Coinbase’s Base Faces Criticism Over Creator Token Experiments

Coinbase and its Ethereum-based layer two network, Base, have promoted the idea that creators can use blockchain technology to build strong and lasting communities

Through platforms such as Zora, Base encourages content creators to launch their own tokens. Recent events, however, suggest that this approach may not be working as expected.

Creator Token Gains Attention but Fails to Last

The criticism grew after YouTuber Nick Shirley launched a creator token on Zora, a creator-focused, onchain social and Non-Fungible Token (NFT) platform. At first, the token attracted attention and reached a value of about $9 million dollars

However, the success did not last long. The token’s value later fell to about $3 million. This was partly because most of the trading came from existing crypto traders, not from new users.

This showed that the token did not bring many new people into the ecosystem. Nick Shirley later became involved in a political controversy after unverified allegations about daycare fraud spread online

Public figures and government officials discussed these claims, and they were referenced during a decision to freeze childcare funding in Minnesota. While this situation was separate from the token launch, it increased public attention on projects connected to him.

Doubts Grow Over the Long-Term Value of Creator Tokens on Base

Many traders and developers on the Base network started to question whether creator tokens truly have real demand. Others argued that if a well-known content creator could not maintain interest in his token, then smaller creators would likely struggle even more

Similar projects on Zora also experienced quick price increases followed by sharp declines, with no lasting activity.

Base, the fast growing L2 network, often presents itself as a platform focused on social interaction and creator activity. Earlier platforms such as Friend.tech explored this idea, followed by newer platforms like Farcaster and Zora

Industry reports predict strong growth for social finance in the coming years. However, past platforms have found it hard to keep users active for a long time. User numbers often grow fast and then drop just as quickly.

Concerns Grow as Coinbase Tries to Rebuild Trust

Developers and community members on Base have raised concerns about fairness. They feel that tokens shared through official channels get more attention, while other tokens are overlooked.

When trading activity fades, everyday users often face losses. This situation has caused some builders to question whether it is worth continuing to build on Base.

Coinbase CEO Brian Armstrong has responded to some of these concerns by speaking directly with community members

He has stated that these discussions provided valuable feedback. Even so, many users believe that Base must show clear improvements before trust can be restored.

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