Coinbase-backed Layer-2 network Base is under fire from the crypto community after promoting a so-called “Content Coin” that lost nearly all its value shortly after launch.
The controversy began on April 16 when Base shared a tokenized version of its “Base is for Everyone” post on Zora, a decentralized content-sharing platform, through its official X account.
This attracted swift and widespread attention to the token despite a disclaimer on Zora clearly stating the coin wasn’t linked to Coinbase or Base and warned buyers not to expect returns.
Nevertheless, many crypto investors interpreted the promotion on X as an official endorsement.
Due to this, the token’s market cap quickly soared to around $17 million. However, the excitement was short-lived because the coin’s value plummeted roughly 95%, erasing more than $15 million of its market cap.
Blockchain analytics firm Lookonchain flagged suspicious trading behavior, revealing that three wallets bought large amounts of the token before Base’s announcement and later sold for a combined profit of around $666,000.
Adding to the controversy, Abhi, the founder of crypto marketing firm Apcollective, noted that the top three wallets controlled 47% of the supply.
He added:
“[The] chart clearly shows classic pump-and-dump, massive green candles followed by instant sell-off.”
Base defends “Contentcoin” concept
Following the backlash, Base attempted to clarify its intentions while explaining that the move was part of an experimental push to bring content on-chain.
According to the firm:
“To be clear, Base will never sell these tokens, and these are not official network tokens for Base, Coinbase, or any other related product. The content we share is creative, and we’re going to keep bringing culture onchain.”
Jesse Pollak, the Ethereum layer-2 lead developer, stated that the token was never intended to function as a typical memecoin or investment vehicle.
Instead, the token was born on the idea of a “Content Coin,” which was to tokenize creative works.
According to him:
“[Content Coin] represents a single piece of content and it’s created in a context where the expectation is set that the coin is the content and the content is the coin — no more, no less.”
He emphasized that this model allows creators to monetize viral posts through trading fees and shared ownership, shifting the focus away from speculation.
Pollak added:
“If you try and apply a traditional meme or project coin valuation model to content coins, you’re going to be disappointed.”
Despite the explanation, critics across the crypto space remain unconvinced.
Alon, co-founder of Pump.fun, said that any project with influence should act responsibly. He emphasized that protocols must avoid setting unrealistic expectations, especially involving tokens.
He stated:
“I’m a huge advocate for the vision of “tokenizing everything” but you can’t change current market realities – if you launch a coin AND have social influence, that comes with responsibility.”
