Coinbase’s “Base Is for Everyone” Token Sparks Insider Trading Concerns

The debut of the “Base is for everyone” token on Coinbase’s Ethereum Layer 2 network, Base, is under scrutiny after blockchain analysts flagged possible insider trading. According to Lookonchain, three wallets purchased large quantities of the token just before its official announcement on X, earning a combined profit of approximately $666,000.

One wallet, 0x0992, bought 256.39 million tokens for 1.5 ETH and later sold them for 108 ETH, profiting $168,000 in just over an hour. Wallets 0x5D9D and 0xBD31 made $266,000 and $231,800 respectively, using similar tactics. The token, minted via the Zora on-chain network, soared to a $15 million market cap before crashing below $2 million after Base introduced another coin tied to a FarCon poster, draining liquidity.

Despite the controversy, the token’s value has since rebounded, hitting over $18 million in market cap as of writing, according to DEX Screener. Base creator Jesse emphasized the intent was to normalize on-chain content. However, Coinbase clarified that the token is not an official Base or Coinbase product. “Base posted on Zora, which automatically tokenizes content,” a spokesperson said, reiterating that Base will never sell such tokens.

The episode highlights the risks of boom-and-bust meme coins, which often produce a negative wealth effect—benefiting a few early buyers while leaving most investors with losses. Similar trends were seen in the collapses of other tokens like LIBRA and TRUMP, which triggered major pullbacks in Bitcoin and the wider crypto market.

This incident raises ongoing concerns about transparency and fair access in token launches, especially as blockchain technology increasingly merges with online culture and content creation.