Coinbase and its Ethereum layer-2 Base are drawing pushback from traders and builders who argue that its creator token experiment failed to turn a viral social media moment into sustained onchain activity.
The backlash came after YouTuber Nick Shirley launched a token on creator platform Zora. Shirley’s token briefly rode his online fame to about a $9 million fully diluted value before sliding to $3 million. Most of the volume came from existing traders rather than new users.
In a widely shared critique, trader and content creator notthreadguy argued that if Shirley couldn’t make the model work, nobody could.
“If there was ever a time that these content coins, these creator coins were going to work, it was Nick Shirley right here, right now, in this moment. And it just didn’t work,” he said, adding that there is no demand to trade content coins, beyond “trenchers on trenchers.”
His comments landed against a backdrop of other Zora‑linked experiments on Base that saw sharp rises and falls, with little evidence of sustained demand.
Shirley recently emerged as a political flashpoint after his unverified daycare fraud allegations were amplified by figures including Elon Musk and senior Trump administration officials. The claims became part of broader discussions cited by the administration when it announced a freeze on child care funds to Minnesota.
Related: Is Zora turning Ethereum L2 Base into a Solana killer?
SocialFi stats versus onchain reality
Base is increasingly marketed as a decentralized social platform, thanks to earlier experiments like Friend.tech, followed by successors like Farcaster and Zora that draw creator activities.
Reports project the SocialFi market to reach more than $10 billion by 2033, with a compound annual growth rate of 17.5% from 2025 to 2033. Still, even high‑profile platforms like Friend.tech have seen daily active users peak near 80,000 before sliding back below the 10,000 mark.
Related: After Zora airdrop goes awry, what’s next for Web3 creator economy?
Mounting pressure on Base’s strategy
The gap between headline growth and stickiness is feeding discontent among Base builders.
Developers and community members have complained that a run of high‑profile creator coins promoted through official channels, including internal “team” tokens and Zora launches, has created perceptions of favoritism while leaving retail participants exposed when liquidity evaporates.
“If you’re not part of the favored narrative, you effectively don’t exist. At that point, what is the incentive to build on Base?” questioned one Base builder.
Coinbase CEO Brian Armstrong has started taking to community members in response, posting that he had had a “great chat” with notthreadguy and received “lots of good ideas.”
