At least three wallets acquired the 'Base is for everyone' tokens before the official announcement, realizing significant profits. The tokens, created by Base, Coinbase's Ethereum Layer 2 solution, were minted via Zora, facilitating the trading of posts shared on the network. Crypto wallets made substantial returns; for instance, one wallet invested 1.5 ether to gain approximately $168,000 within an hour. Another wallet's investment of 1 ether resulted in a profit of $266,000, while a third made $231,800. However, after the initial gains, the token's market capitalization dropped to under $2 million as liquidity drained due to market fluctuations. Coinbase clarified that these tokens are not the official cryptocurrency of Base, specifying that Base would never sell these tokens. The rise and fall of such tokens can create a negative wealth effect in the market, causing significant losses for those who enter late into the token. The incident underscores concerns surrounding token launches and insider trading practices in the crypto space.

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