Coinbase's Base Faces Backlash Over 'Contentcoin' Experiment as MOVE Token Plummets 73% Following Delisting

Coinbase's Ethereum Layer 2 network, Base, is facing intense criticism following a controversial 'contentcoin' experiment. On April 16, a simple post stating "Base is for everyone" on the Zora platform was automatically converted into an ERC-20 token via Zora's protocol. This triggered a speculative frenzy, with the token's market capitalization soaring to over $17 million within minutes, only to collapse by approximately 95%, erasing more than $15 million in value in a classic liquidity trap.

On-chain analysis by Lookonchain revealed that three wallets accumulated large positions before Base's official post and sold shortly after, netting roughly $666,000 in profits. Data also indicated that volume bots significantly contributed to the token's extreme volatility. The token later staged a partial recovery, trading around $0.011 against Wrapped Ethereum (WETH) at the time of reporting.

The incident sparked harsh criticism on social media, with users accusing Base and Coinbase of irresponsibly endorsing a pump-and-dump scheme. In response, Base issued a statement clarifying it did not create or endorse the token, emphasizing it was an automatic mint by Zora's protocol and part of a public experiment to bring content onchain. Despite disclaimers on the Zora token page warning of high risk, community members and industry figures like AP Collective CEO Abhishek Pawa and Pump.fun co-founder Alon criticized the lack of guardrails, arguing it eroded trust and caused real financial harm.

In a separate but concurrent development, Coinbase announced the delisting of the MOVE token from Movement Labs, effective May 15. This decision followed a $38 million USDT sell-off linked to a terminated market maker associated with the project, alongside leaked chat logs raising concerns about coordinated manipulation. The Movement Network Foundation launched an internal probe and promised a token buyback, but the process remains incomplete.

Following Coinbase's delisting announcement, the MOVE token price fell over 20% to around $0.18, later stabilizing near $0.20. The token is now down 73% from its all-time high of $0.70, with its market cap dropping below $500 million. This decline occurred despite a broader crypto market rally. Binance also took action by banning Web3Port, a related entity. Community backlash within Movement Labs' Telegram channels has been severe, with users expressing confusion and anger over delayed airdrops and the buyback scheme.