Unrelated BASE Token Jumped 250% After Coinbase Starts Layer 2 Network Base

Coinbase has specifically said that the company has no intentions to introduce a token for its new blockchain as of Friday.

As ridiculous as it may seem to a seasoned equities investor, expect crypto punters to leap on anything with a remote resemblance to a current issue in order to benefit.

Base Protocol’s BASE tokens have risen and then fallen in value in the last 24 hours as a result of Coinbase’s announcement regarding the launch of its layer 2 blockchain Base.

Base, which has a market value of less than $1 million according to CoinMarketCap, jumped from $1.9 in European hours on Thursday to more than $6.8 after Coinbase’s Base was revealed – a gain of up to 250% for early players.

Prices eventually corrected amid strong profit-taking, with the base falling overnight to trade just over $2 in Asian early hours on Friday.

The increase coincided with an increase in trade volumes, which increased from $46,000 per day at the price top to over $566,000 at writing time on Friday. These tokens may be purchased on the cryptocurrency market Gate and the decentralized exchange PlasmaSwap.

The Base token’s architecture is somewhat unique: according to its designers, BASE symbolizes the whole crypto sector, with its price tethered to the total market worth of all cryptocurrencies at a 1:1 trillion ratio.

“BASE allows traders to speculate on the whole crypto sector with a single token,” according to the currency’s website. That story, however, has yet to catch on with cryptocurrency investors.

Meanwhile, Coinbase’s Base is having difficulties. According to CoinDesk, Thursday’s testnet release drew user complaints and insults on Twitter, with the network suffering issues and people flooding social media to complain about its general performance.