What to know:
- Three wallets snapped up Base is for everyone token before its official announcement on X, pocketing hefty profits.
- Base’s creator Jesse greenlighted the token.
Initial offerings by tokens are frequently subjects of debate, often facing criticism due to their problematic implementation. This can lead to situations where people who allegedly possess early knowledge about upcoming releases, exploit this information for personal gain by making preemptive trades ahead of the actual launch.
The most recent instance is the “Base is open to all” token introduced by Coinbase’s Ethereum Layer 2 solution Base, unveiled on Wednesday. Prior to the formal announcement on date X, three cryptocurrency wallets had already purchased tokens, generating substantial profits, as reported by blockchain detective Lookonchain.
Around 7:30 PM UTC on Wednesday, Base unveiled their new token, which was minted using Zora – an online platform for creators that transforms any content posted on it into tradeable assets in the form of cryptocurrency. The value of this token skyrocketed to over $15 million just after its launch, generating substantial profits for at least three digital wallets that had purchased the coins prior to the official announcement on X.
On platform X, Lookonchain stated that three wallets had previously purchased a substantial quantity of “Base is for All” tokens. These purchases were made prior to Base being published, then subsequently sold, resulting in a profit of approximately $666,000.
0x0992 initially put in 1.5 Ether (ETH), around 2:30 PM UTC, to acquire approximately 256.39 million units of the token. Later, after an official announcement, this address sold its entire holding for 108 ETH, earning a profit of roughly $168,000 within an hour. Similarly, wallet 0x5D9D invested 1 Ether ($1,580) and realized a profit of around $266,000, while the label 0xBD31 walked away with a profit of about $231,800.
As an analyst, I observed a significant drop in the market capitalization of the Base is for Everyone token, which fell below $2 million, following the announcement by Base about another coin for their FarCon poster. This event seemed to have drained liquidity from our token, leading to substantial losses for those who had invested in it.
Since that time, valuations have bounced back, with the market capitalization of Base for All reaching over $18, according to DEX Screener data at this moment. Creator Jesse has endorsed the token, stating, “The intention is to make it commonplace for all content to be on-chain.
Base only posted on Zora
Coinbase made it clear that ‘Everyone Coin’ isn’t the genuine digital currency associated with Base, and they didn’t directly offer or sell this coin. Instead, as reported by CoinDesk, a spokesperson from Coinbase stated that content on Base is tokenized automatically through Zora.
The fine print on Zora’s terms agrees with this, while Base clearly states that they will not trade or sell those tokens under any circumstances.
For clarification, it’s important to note that Base will not transfer these digital tokens. Also, these tokens do not represent the official network of Base, Coinbase, or any related product. The information we provide is innovative and our aim is to continue bridging culture with blockchain technology.
Negative wealth effect
In simpler terms, the frequent ups and downs in smaller cryptocurrencies can result in more people losing money than gaining it. This advantage typically goes to a small group of individuals. This situation often causes a decrease in overall wealth and can lead to a withdrawal of funds from the larger digital assets market due to fear or loss.
As the frequency and magnitude of ups and downs in the value of these cryptocurrencies increases, so does the potential for a detrimental impact on people’s overall wealth.
Or, more informally: The wilder the swings in the prices of these digital coins, the greater the risk they pose to people’s financial wellbeing.
To illustrate, the introduction of LIBRA and TRUMP tokens this year resulted in significant losses for investors, setting a significant peak in Bitcoin‘s and the overall cryptocurrency market’s prices.
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2025-04-17 09:10