Base Creator Coin's Dramatic Decline: Nick Shirley's $9M Token Plummets 67%

The swift rise and subsequent fall of Nick Shirley's creator token has reignited discussions about the viability of "creator coins" in maintaining sustainable on-chain activity, even when they are boosted by viral exposure and notable platforms.

Key Takeaways

Nick Shirley's creator token experienced a staggering 67% drop in value, moving from a $9 million valuation to approximately $3 million within hours.
The initial surge was driven by viral content but failed to convert into sustainable user growth, revealing structural issues within the creator coin ecosystem.
Industry experts warn that while decentralized monetization shows potential, user retention and genuine engagement remain challenges for platforms like Base and Zora.

This analysis showcases the volatile nature of creator coins and the ongoing challenges they face in achieving lasting success within the cryptocurrency landscape.

Launched on the Coinbase-backed Ethereum layer-2 network Base through the Zora creator platform, the token experienced a substantial drop of approximately 67% within hours, plummeting from a peak valuation close to $9 million to around $3 million by January 1, 2026.

Base Creator Coin's Dramatic Decline

Shirley’s Creator Token: A Hype-Driven Surge that Quickly Fizzled Out

The token, which trades under the ticker $THENICKSHIRLEY, debuted in late 2025 following a 42-minute investigative video released by Shirley that went viral on X, amassing hundreds of millions of views and attracting the attention of significant personalities.

The video focused on allegations of childcare fraud in Minnesota and thrust Shirley into a political and media whirlwind after the claims were amplified by notable figures including Elon Musk and members of the Trump administration.

These allegations eventually overlapped with broader discussions when federal authorities announced a freeze on childcare funding in Minnesota.

In this context, Shirley's creator token was marketed as a real-world trial of how decentralized content monetization could function.

The initial excitement was rapid, driving the token's fully diluted valuation to approximately $9 million, with Coinbase CEO Brian Armstrong publicly praising the launch as a shining example of on-chain creator monetization.

However, this enthusiasm dissipated swiftly. Within days, the token's value had slipped by more than 60%, with the majority of trading volume resulting from existing on-chain traders instead of new users joining Base or Zora.

Despite this decline, on-chain analytics indicated that Shirley received an estimated $41,600 to $65,000 in creator royalties linked to trading activity.

Critics argue that this situation underscores a structural issue, where creators and early traders reap the benefits of short-term speculation while broader adoption remains elusive.

Several traders viewed this incident as a lost chance for Base and Zora to leverage viral attention into lasting user growth.

One of the most frequently shared criticisms came from a trader and content creator known as notthreadguy. He expressed in a video that Shirley's launch was the most robust test case for creator coins yet still failed to demonstrate sustained demand.

He highlighted the lack of continued support from platforms and the absence of meaningful onboarding of new users, pointing out that profits and losses largely remained confined to speculative traders already active on-chain.

Additionally, Coinbase CEO Brian Armstrong shared that he had a discussion with notthreadguy regarding these issues.

The Creator Coin Backlash as Base Expands Into SocialFi

This backlash was compounded by broader frustrations regarding creator-focused initiatives on Base.

Other tokens linked to Zora have exhibited similar trends, characterized by sudden price surges followed by rapid declines and low liquidity.

In addition, a separate meme coin based on Solana, $LEARING, created by third parties to exploit a spelling error in Shirley’s video, momentarily reached a market cap exceeding $3.3 million before also declining.

This incident unfolds as Base positions itself as a central hub for decentralized social applications, building on earlier initiatives like Friend.tech and newer platforms such as Farcaster and Zora.

Experts predict that the SocialFi sector could potentially surpass $10 billion by 2033, yet user retention has remained inconsistent.

Friend.tech Decline

For instance, Friend.tech, often highlighted as an initial success, saw its daily active users peak around 80,000 but subsequently drop below 10,000.