Base Faces Criticism After Meme Token Plunges 95% Post-Zora Launch

Base, a Layer-2 Ethereum scaling tool for Coinbase, is under fire following a recently introduced meme coin on its network falling by over 95% in value just hours after release. Introduced via the Zora protocol, the token was highly sought by degens and meme coin aficionados. However, the quick crash has spurred a barrage of criticism of Base’s policies and the possible damage to the larger Coinbase ecosystem’s reputation.

Meme Token Hype and Collapse

Reportedly inspired by a viral online trend, the anonymous meme token debuted with great fanfare using Zora, a minting and distribution system for digital assets. The token acquired momentum on social media sites, including X (previously Twitter), within hours of its launch thanks to influencers highlighting its “moon potential” and early investors injecting liquidity.

Less than 24 hours later, though, the token’s value fell by more than 95%, leaving many retail investors reeling from significant losses. Rapid sell-offs by early buyers and possible insider wallets shown in on-chain data raise questions over pump-and-dump strategies masquerading as natural enthusiasm.

Community Reversal and Trust Problems

The incident set off indignation among Base network members and more general crypto analysts, many of whom charged the platform with supporting predatory token launches. Although Base itself was not specifically involved in the launch, many contend that its expanding meme coin culture is creating a “degen playground” with minimal to nonexistent quality control.

One X user said, “Base has rapidly evolved into the Wild West of meme coins. There are no guardrails and no responsibility; simply exit scams under a layer of hype. Many others demanded that Coinbase and the Base Foundation apply simple rules or cautions regarding highly sought-after tokens.

Base and Zora: Under whose responsibility?

Base offers the infrastructure; the token was distributed utilizing the Zora protocol, a distributed toolkit for digital assets created and shared locally. Operating with a permissionless attitude, Zora itself does not check or censor material on-chain. This decentralization muddles the responsibility story: should Base or Coinbase answer for what outside tools start on their chain?

Industry watchers say the event emphasizes the more general difficulties in juggling decentralization with user safety. “We cannot have it both ways,” said crypto researcher Lana Mendez. “Decentralized ecosystems flourish on openness, but that openness also invites risk especially when platforms like Base are daily adding thousands of new users.”

Base’s meme coin has generated debate before this as well. Several initiatives started with great promise recently, only to see their coins plummet or liquidity withdrawn. Although meme tokens are by nature speculative, recurrent events challenge Base network confidence, particularly as Coinbase presents it as a mainstream, user-friendly Ethereum substitute.

Although the Base team has not yet issued a formal statement, insiders say talks are in progress to increase openness.

Base Continues To Face Criticism 

The 95% decline of the meme token released by Zora has sparked once more the discussion on user safety, openness, and responsibility on newly developed Layer-2 platforms such as Base. Platforms straddling the border between decentralization and consumer protection may come under more pressure to set explicit limits as meme coin fever persists or risk losing user trust over time.