Facebook iconLinkedin iconTwitter iconJoin the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.Secure Your SeatFacebook iconLinkedin iconTwitter iconJoin the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.Secure Your Seat
Expect crypto punters to jump on anything with a distant relation to a trending topic to turn profits – as illogical as that may be to a seasoned equity investor.
Base Protocol’s BASE tokens jumped, then dumped, in the past 24 hours following an announcement by crypto exchange Coinbase about the launch of its layer 2 blockchain Base.
Base, which has a tiny $1 million market capitalization as per CoinMarketCap, spiked from $1.90 in European hours on Thursday to over $6.80 after Coinbase’s Base was announced – a gain of as much as 250% for early participants.
Base tokens jumped, then dumped, following the launch of Coinbase' Base. (CoinMarketCap)
Prices gradually corrected amid heavy profit taking, with BASE dropping overnight to trade just over $2 in Asian morning hours on Friday.
The jump came with a spike in trading volumes, from $46,000 per day to over $566,000 at the price peak, to over $1.1 million at writing time on Friday. These tokens are traded at the crypto exchange Gate and on the decentralized exchange PlasmaSwap.
Base token’s own model is rather novel: Its creators say BASE represents the entire crypto industry, with its price pegged to the total market cap of all cryptocurrencies at a ratio of 1:1 trillion.
“BASE allows traders to speculate on the entire crypto industry with one token,” the token’s site says. That narrative has, however, failed to fully catch on with crypto investors.
Meanwhile, Coinbase’s Base is off to a rocky start. Thursday’s testnet rollout racked up user complaints and jabs on Twitter, as CoinDesk reported, with network experiencing problems, and users flooding social media to complain about its overall functionality.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.
Trending1FinanceOasis Exploits Its Own Wallet Software to Seize Crypto Stolen in Wormhole HackFeb 24, 20232PolicyCrypto Investors' $28M ‘Black Thursday’ Lawsuit Against DeFi Giant Maker Dismissed by US JudgeFeb 24, 20233The Breakdown, With NLWClass-Action Lawsuit Accusing Digital Basketball Cards of Being Securities Allowed to ProceedFeb 24, 20234MarketsCrypto Markets Analysis: Bitcoin Falls for the Week Amid Inflation, Rate Hike FearsFeb 24, 2023