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Base App Pivots to ‘Trading-First’ Six Months After SocialFi Rebrand

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Base App Pivots to ‘Trading-First’ Six Months After SocialFi Rebrand

Base lead Jesse Pollak said the web3 app will focus more on trading features, dialing back its social-heavy approach.

Jesse Pollak, Coinbase’s head of Base and Base App, announced that the Base App will shift its product focus to trading after mixed user feedback on its social-heavy features.

In an X post on Wednesday, Jan. 14, Pollak said the centralized exchange is now refocusing the Base App “to be trading-first,” signaling a shift to a finance focus for the web3 app after months of debate over its direction.

Base is the Ethereum Layer 2 developed by Coinbase, while Base App is the rebranded version of what was Coinbase Wallet, the CEX’s self-custody web3 wallet app.

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After the company positioned the rebranded product as a “super app” in July of last year — combining crypto wallet, trading, social, and other functions — Pollak said “hundreds of thousands” of users indeed tried it for creating, trading, and building. But, as Pollak revealed this week, the response to the Base App’s social features was mixed.

“The app felt overly focused on social,” he wrote, adding it felt “too close to web2” and didn’t reflect the range of assets people want to trade. Pollak also wrote that users are asking for “more high quality assets” and a feed that shows not only social tokens.

Finance-First UX

“We’re going to lean into a finance-first UX. We believe it makes more sense to layer social features on top of finance, than the other way around,” Pollak wrote on X.

The shift follows a similar move by Farcaster, a prominent SocialFi protocol that recently stepped back from its original social-first model to focus more on trading.

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Commenting on Base’s refocus, Dragonfly Capital partner Rob Hadick said in an X post on Jan. 15 that the move reinforces the view that blockchains work best for moving money, saying that “Base may have been the last meaningful hold out” of the social-first approach in web3.

The change also follows Coinbase CEO Brian Armstrong’s public request for feedback late last year, in which he questioned whether the Base App should prioritize trading, social features, or a mix of both.

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Crypto World

Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday

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Oil prices jumped more than 3% on Monday, pushing Brent crude above $116 a barrel. West Texas Intermediate (WTI), the US benchmark, climbed to roughly $102 per barrel.

The latest rise comes as the US-Israel war on Iran entered its fifth week with no signs of abating.

Oil Extends Its War-Fueled Rally 

Several escalatory developments over the weekend fueled the surge. President Donald Trump told the Financial Times he could possibly seize Kharg Island, the terminal that handles roughly 90% of Iran’s crude exports.

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The US president struck a mixed tone on diplomacy with Iran, saying he was “pretty sure” of making a deal with Iran but conceding that talks could still collapse.

Meanwhile, Iran’s parliament speaker warned that Tehran would “set them on fire” when American forces arrived and promised consequences for US-allied nations in the region. 

The oil price surge is far from over, according to market analysts, who warn that the prolonged closure of the Strait of Hormuz could drive crude even higher.

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“A scenario in which the Strait remains closed for an additional month would be consistent with oil prices rising towards $150/bbl and constraints on industrial consumers of energy supply,” Bruce Kasman, global head of economics at JPMorgan, said.

According to Bloomberg, US officials and Wall Street analysts have also begun discussing the possibility of crude reaching $200 per barrel.

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Asian Stocks Tumble, Crypto Feels the Pressure

The energy shock rippled across Asia. Google Finance data showed that Japan’s Nikkei 225 fell over 4.5%, while South Korea’s KOSPI dropped more than 4.3% as import-dependent economies repriced risk.

The volatility has spread to crypto markets, with asset prices dipping early in the morning before rebounding. 

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“The market briefly crashed just now — ETH dropped below $1,940 and BTC fell below $65,000,” Lookonchain reported.

Oil above $100 per barrel continues to pressure risk assets by fueling inflation expectations and delaying anticipated Federal Reserve rate cuts.

The post Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday appeared first on BeInCrypto.

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

Lido’s decentralized autonomous organization is considering a one-off $20 million buyback of its governance token to address so-called price dislocation, which is at “historically depressed levels” relative to Ether, according to the DAO. 

The proposal, submitted Friday, seeks permission to swap 10,000 Lido Staked Ether (stETH) tokens, currently worth $20 million from the DAO’s treasury for Lido DAO (LDO), arguing that LDO is undervalued.

“This is not a routine fluctuation. It represents one of the most significant dislocations between LDO’s market price and its underlying protocol fundamentals in the token’s history.”

A token buyback of this size could boost the price of the token, which has fallen roughly 96% from its all-time high. In November, a Lido DAO member pitched an automated buyback mechanism for LDO to improve the token’s price. However, that proposal hasn’t been implemented.

LDO’s change in price relative to ETH since 2024. Source: Lido DAO

Lido DAO pointed out that LDO is trading at a steep discount to Ether (ETH) at a ratio of 0.00016, roughly 63% below its two-year median.

This is despite the protocol holding the top spot of the Ethereum liquid staking market, with a 23.2% share of staked Ether, according to Dune Analytics data. The protocol’s dominance has even been flagged as a centralization risk to the network in previous years.

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Share of Ethereum network validators. Source: Dune Analytics

Related: Ethereum builders propose ‘economic zone’ to tackle L2 fragmentation 

LDO is currently trading at $0.30, down 95.9% from its $7.30 high set in August 2021, according to CoinGecko data. LDO’s $255 million market cap makes it the 141st largest token by value at the time of writing.

“That dislocation is not justified by a proportional deterioration in protocol performance,” Lido DAO said. 

Lido DAO proposes buying stETH in batches

Lido DAO proposed buying up to 10,000 stETH in smaller batches of 1,000 to buy LDO. 

Lido DAO said it would use limit orders or adopt a dollar-cost averaging strategy to avoid market volatility. 

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