Is blockchain basecoin really a scam?
NAIROBI (Coinchapter.com) – The rapid rise of the foundational blockchain Basecoin has raised concerns about scams and security breaches in this emerging ecosystem. As users flock to the platform in search of the next big cryptocurrency opportunity, a worrying trend has emerged. New data shows that a significant portion of these tokens pose serious risks to investors.


Common vulnerabilities in basic blockchains. Source: Cointelegraph
Analysis by Cointelegraph Magazine shows that 90.8% out of 1,000 new base blockchain tokens failed to implement at least one of three key security measures. These measures include locking liquidity, verifying contracts, and no honeypots. These vulnerabilities make unsuspecting users vulnerable to "rug pulls." Developers can abscond with funds, while honeypots prevent owners from selling their tokens.
Security issues continue to emerge
The Dencun upgrade is a pivotal moment for Ethereum’s second-layer ecosystem. It reduces transaction costs and makes it easier for users to participate in the DeFi space. As a result, the total locked value (TVL) of Base, Ethereum’s second-layer blockchain built by Coinbase, has surpassed $4 billion. A large part of this activity is due to the surge in the number of Base coins, with investors looking to make a lot of money with a small initial investment.


Base TVL chart. Source: L2BEAT
This not only has a serious impact on the financial situation of investors, but also poses a threat to the credibility of the underlying blockchain ecosystem. According to David Schwed of Halborn, the large number of vulnerabilities is often caused by ignorance or negligence of the creators. This is especially true when the token is created more for entertainment or to challenge the status quo.
The data shows that 17% of tokens on Base are obvious cryptocurrency scams, which is a number that cannot be ignored. 121 projects have been identified as potential honeypots, and another 48 have imposed sales taxes of up to 100%. The risk of being deceived is not ridiculous. This threat is not just a technical failure, but a deliberate plot to defraud investors.
Memecoin chaos on the base blockchain
The surge in activity on the base blockchain Basecoin has not gone unnoticed, with the platform’s total locked value (TVL) and trading volume soaring. In the week ending April 2, the number of new tokens launched on Base surged to 4,000. This is a significant increase compared to the 1,300 launched a week earlier.
Moreover, this memecoin craze has had a substantial impact on the broader decentralized finance (DeFi) landscape. While Solana, another fast and low-cost blockchain, has maintained around 19,000 new projects per week, its decentralized exchange (DEX) trading volume has dropped by as much as 59.5%. On the contrary, four of the top five Base DEXs have seen positive changes in trading volume. Uniswap leads with a gain of 147% to $405.09 million.


Basic blockchain meme coin rankings. Source: CoinGenko
Notably, the leading base blockchain memecoins include Brett (BRETT), Degen (Base) (DEGEN), and Toshi (TOSHI). These tokens have seen significant price fluctuations over the past week, with BRETT up 14.1%, DEGEN down 9.9%, and TOSHI up 54.2%. However, as a broader analysis reveals, the high trading volume and market capitalization of these memecoins do not necessarily mean they are legitimate or secure.
More than anything, the Base blockchain memecoin phenomenon highlights the challenges facing platforms seeking mainstream adoption. Certainly, the increase in new users and funds is positive, but scams and security risks remain prevalent. As the industry grows, Base must strike a balance between innovation and strong consumer protection. Only then can decentralized finance reach its full potential.