Coinbase Distances Itself from Memecoin Fiasco After $15M Dump

Coinbase Distances Base from Controversial Memecoin After $15M Flash Dump

Crypto exchange Coinbase is under scrutiny after its Layer-2 blockchain Base was linked to a viral memecoin that experienced a wild pump-and-dump cycle — skyrocketing to a $17.1 million market cap before crashing nearly 90% in under 20 minutes.

On April 16, Base’s official X (formerly Twitter) account shared a post with the network’s tagline, “Base is for everyone,” linking to a token of the same name on Zora — a decentralized platform where content is automatically tokenized and made tradable.

While the post was intended to promote the Base network, the token quickly became the center of controversy. It soared to a peak market cap of $17.1 million within an hour, then plummeted to $1.9 million in just 20 minutes, according to DEX Screener data. Although it later recovered slightly to around $7.7 million, the damage to Base’s public image had been done.

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

A Coinbase spokesperson swiftly distanced the company from the token, clarifying:

“Base did not launch a token. This is not an official Base token, and Base did not sell this token.”

The spokesperson explained that Zora’s system automatically tokenizes content posted on the platform, and included a legal disclaimer stating users should not expect returns or ongoing development related to the tokens. The disclaimer also noted that Base received 10 million of the total 1 billion token supply — with a pledge never to sell them — and that any earnings from trading fees would be used to support grants for Base developers.

Despite the hands-off approach, Base reportedly earned over $61,000 from the token’s activity, with trading volume exceeding $26 million.

Base’s X post linking to the post on Zora. Source: Base

Community backlash was swift and intense. One X user wrote, “Any credibility this chain had is now gone.” Former Riot Platforms researcher Pierre Rochard labeled the launch “terrible for the industry,” while AP Collective founder Abhishek Pawa called it a fumbled attempt to rebrand memecoins as “contentcoins.”

Even though many criticized the execution, Pawa acknowledged the concept had potential:

“Base tried redefining memecoins as ‘contentcoins’ and completely botched the execution… The core innovation actually has potential.”

In defense, Jesse Pollak — the creator of Base — argued that bringing content onchain is the future:

“Someone has to normalize putting all of our content onchain. I'm not afraid for it to be us.”

Pollak described tokenizing internet content as a path toward building a creator-driven economy, although he admitted it would require a shift in “mental models and product experiences.”

Source: Harrison Leggio

Front-Running and a Failed Follow-Up

Adding fuel to the fire, the token was reportedly “horrifically sniped,” according to Harrison Leggio, co-founder of crypto startup g8keep. Two wallets allegedly bought 21% of the total supply for just 2 ETH (~$3,200) and quickly offloaded the tokens, raking in an estimated $300,000 profit.

Just over an hour after the initial launch, Base posted again on Zora to promote an upcoming event in New York — which also created another token, “Base @ FarCon 2025.” That token briefly hit a $987,570 market cap before crashing by 77% to around $230,000.

Despite the public backlash and criticism, Coinbase and Base remain committed to experimenting with onchain content. But for many in the crypto community, the incident serves as a cautionary tale of how easily tokenization efforts — even unintentional ones — can spiral out of control.