Coinbase support base is launched in the ‘Pump and Dump’ style, turning off the fire for the role
Coinbase-Backed layer-2 Network Base caused a fire in the encryption community after promoting the so-called “content coin” that lost almost all value immediately after its launch.
The controversy began on April 16 when I shared a tokenized version of ZORA’s token version of the “Base is everyone” post on April 16.
Despite the indemnity of Zora, the coin stated that it was not connected to the coinbase or base and warned the buyer not to expect a profit.
Nevertheless, many encryption investors have interpreted X’s promotions as official approval.
As a result, the market cap of tokens has soared to about $ 17 million. However, the excitement was short because the value of the coin plunged by about 95%, and the market cap of more than $ 15 million.
Blockchain Analytics Firm Lockonchain reported that three wallets bought a large amount of tokens before the announcement of the base and later sold for about $ 666,000.
ABHI, the founder of Crypto marketing company APCOLLECTIVE, said in addition to the debate that the top three wallets controlled 47%of the supply.
He added:
“The chart clearly shows the classic pump and dump, a huge green candle and instant selling.”
The default defends the concept of “contentcoin”
After the back rash, the base attempted to clarify its intentions and explained that movements were part of the experimental promotion of bringing the chain.
According to the company:
“To be clear, the basics will never sell these tokens, and these are not official network tokens for basic, coinbase or other related products. The content we share will be creative and will continue to bring about culture.”
Jesse Pollak, an Ethereum layer-2 Lead Developer, said that this token did not function as a typical note shape or investment vehicle.
Instead, tokens were born with the idea of “content coin” for tokenization of creative works.
According to him:
“(Content Coin) shows a single content, coin is the content and the content is expected to be a coin.”
He emphasized that this model can share the transaction fee and ownership to generate profits from viral sex posts to change the focus on speculation.
POLLAK added:
“I will be disappointed if I try to apply a traditional meme or project coin evaluation model to the content coin.”
Despite the explanation, critics in the encryption space are still unclear.
Alon, co -founder of Pump.fun, said that an influential project should act responsibly. He stressed that protocols should avoid unrealistic expectations, especially unrealistic expectations related to tokens.
He said.
“I am advocating the vision of” tokenization “, but I can’t change the reality of the current market.
