The Base network, built on the Ethereum blockchain and associated with the cryptocurrency exchange Coinbase, has officially introduced its new meme coin called Base is for Everyone. At launch, it is positioned as a “public experiment” aimed at exploring culture and content on-chain.
This is reported by Бізнес • Медіа
Market Reaction and Insider Trading Suspicions
Initially, the token’s market capitalization quickly surged to over $21 million, but shortly thereafter, it plummeted by more than half to approximately $9 million, according to CoinMarketCap data.
“Base will never sell these tokens. They are not official tokens for Base, Coinbase, or any related products. We are simply experimenting with on-chain culture and content,” the Base team stated.
The team explained that publishing on the Zora platform supports the creation and dissemination of content, including memes, moments, and cultural phenomena. Representatives noted: “If we want the future to be on-chain, we need to be ready for public experiments. That’s exactly what we are doing.”
Grounds for Suspicions of Insider Trading
Following the launch of the meme coin, suspicions arose within the crypto community regarding potential insider trading. According to the analytical platform Lookonchain, three wallets purchased a significant amount of tokens before the official announcement and then sold them for substantial profits, earning approximately $666,000.
- One wallet bought 256.39 million tokens for 1.5 ETH (approximately $2,370) and sold them for 108 ETH (over $170,000), making a profit of about $168,000.
- The second spent 1 ETH (approximately $1,577) on 82.86 million tokens and sold them for 169.7 ETH (over $267,000), resulting in a profit of $266,000.
- The third wallet spent 1 ETH on 131.92 million tokens and sold 109.92 million for 148 ETH (around $233,000), earning over $231,000 in profit.
Additionally, the three largest wallets control 47% of all tokens, raising concerns about potential centralization and market manipulation. While the Base team assured that the tokens have no functional significance for the network, the crypto trading community is actively discussing the transparency and ethics of such an experiment.
“Working with large wallets and asset concentration creates risks of centralization and potential market manipulation,” noted an analyst.
It is worth mentioning that in July 2024, the Engage Raise studio utilized the Base blockchain to launch the Support Crypto platform aimed at raising crypto donations for American politicians.