Unrelated Tokens Spawned in Response to Coinbase’s Announcement of Ethereum L2 Network Base Test Network

02/24/2023 05:03 • Digital Disruptors • 88 views

On February 24, Coinbase announced the launch of the Ethereum L2 Network Base Test Network yesterday, but according to Token Sniffer, a data website of the encryption monitoring company Solidus Labs, since the announcement, at least four new “analog” tokens have been created, such as “Base”, “Base token” and “Coin Chain”, but these tokens have nothing to do with Coinbase, and Coinbase does not intend to issue new network tokens.

After Coinbase announced the launch of the Base test network, several “simulated” tokens appeared

Analysis based on this information:

On February 24th, Coinbase, one of the largest cryptocurrency exchanges in the world, made an announcement about the launch of a new Ethereum L2 Network Base Test Network. The message was intended to provide developers with an opportunity to test the network and ensure that it could handle the expected increase in user activity.

However, according to Token Sniffer, a data website from Solidus Labs, a monitoring company for cryptocurrencies, since the announcement, several new tokens have been created that are seemingly unrelated to Coinbase’s development. The four new tokens, including “Base,” “Base token,” and “Coin Chain,” have appeared on the Ethereum blockchain, but Coinbase has clarified that these tokens have nothing to do with its development and that it has no intention of issuing any new network tokens.

It is still not clear who is behind these tokens and what they are trying to achieve. As the tokens have been created in response to Coinbase’s announcement, it is possible that they are designed to manipulate the market or to confuse CEX users into trading with these tokens as if they were related to Coinbase’s project.

Token creation on the Ethereum blockchain is relatively simple and requires a small fee for gas, which is likely what has driven the creation of these tokens. From an investor’s perspective, these tokens could potentially cause confusion and lead to losses if they are not thoroughly researched before investing in them. Therefore, investors must be cautious when trading cryptocurrencies and conduct thorough research beforehand.

In conclusion, although Coinbase’s announcement regarding the Ethereum L2 Network Base Test Network was significant news for developers, it has led to the creation of unrelated tokens on the Ethereum blockchain. The intentions behind these tokens are unclear, but they could potentially harm investors who are not adequately informed. Therefore, it is crucial that investors are cautious and conduct thorough research beforehand.

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