In a notable shift, Coinbase CEO Brian Armstrong announced the end of Base’s content coin initiatives after they failed to gain traction. This pivot follows a stark decline in Base’s total value locked (TVL), which dropped from approximately $5.3 billion in January to around $3.9 billion by mid-February, marking a significant $1.4 billion decrease.
The Ethereum layer-2 network, launched by Coinbase in 2023, embarked on several onchain experiments, but four in particular stood out for their lack of success. The Zora app, aimed at turning social media posts into tradable tokens, experienced temporary excitement but failed to build a sustainable user base. Likewise, attempts to promote creator coins tied to individual influencers backfired, as users often faced losses when creators’ tokens lost value.
Another misstep involved team-backed tokens associated with former Coinbase CTO Balaji Srinivasan and Base's own Jesse Pollak. These coins attracted initial interest but ultimately disappointed, leaving many investors holding the bag. The social-first Base App, pitched as a comprehensive platform, also faced criticism for not delivering the desired features, leading to Armstrong rebranding it as a trading-centric hub.
As activity dwindled, Armstrong acknowledged the miscalculations, stating, “They didn’t work and we pivoted early this year. We messed up, time to turn the page.” This reflects a broader strategy shift, with most resources now directed towards trading activities. Despite the efforts, Coinbase’s revenue saw a decline of 31% last quarter.
With Base's TVL currently around $4.37 billion, the challenge remains whether the revamped trading-focused platform can regain the trust of users disillusioned by previous failures. Armstrong has opened the floor for dialogue with critics, signaling a willingness to adapt.
This material is informational and not a financial recommendation.
