Coinbase Clarifies It Has No Ties to Base Memecoin Crash
Coinbase denies involvement in a memecoin on Base that surged to $17.1M then plunged 90% within minutes.
- Memecoin on Base hit $17.1M before crashing 90% in 20 minutes
- Coinbase says it didn’t issue or sell the token
- Zora auto-tokenized the post, causing confusion
A memecoin linked to Coinbase’s Base blockchain made headlines after an explosive market surge — followed by a dramatic collapse. Within just 20 minutes, the token’s market cap shot up to $17.1 million, only to plummet by over 90%. This wild ride left many investors reeling and sparked speculation about Coinbase’s involvement.
But Coinbase has quickly stepped in to clear the air. A company spokesperson stated, “This is not an official Base token, and Base did not sell this token.” The clarification aimed to separate the popular crypto exchange from the controversial coin, which had quickly gained traction due to a post shared on Zora.
What Really Happened?
The confusion stemmed from a post made on Zora, a platform that allows users to publish content that is automatically tokenized. According to Coinbase, the content shared on Zora was misinterpreted by the community as an endorsement or launch of a new official token on the Base network.
Zora’s auto-tokenization feature minted the content into a tradable asset, sparking a speculative frenzy. As hype around the token grew, prices surged — but the lack of clarity and official backing soon caused the bubble to burst.
Coinbase’s Stand and Market Reaction
Coinbase has made it clear that there is no official Base token, and that this incident was not connected to any product or launch by the Base team. The sharp crash in the token’s value highlights how misinformation and misinterpretation in the crypto space can have real financial consequences.
This event is a reminder of the risks tied to meme-driven trading and the importance of verifying the legitimacy of crypto assets before investing. The Base memecoin crash adds to the growing list of cautionary tales in the ever-volatile crypto market.
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