkOnChain) April 16, 2025
This Base incident is a strong reminder: Transparency and clear communication matter, especially when every tweet can trigger millions in market activity.
As memecoins continue to trend, crypto platforms face mounting pressure to distinguish between marketing stunts, genuine innovation, and risky speculation. Whether or not Coinbase had direct involvement, the public reaction signals that trust in token-driven engagement is wearing thin.
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