Base, Coinbase’s Layer 2 Network, Sparks High-Octane Trading Frenzy

Base, Coinbase's Layer 2 network, sparked a high-octane trading frenzy this week after publishing a post on Zora, a decentralized on-chain media protocol.

Coinbase’s Layer 2 network, Base, is cooking up a high-octane trading frenzy this week with a post on Zora, a decentralized on-chain media protocol. The post, titled “Base is for everyone,” was instantly minted into a tradable ERC-20 token through Zora’s content-to-coin infrastructure, quickly gaining viral traction across crypto Twitter.

Base is for everyone. pic.twitter.com/gq3lLLuXO1

Base’s official X (formerly Twitter) account shared the post, which triggered an automatic token mint on Zora. Despite the Zora page prominently displaying a disclaimer that the asset was not an official Base token, that didn’t stop traders from piling in.

Within hours, the token’s valuation exploded to $13 million, fueled by speculation and a fear of missing out. But just as quickly as it rose, the token crashed, losing 92% of its value and dropping to a market cap of $1 million within three hours. The frenzy highlighted just how powerful Coinbase’s broader ecosystem influence can be even without direct involvement.

As of the latest data from DEXScreener, the token has rebounded slightly, gaining 20% in the last hour to trade around $0.007. The wild swings have drawn both criticism and intrigue, with many in the crypto community debating whether this was a case of irresponsible hype or a bold experiment in onchain content creation.

Coinbase Explains Onchain Experiment with Zora

Later in the evening, Base responded publicly, clarifying its intentions behind using Zora and emphasizing the value of experimenting in public.

“Base is posting on Zora because we believe everyone should bring their content onchain, and use the tools that make it possible,” the account posted on X. “If we want the future to be onchain, we have to be willing to experiment in public. That’s what we’re doing.”

Base is posting on Zora because we believe everyone should bring their content onchain, and use the tools that make it possible.Memes. Moments. Culture.If we want the future to be onchain, we have to be willing to experiment in public. That’s what we’re doing. To be clear,…

Zora itself replied with a cryptic message: “study Zora.” The protocol also retweeted pseudonymous user Larp von Trier, who summed up the situation with sharp sarcasm:

Solana Manlets had no idea about how Zora works and got rekt.

Not everyone was amused. Hantao Yuan, co-founder of the quest-to-earn platform Moku, raised red flags over the token’s distribution. According to Yuan, the top three wallets had a combined 47% of the supply, with one wallet alone controlling 25.6%. He also alleged that automated trading bots were manipulating the token chart and suggested that up to 2,500 wallets, potentially new users on the Base network, were rugged in the process.

Let me get this straight> base tweets a token on their main account> Top 3 holders had 47% of the supply (sold a lot)> Jesse defends it> Posts 2 more tokens> "This is culture"> Rugs 2500 holders (potentially new base network users)

Base automatically received 10 million tokens, equal to 1% of the total supply, for being the post creator via Zora’s protocol. However, a Base spokesperson confirmed to Decrypt that none of these tokens were sold and maintained that the asset was never an official Base project. The webpage disclaimer was cited as evidence.

Despite the chaos, the token has generated over $28 million in trading volume and more than $60,000 in creator earnings for Base, which is backed by Coinbase, showcasing the economic potential of onchain content, if not without risk.

Coinbase Explains Content Coins vs Meme Coins

As confusion reigned, Base founder Jesse Pollak stepped in to offer context, positioning the event as part of a larger shift in internet monetization. In a post on X, Pollak drew a distinction between “content coins” and meme coins.

my quick takes – caveated with the reality that all my thinking on this is evolving + maturing in real time.—What makes a content coin a content coin? if it represents a single piece of content and it's created in a context where the expectation is set that the coin is the…

“Content coins represent a single piece of content, with singular value and no expectations,” Pollak wrote. “Meme coins, by contrast, are collections of content that carry high expectations.”

Pollak encouraged followers to read an essay by Jacob Horne, co-founder of Zora, that articulates the philosophical foundation of content coins. In the piece, Horne argues that the internet is trapped between free access to information and the need to compensate creators. Crypto,