The layer 2 network network supported by Coinbase is under fire of the cryptographic community after promoting a so-called “content piece” which lost almost all its value after the launch.
The controversy began on April 16 when Base shared a token version of its article “Base is for everyone” on Zora, a decentralized content sharing platform, via its official X account.
This drew rapid and widespread attention to the token despite a Zora warning clearly indicating that the part was not linked to Coinbase or at the base and warned buyers not to expect yields.
Nevertheless, many cryptographic investors have interpreted promotion on X as an official approval.
For this reason, the market capitalization of the token quickly climbed to around $ 17 million. However, the excitement was short -lived because the value of the medal has dropped by around 95%, erasing more than $ 15 million from its market capitalization.
The blockchain analysis company, Lookonchain, reported suspicious negotiation behavior, revealing that three portfolios bought large amounts of token before the base announced and then sold a combined profit of around $ 666,000.
Adding to the controversy, Abhi, the founder of the cryptocurrency marketing company, noted that the three upper portfolios controlled 47% of the offer.
He added:
“(The) graphic clearly shows green candles of conventional pump and defrosting followed by an instant sale.”
Base defends the concept “Contentcoin”
After the counterou, Base tried to clarify his intentions while explaining that this decision was part of an experimental thrust to bring content to the head.
According to the company:
“To be clear, the base will never sell these tokens, and they are not official network tokens for the base, the coinbase or any other related product. The content that we share is creative, and we will continue to bring onchain culture.”
Jesse Pollak, the main developer of layer 2 Ethereum, said that the token had never been intended to operate as a same vehicle or typical investment.
Instead, the token was born on the idea of a “piece of content”, which was to tokensinate creative works.
According to him:
“(Content Coin) represents a single piece of content and it is created in a context where the wait is defined that the part is the content and that the content is the room – no less.”
He stressed that this model allows creators to monetize viral positions through negotiation and shared property costs, moving attention from speculation.
Pollak added:
“If you are trying to apply a model of money value of memes or traditional projects to content parts, you will be disappointed.”
Despite the explanation, criticism through cryptographic space are not convinced.
Alon, co-founder of Pump.fun, said that any influenced project should act responsible. He pointed out that protocols should avoid fixing unrealistic expectations, in particular involving tokens.
He said:
“I am a great defender of the vision of” Tout Tokensizing “, but you cannot change the current realities of the market – if you launch a room and you have a social influence, which is accompanied by responsibilities.”
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