DeFi sold us a fantasy – an inclusive, intermediary-free financial system. The recent frontrunning scandal surrounding the launch of the "Base is for everyone" token on Coinbase's Base Layer 2 begs the question: at what cost? Are we sacrificing ethical integrity for the sake of inclusivity, creating a playground where only a select few truly benefit?

This isn’t merely a matter of a handful of wallets cashing in on the pump and dump. This is deeper than merely the soul of DeFi itself.

Is "Everyone" Just A Marketing Ploy?

Let's be real. The slogan “Base is for everybody” may be hard to disagree with. It’s collaborative, it’s democratic, it’s egalitarian, and it does a great job of projecting this inspiring future where everybody can get involved in this cool new financial revolution. Look closer. Three wallets, alleged to be in possession of insider information, snatched up a huge quantity of tokens ahead of the announcement. They wound up taking home a whopping $666,000 in profit. The token’s market cap exploded to $15 million. After a subsequent announcement of a new token, it immediately plummeted to below $2 million, thereby leaving thousands of investors holding the bag with huge losses.

Does that sound like "everyone" to you? Or does it sound like the same old story: a rigged game where insiders win and the average Joe loses?

It might be tempting to write this off as just another crypto oddity, but this incident is bearish via the wealth effect. Only a few profit wildly, while the rest get scorched. It undermines public trust, and it increases their reluctance to engage. This solidifies the notion that DeFi is just a rich people’s get-rich-quick-scheme. This is not innovation, it’s exploitation in blockchain clothing. Similar to LIBRA and TRUMP, this token launch obliterated investor wealth in the millions.

The kicker? Base creator Jesse’s endorsement of the token, saying their intent is to “normalize putting all content on-chain.” Normalizing this kind of behavior? This is not the future I agreed to work toward.

Frontrunning: The DeFi's Dirty Secret?

Frontrunning has a long history in the traditional financial world. In DeFi, it’s worse since it’s compounded by the speed and transparency of blockchain technology. With the right resources and technical skills, individuals are able to keep a close watch on transactions. They can identify the most lucrative opportunities and leapfrog the competition, leaving everyone else in the dust.

Think of it like this: imagine going to a concert, only to find out that a select group of people were let in early to grab the best seats, while you and everyone else waited outside. That’s the excitement many investors are riding on today. It generates this anger and outrage precisely because at its core, it is a betrayal of the idea of fairness itself.

The same goes for “Base is for everybody”—the statement that this is not an official crypto of Base is a weak retort. The link is obvious, the approval is rampant, and the impact is irreversible. We need to ask ourselves: what responsibility do platforms like Base have to protect their users from these kinds of exploitative practices?

Can DeFi Ever Be Truly Ethical?

This scandal isn't just about one token. It's a symptom of a larger problem: the lack of ethical considerations in the rush to build the next big thing in DeFi. We’re so caught up in the glamour of innovation and disruption that we ignore the carnage that gets left in our wake.

Can we create an ethical DeFi environment I think it can be, but it’s going to take a major change in mentality.

This isn't about stifling innovation. It’s not about putting a handful of billionaires on Mars and calling it a day. We need to be able to hold platforms accountable when they decide to promote content, or create the opportunity for market manipulations.

  • Greater Transparency: We need more transparency around token launches and trading activity.
  • Stronger Regulation: While DeFi is meant to be decentralized, some regulation is necessary to prevent market manipulation and protect investors.
  • Ethical Frameworks: DeFi projects need to adopt ethical frameworks that prioritize fairness, transparency, and investor protection.
  • Education: We need to educate people about the risks of investing in DeFi and empower them to make informed decisions.

The “Base is for all” debacle should be the canary in the coal mine. We shouldn’t allow the clamor for “everyone” to drown out the need for ethical high ground. The future of DeFi depends on it. You have the power to demand better from these platforms. Help steer the financial system toward being more inclusive, equitable, and ethical! Otherwise, "everyone" will just be a punchline.

The "Base is for everyone" debacle should serve as a wake-up call. We can't let the pursuit of "everyone" come at the expense of ethical integrity. The future of DeFi depends on it. It's up to you to demand better from these platforms and advocate for a more inclusive, equitable, and, most importantly, ethical financial system. Otherwise, "everyone" will just be a punchline.