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Base-Linked Token Faces Criticism as Three Wallets Cash Out Over $600K

In response to the community backlash, the platform claimed that the launch was experimental.

Avatar image of Faith Faith•April 17, 2025
money falling on a man

Base, the Layer-2 network backed by crypto exchange Coinbase, is facing widespread criticism from the crypto community for publicly endorsing a token that briefly lost most of its value shortly after launch. 

On Wednesday, Base made an X post with the caption “Base is for everyone.” A moment later, the Coinbase-affiliated layer 2 network noted it had “coined it” on Zora, sparking a market frenzy.

Following this post, the token quickly captured market interest pushing its market value first to $17 million. However, after reaching this peak, the token crashed by over 90% as traders began to take profit before recovering massively to hit $22.48 million. 

According to data from DEXScreener, the asset market cap sits at $11.8 million and a price of $0.01206 at the time of writing. The sudden price decline left investors who poured substantial funds into the token with devastating losses.

Allegations of Insider Trading 

Furthermore, the on-chain analytical platform Lookonchain detailed the activities of three wallets that made substantial returns on investments from the token. The disclosure fueled criticism surrounding the project, with many labeling them as inside traders. 

Wallet address “0xO992” purchased 256.39 million “Base is for everyone” tokens with 1.5 ETH ($2,370) before Base posted the token on X and sold it a few minutes later for 108 ETH ($170,400). Thus, this address made $168,000, an impressive 7,090% increase. 

The second address, “0x5D9D,” spent 1 ETH worth $1,577 to buy 82.86 million of the token before the announcement. He then sold it for 169.7 ETH ($267,600) when the price surged, netting $266,000. Similarly, the third wallet also turned $1,577 into $233,400, recording a 14,700% gain.

Base Responds to Criticism

Base has received widespread criticism over the token’s launch, with users claiming it rug-pulled investors. For instance, one crypto user said that the endorsement from Base, linked to publicly traded Coinbase, “significantly damaged” community trust. In response to the community backlash, the platform claimed that the launch was experimental. 

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

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Faith

Faith is a dedicated content writer who is focused on expanding her interest and knowledge about cryptocurrencies and blockchain technology. In her free time, she enjoys listening to music, reading, and traveling.