Coinbase's Layer 2 network, Base, recently promoted a token through Zora, an on-chain protocol, leading to a trading frenzy that saw its value skyrocket to $13 million before plummeting by 92% to $1 million in just three hours. The unofficial token was created as a digital collectible and was not considered an official Base token. After the sharp decline, it partially recovered to $0.007. Some prominent figures in the crypto community criticized the incident, noting that a small number of holders controlled a significant portion of the token supply, raising concerns about potential manipulation. Base clarified that it did not sell the token and emphasized the experimental nature of their on-chain posts. The incident has sparked discussions about the distinction between content coins and meme coins, further highlighting the volatile nature of new token launches in the crypto space.

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