On-Chain Experiment Or Rug Pull? Base Faces Backlash After Unofficial Memecoin Crashes 90%
Coinbase’s Layer-2 network, Base, faced backlash after promoting an unofficial memecoin that plummeted over 90% shortly after launch. The memecoin's market cap initially surged to $17 million following a promotional post by Base, but collapsed when top holders sold 47% of the supply within an hour, netting profits of approximately $666,000. Critics labeled the incident a rug pull, urging Base to refrain from launching such tokens. Despite the controversy, Base clarified that it did not officially endorse the token and emphasized its commitment to on-chain content. Jesse Pollak, Base’s creator, differentiated between contentcoins and memecoins, advocating for the normalization of on-chain content. Skepticism remains among users regarding the value of such tokens and the implications of financializing content.
