Zora Token Surges 18.812% Amid Controversy and Insider Trading Allegations

Zora's latest price was $0.02277, up 18.812% in the last 24 hours. Zora, the native token of Base’s dedicated layer-2 NFT solution chain, has been the subject of significant attention and controversy. The token was promoted under the banner of “Coin Everything,” a narrative pushed by Base, the Ethereum L2 backed by Coinbase. However, the excitement surrounding Zora was quickly overshadowed by a series of troubling events and allegations of shady behavior.

Before Base officially tweeted about Zora, wallets had already begun buying the token. These wallets were likely connected to insiders or entities with advance notice, raising suspicions about insider trading. When the tweet was finally released, the price briefly pumped but then crashed immediately after launch, catching retail traders off guard. This was not just a typical pump-and-dump scheme; it was part of a larger, more calculated plan.

Shortly after the initial chaos, Zora officially announced its token launch, with Base heavily promoting it. However, Base never disclosed that they had invested in the project, leading to a lack of transparency that became a key point of contention. The community was left wondering if Base was hyping a token they were financially tied to without proper disclosure. This silence did not sit well with the community, and questions about the integrity of the promotion began to surface.

Despite the growing doubts, several prominent influencers continued to promote Zora, driving its narrative forward. This raised even more suspicions, especially when rumors surfaced that some influencers may have been paid by Zora to keep the hype alive. At this point, red flags were everywhere, and the community’s trust in the project began to erode.

The reveal of Zora’s tokenomics only added to the controversy. An alarming 65% of the total supply was allocated to the team and Coinbase Ventures, with minimal allocation to the community. This structure painted a clear picture: insiders held the power, and retail investors were merely exit liquidity. The tokenomics raised serious concerns about the fairness and sustainability of the project.

Blockchain sleuths soon uncovered that 1.8 billion tokens had already been sent to team-linked wallets a month before the token generation event (TGE). Some of these tokens were idle, while others were already on exchanges. Other wallets holding significant amounts of Zora tokens included addresses with over 100 million tokens each. This movement hinted at a premeditated dump strategy, leaving regular users holding the bag.

Adding to the confusion, users began receiving Zora airdrops without warning. Some had never used the platform directly, suggesting a mass blanket airdrop to inflate engagement numbers. However, with no official claim site, no announcement, and no communication, the airdrop only added to the chaos. Early holders saw their bags dumped on almost immediately by larger investors, and Zora began to bleed as the token price rapidly collapsed. Neither Base nor Zora made any official statements addressing the controversies, leaving the community with no support or clarity.

Zora was supposed to represent the next chapter in Base’s ambitious “Coin Everything” vision. Instead, it has become a case study in how not to launch a token. From early insider buys and silent paid promotions to team-heavy tokenomics, mysterious airdrops, and zero transparency, Zora has sparked a serious backlash. Retail investors are left asking if they just witnessed the fastest rug on Base and if there will be any accountability or just more silence.

Zora’s struggles to find investors have been evident. The initial excitement around Zora’s launch, fueled by its connection to Base’s NFT ecosystem, may be fading. The lack of sustained inflows indicates that traders may quickly sell their holdings once the speculative wave subsides.

Without a strong use case, it could be challenging for the token to maintain its value in the long run. The broader market for content coins built on Base remains promising, but the specific challenges faced by Zora highlight the need for greater transparency and community engagement in the cryptocurrency space. The community’s trust in the project has been severely damaged, and it remains to be seen whether Zora can recover from this controversy.