Coinbase's Vampire Attack on the Crypto Bull
Coinbase is in a unique position to execute a vampire attack on the crypto bull, much like Binance did with Binance Smart Chain (BSC) in the last cycle. However, Binance struggled with centralization issues, a weaker developer community, and limited ease of access for retail investors moving from EVMs to its chain.
In contrast, Coinbase has launched Base as a mostly decentralized layer 2 for Ethereum, with plans to increase decentralization over time. Bridging to Base is straightforward, putting it one step away from Ethereum's mainnet liquidity and Coinbase's massive retail onboarding platform.
When the crypto bull fully begins, Coinbase will likely make every effort to draw attention to Base. They're already funding Base projects and have been rumored to artificially boost memecoin prices during Base's launch. Their ability to fund projects, drive token prices, and even list tokens on their own exchange gives them unparalleled influence.
The most significant advantage is Coinbase's potential to funnel retail investors directly onto Base. Retail traders often balk at Ethereum's high gas fees for memecoin trades or NFT activity. Coinbase can promote Base as a cheaper alternative for these activities, suggesting an easy onramp without bridging hassles. This mirrors Binance's success with onboarding users to BSC, where users went to find cheaper trading and gambling.
Imagine the impact if even 50% of the billions Coinbase onboarded into Ethereum last bull market flows directly onto Base this time.
What Makes Coinbase & Base Different from Binance & BSC?
Binance suffered from centralization and low-quality copycat projects flooding BSC. With Coinbase financing legitimate projects and its status as a Layer 2 (rather than an Ethereum competitor), it's less likely to see the rug pulls and scams that plagued BSC.
Base's decentralization also addresses the security and stability concerns faced by Binance.
How to Invest in Base
Base has clearly stated they don't intend to launch a token (likely due to Coinbase's status as a public company). Here are a few ways to gain exposure to Base's potential growth based on my own research and investments:
- $degen: This has become the de facto currency of Farcaster, attracting developer and artist interest. Its market cap dominance indicates strong early growth.
- $mochi & Mochimon NFTs: With Coinbase funding and aims to become the face of Base, Mochi seems well-positioned. Their work on games and merchandise mirrors successful strategies like Pudgy Penguins. Read their Medium articles to learn more.
- $toshi & NFToshis: Toshi offers a similar route for Base investment while focusing on developer tooling, expansion plans, and educational content. Read their Medium article to learn more.
Those bullish on Base might consider both Toshi and Mochi for a diversified approach. While they are often portrayed as direct competitors and trying to become the "face of Base", they are each specializing in different areas and I believe both have a strong future on Base.
Disclaimer: Always do your own research. This is not financial advice.
