Pump.fun strikes based on meme tokens after a loss of value of 90%

Pump.fun strikes based on meme tokens after a loss of value of 90%

• token was automatically shaped from a contribution from Base to Zora without warning.
• pump.fun co-founder Alon Cohen distanced his platform from the event.
• Base defended the launch as part of his onchain content strategy.

The consequences of bases automatically shaped meme coins experiment have awakened widespread concern in the crypto sector, since industry representatives warn of the risks of influencing token starts.

The incident began when a token automatically shaped from an X-contribution from Bases official account via Zora, an onchain social platform.

Without prior notice, the asset began to act immediately and rapidly fell to a market capitalization of $ 17 million-only to fall over 90 % within minutes.

During Base explained that the coin was unofficially and is not sold by the network, the crash has led to accusations of a secret start and inadequate communication.

Onchain data showed that the three biggest wallets kept almost half of the token stock, which fueled speculation about manipulation and inadequate security measures.

pump.fun denies linking to the launch

Alon Cohen, co-founder of the meme-coat launch platform pump.fun, replied to X (formerly Twitter) and explained that neither he nor his platform would be involved in similar token publications.

"No coins from me or @pumpdotfun or any employees (also no 'secret starts')," he wrote and defended himself against the model used by base.

Cohen's remarks were posted shortly after the drop in the price of the token and referred directly to the now notorious " BASE is for all ”assets.

Despite the references to Zora's website, that the token is unofficial and "no expectations", many dealers felt over the speed and lack of transparency during the introduction.

pump.fun in the past was under observation, including incidents in which uncertain livestreams and inappropriate content appeared on the platform.

In this case, however, Cohen emphasized the need for greater ethical guidelines in experimental crypto-environment.

Cohen warns of the influence of token

in his thread found that Cohen found that the introduction of a token is associated with implicit responsibilities. He criticized Bases approach as poor in adequate security precautions and the orientation of the expectations of users.

"If you have a coin and social influence, the responsibility brings with it," he said and asked the creators to adhere to social standards that have developed within the crypto communities.

He found that these standards are not dictated by any single unit-"not by me, pump.fun, coinbase or the president"-but from the "users who are in the trenches every day."

Cohen confirmed that pump.fun will continue to explore the interface between social media and tokenization, but will endeavor to stay in harmony with its user base.

in the meantime defended his step as part of a broader strategy to contain content on. bring to. A contribution to the network made it clear that these tokens are not official assets and are not intended for sale.

Jesse Pollak, the creator of Base, also commented on X and emphasized that the project " builds up a global onchain economy "and that experimentation is crucial for the growth of the ecosystem.

volatility emphasizes the risks of the launch

Despite the violent headwind, the automatic token has shown a partial recovery. On April 12, he was traded with a market capitalization of around $ 16.5 million, Dexscreener data .

However, the controversy have shown the risks associated with the combination of social influence and the output of tokens-especially if this happens without warning or transparency.

The episode has rejected the debates about responsible practices in the decentralized financial sector, especially when it comes to meme coins.

For the moment, platforms like pump.fun make it clear that they will avoid similar models, even if the broader sector experiments to bring the token creation closer to the interaction with timely content.

The article Pump.Fun criticizes base-supported meme token after a loss of 90 % in terms of value.