Jesse Pollak’s Tweet Triggers Unprecedented Ethereum Market Activity

Jesse Pollak’s tweet spurred significant market activity in Ethereum, causing its price to rise by 2.3% and trading volume to hit 15.4 million. The ERC-20 token ‘Base is for Everyone’ saw rapid market capitalization growth before a subsequent drop. This event raised concerns over market manipulation and highlighted the influence of prominent figures in the cryptocurrency sphere on market dynamics.

Jesse Pollak’s tweet significantly impacted Ethereum, resulting in a price surge and a remarkable increase in trading volume. As head of Coinbase’s Layer 2 network Base, Pollak’s cryptic message “Never forget” created discussions around recent controversies in tokenizing tweets amidst a strained market.

The official Base Twitter account announced, “Base is for everyone,” linking to the Zora platform, where content can be minted as tokens. Following this, the ERC-20 token ‘Base is for Everyone’ emerged, generating a market capitalisation of $17 million in twelve hours before fluctuating dramatically to $23 million after a 94% drop.

Pollak’s tweet spurred considerable trading, with Ethereum’s price climbing 2.3% from $3,380.45 to $3,456.78 within 24 hours, aided by a trading volume of 15.4 million ETH. During this period, associated tokens Uniswap (UNI) and Chainlink (LINK) also saw price rises of 1.8% and 1.5%, respectively.

The efficiency of the Ethereum market indicated a 25% increase in BASE trading volume, rising from 10 million to 12.5 million. Additionally, active addresses surged 18% to 23,500, with transactions climbing 20% to 45,000 shortly after Pollak’s announcement, reflecting a robust reaction.

Concerns over market manipulation arose, particularly due to the high concentration of token ownership, with three wallets possessing 47% of the supply, one holding 25.6%. Analysts noted this concentration led to significant price volatility following the initial surge.

Pollak defended the project as an artistic exploration into tokenizing content, asserting it fosters on-chain cultural development. This incident ignited debates around the responsibilities of influential figures within cryptocurrencies and their potential effects on the market, highlighting the need for better transparency in token practices to safeguard retail investors.