The creator token experiment on Base, an Ethereum layer 2 network operated by Coinbase, has not met expectations, sparking ongoing debate about the sustainability of the SocialFi model.
YouTuber Nick Shirley's creator token, issued through the Zora platform, soared to approximately $9 million in fully diluted value (FDV) immediately after launch, but then plummeted to around $3 million within days. Trading activity revealed that the majority of transactions were driven by existing cryptocurrency traders, rather than new user acquisition.
“The fact that even in cases with favorable conditions, it failed to generate sustained demand suggests that the model itself needs to be reviewed,” said trader and creator ‘notthreadguy.’
Some other creator tokens issued within the base ecosystem have also seen transactions rapidly decline after initial interest. Friend.tech, previously highlighted as a social pie, also experienced significant volatility in user metrics after its launch, suggesting similar limitations.
Coinbase CEO Brian Armstrong stated that he is reviewing community feedback regarding the criticism, but it remains unclear whether this will lead to structural changes in the future. Industry insiders believe that while the growth potential of the Social Pay market remains, establishing a model that can convert short-term interest into long-term engagement remains a key challenge.
