Coinbase’s Base Network | $16 Million Pump and Dump Controversy
A growing storm is brewing around Coinbase's Base network after a meme coin it promoted skyrocketed to a market cap of $15-$20 million, only to crash over 99% shortly thereafter. This debacle is raising serious doubts about the platform's oversight and responsibility in token promotions.
The Incident
The meme coin, initially backed by the official Twitter account of Base, saw a rapid ascent in value before plummeting almost instantly. Critics are questioning whether Coinbase conducted adequate due diligence. As a result, liquidity dried up, leaving many investors in disbelief.
"The scam that never stops," one person commented, expressing palpable frustration.
New Insights from the Community
Comments from various forums reveal several recurring themes and critical perspectives:
Meme Coin Functionality: Some people pointed out that meme coins often lack intrinsic value. One remarked, "Who would have thought a meme coin might not have any functional value other than to pump and dump?"
Clarification of Coin Nature: It has been highlighted that the meme coin was described merely as a collectible, with transparency about its non-investment nature. A user noted, "This and future coins on Zora are not an official network or protocol token for BaseThey are created solely for artistic and cultural purposes." Despite this clarification, the coin attracted hype and led to a market surge.
Ongoing Speculation: Interestingly, amid the backlash, the coin's market reached an all-time high again, prompting one user to observe how complaints from those who lost money have subsided.
Additional Sentiment and Reactions
The community has been split in its opinions:
Some continue to voice their dissatisfaction with Base's risk management: "Critics accuse Base of poor due diligence and risk oversight."
Others note a pattern within the broader crypto landscape: "Doesn’t this happen on a daily basis on Solana?"
Key Takeaways
❗️ The meme coin peaked at a market cap of around $20 million before its drastic fall.
📉 Over 99% of the coin's value was wiped out almost within minutes of its launch.
💬 “People should file a class action lawsuit against all of the coins that got sniped or rugged,” urged a commenter, showing the increasing calls for accountability.
As Coinbase's Base grapples with the fallout, investors are left reflecting on their experiences and the platform's ability to protect their interests in an increasingly volatile crypto environment.