Original source: TechFlow
On-chain assets have become active again recently.
With the birth of the Hundred-fold Golden Dog RFC on Solana, the Base chain is also ready to move.
At around 3 a.m. today, the official X account of Base, which has nearly 900,000 followers, posted a post: Base is for everyone. The post was accompanied by a picture showing the slogan of the same name.
What makes people feel even more FOMO is that Base officials directly replied to this comment section with Coined it and linked to the meme coin Base is for everyone on the Zora platform.
Contract address: 0xD769d56f479E9E72a77bB1523e866A33098Feec5
Base founder Jesse also forwarded this post, and the official call action quickly ignited market enthusiasm.
As an important part of the Coinbase ecosystem, every move of Base has attracted much attention. The endorsement of the official account is regarded as a safety signal by many Degens. In the current situation where there are not many gold dogs in the market, this also gives everyone greater confidence to get on board.
Pull 1 hour, Rug 5 minutes
Since the post was published, DEXSCREENER data showed that the price of the Meme token of the same name gradually increased within an hour, soaring from US$0.0001 to US$0.012, an increase of 120 times, and the market value increased from tens of thousands of US dollars to 20 million US dollars.
However, the good times did not last long.
This officially-branded Meme coin staged a classic one-hour pull and five-minute rally.
Around 4:30 in the morning, the market suddenly reversed, and the market value of the token fell from 14 million to 1.4 million in just 5 minutes, a drop of 90% at one point.
After the token plummeted, the communitys mood quickly turned from excitement to anger, and the discussion volume on the X platform surged. Many users directed their criticism at Base officials, satirizing that their slogan Base is for everyone was reinterpreted as open to everyone, including Rug Pull people.
What is more serious is the damage to Bases official image.
Some users directly accused Base officials of destroying the brand trust. Rug, a coin endorsed directly by Base, seriously damaged its public image. In addition, due to Coinbases regulated public trading status, the public had a highly negative view of it, resulting in Jesse Pollak and Base leadership being severely criticized.
Since Base has also been on the path of compliance, this negative event is also believed by the community to attract more potential regulatory scrutiny.
And beyond the negative emotions, Base is for everyone is not completely Rug.
After the plunge, the token price began to slowly recover around 5 a.m. At press time, the tokens market value has recovered to around $8 million. Trading volume during this period was still active, with a total trading volume of $27.1 million in 24 hours, and the number of buyers increased from around 4,000 after the plunge to 7,300, indicating that there are still speculators entering the market.
There may be two reasons for the rebound: first, speculators believe that prices have bottomed out and re-enter the market to buy at the bottom; second, some large investors may repurchase at low levels to stabilize prices or make further profits.
Whose selling caused the crash?
The plunge of the Base is for everyone token within 5 minutes was not without reason, and on-chain data revealed key clues behind the plunge.
After in-depth analysis, analyst @dethective found that the trigger for the plunge came from the operation of a mysterious address.
Mysterious address: 0x099246ca997acf47ada682c9c60f9ed0954ad960
This address purchased tokens worth 1.5 ETH (about $2,400) just 1 minute before Base’s official post (21:13 UTC on April 16), and then continued to sell them at the high price (0.012 US dollars).
The post showed that the sale made a profit of up to $200,000, an astonishing profit margin.
On-chain transaction records further confirmed that part of the sellers’ profits were transferred to an address called “bandemic.base.eth.”
At the same time, we also used GMGN to look at the overview of this address. In addition to the big win of Base is for everyone, this address is also a frequent target of Meme coins on other Bases, and is marked as smart money by the platform.
Past performance shows that the profit range of this address is usually in the range of several hundred to several thousand dollars. This time, it has obtained extraordinary gains in Base is for everyone.
But for most investors, after a drama, if they seriously participate and chase the ups and downs, they may face the classic dilemma of the price is still there but the position is gone.
What can we learn from this incident?
First of all, abandon the official high-sounding cognition. Official endorsement does not mean safety. Official meme coin projects may also involve internal transactions and pump-and-dump.
Secondly, when conducting actual operations, monitor the movements of large investors in real time to avoid becoming a buyer. For example, paying attention to the concentration of token holdings (the proportion of the top 10 holders) and abnormal trading volume can provide some reference.
From a deeper perspective, the root cause of the controversy surrounding Base may lie in errors in strategic execution.
Base attempts to attract users and enhance the vitality of the ecosystem through the promotion of meme coins. There is nothing wrong with the idea of putting culture on the chain itself.
However, in its implementation, Base ignored the community’s core needs for transparency and fairness.
As an important partner of the Base ecosystem, Zora’s TGE (token generation event) mechanism may be a major driving force behind the incident. Although the community’s speculation of “Base-Zora joint pull-up” has not been confirmed, Base should disclose the details of its cooperation with Zora to dispel doubts.
Base did not fully disclose the risks when promoting the token, nor did it communicate with the community in advance, which led to a crisis of trust. If it were to explain the experimental promotion later, it would seem a bit pale.
Finally, it’s not that Base is for everyone, but that Risk is for everyone.
Keep the risks in mind and proceed with caution.
