Coinbase Layer 2 blockchain, Base, recently found itself at the center of a whirlwind after an unofficial meme coin—minted automatically via the Zora protocol—triggered a rapid trading surge and subsequent crash. The episode highlights both the innovative potential and the risks of onchain content monetization, as well as the evolving role of meme coins within the crypto ecosystem.
How It Started: A Social Post Becomes a Tradable Token
The story began when Base’s official X (formerly Twitter) account posted “Base is for everyone,” which, thanks to Zora’s onchain social tools, was instantly minted as a tradable ERC-20 token. Although the Zora platform clearly labeled the token as unofficial and “not an investment,” traders quickly piled in, driving its market cap to $13 million within hours. The euphoria was short-lived: the token’s value plummeted by 92% to $1 million just three hours later, before partially recovering 1.
What Went Wrong: Concentration and Bots
Onchain analysis revealed that the top three wallets controlled nearly half the token’s supply, and trading bots contributed to the wild price swings. Around 2.500 holders—many likely new to Base—were left with significant losses. Despite the chaos, Base, as the post creator, received 1% of the token supply but publicly committed not to sell any of it 1.
Base and Zora Respond: Experimentation in Public
Base’s team responded by emphasizing their commitment to onchain experimentation, stating, “If we want the future to be onchain, we have to be willing to experiment in public. That’s what we’re doing.” Zora echoed this sentiment, encouraging users to “study Zora” and understand the mechanics behind these new forms of digital assets 1.
Content Coins vs. Meme Coins: A New Paradigm
Jesse Pollak, the creator of Base, clarified the distinction between “content coins” and traditional meme coins. Content coins represent a single piece of content with no expectations of future value, while meme coins aggregate community sentiment and often carry speculative hype. This new model, championed by Zora, aims to reward creators, distributors, and consumers by turning every piece of content into a tradable asset—potentially unlocking new business models for the open internet 1 2.
The Bigger Picture: Base’s Growing Meme Coin Ecosystem
The Base network has become a hotbed for meme coins, with tokens like $BRETT, $TYBG, and $MOCHI gaining traction. These coins, often inspired by internet culture and Coinbase’s own branding, have created a vibrant, if volatile, subculture within the Base ecosystem 3 4 5. Unlike meme coins on other blockchains, Base meme coins are closely tied to the network’s identity and community, offering both entertainment and speculative opportunities 3 4.
Key Takeaways for Crypto Enthusiasts
• Onchain content monetization is evolving rapidly, with protocols like Zora enabling instant tokenization of social posts.
• Meme coins on Base can experience extreme volatility, especially when supply is concentrated and bots are active.
• The distinction between content coins and meme coins is crucial for understanding the risks and potential of these new digital assets.
• Base’s approach reflects a broader trend in crypto: experimenting in public, learning from failures, and building new models for creator and community rewards.
