After a short while, following the launching of Coinbase Global Inc. ‘s blockchain, known as Base, a couple of new crypto tokens having similar sounding names seemed to have cropped up. It is also understood that the concerned tokens have absolutely no connection whatsoever with the network.
The Ethereum-backed Base that was launched on the testnet was, besides other factors, for carrying out an effective debugging exercise before its official launch. The network happens to be an ecosystem, which provides all of the connected users and developers the opportunity of creating decentralized applications, otherwise known as dApps, and will also contain the on-chain products of Coinbase.
However, it seems like a little while after the soft launch, it has suddenly sprung up somewhere around for fresh imitation tokens, which in actuality, happen to be coins that have nothing to do with Coinbase. This is despite the fact that the entity, as it is, has made it absolutely clear that it will not be delivering any kind of fresh network token. This happens to be relevant information gathered from Token Sniffer, which happens to be a data site put up by Solidus Labs, a crypto surveillance company. The names given to the new coins happen to be Base, Base token, and Coin Chain.
It happens to be common knowledge for persons who are connected with the crypto market that was taking advantage of product launches, and the like attracts the attention of companies who eagerly await their turn to be able to cash in. For instance, following OpenAI’s chatbot, ChatGPT, a number of crypto tokens connected with artificial intelligence seemed to have mushroomed. According to the Co-Founder of the decentralized exchange Vertex Protocol, Darius Tabatabai, people who purchase these tokens become victims of massive fraud.
Coinbase happens to be the very biggest cryptocurrency exchange in the U.S. and has been able to attract the attention of some fraudsters ever since the launch of its Layer 2 blockchain. This is known to work on the Ethereum network transactions, making them faster and more economical. The project happens to be associated with Optimism.
As per information received from CoinGecko, the value of the BASE token increased by 200% following the Coinbase incident. Unfortunately, circumstances do not seem to be currently in favor of Coinbase as it has declared a loss of $557 million, with a revenue decline of 75%, so far as the fourth quarter goes. It has also been compelled to do away with 20% of its staff members.
