Base's Meme Coin Promotion Leads to 99% Loss in 4 Hours

Coinbase’s Layer 2 network, Base, has come under intense scrutiny following an alleged pump and dump scheme that resulted in significant financial losses. The incident began when the official Twitter account of Base promoted a meme coin titled “Base is for everyone.” This endorsement triggered a speculative surge, driving the token’s market cap to an estimated $15 to $20 million within hours of its launch. However, the token quickly plummeted to near zero, leaving many investors with substantial losses.

The promotional tweet from Base, which included imagery and direct links to the meme coin on Zora, created a perception of legitimacy. Traders, drawn by the endorsement, rushed to invest, leading to an explosive rally in the token’s price. This was followed by an equally sharp collapse, confirming a classic pump and dump scenario. The token’s value fell by more than 99%, and trading volumes on Uniswap surged past $13 million during the brief window of activity.

Within a single 4-hour trading window, a green candle representing millions in inflow was immediately reversed by a red candle of equal size, marking a total loss of liquidity. This event has sparked massive outrage against both Coinbase and Base. Crypto influencers have criticized the incident as a failure of due diligence and communications strategy. Accusations of incompetence and poor risk oversight are spreading rapidly on social media, while memes mocking the network’s “Base is for everyone” slogan are ubiquitous.

Base has yet to provide an official response to the incident. The lack of communication has further fueled the public’s frustration and concern over the network’s reliability and security. The incident highlights the risks associated with investing in meme coins and the importance of thorough due diligence in the cryptocurrency market. It also underscores the need for clearer guidelines and regulations to prevent such schemes from occurring in the future.