Coinbase appears to have fallen short of expectations after strengthening SocialFi functions in its Base app last year.

The Block reported on March 3 that Coinbase CEO Brian Armstrong (브라이언 암스트롱) said on a recent podcast, "The SocialFi experiment was not successful," adding, "We are currently focusing on trading functions."

The Base app is an upgraded version of the existing Coinbase Wallet. It was planned as an "all-in-one app" combining on-chain social media, messaging and gaming functions. In particular, its creator coin function supports users in tokenising social media posts and buying them.

User response was lukewarm, contrary to expectations. Coinbase has scaled back SocialFi functions since January this year and shifted to a trading-centric user experience. In February, it also removed a social feed using decentralised social media platform Farcaster. Armstrong said, "The experiment proceeded in a state where the token economy was not completed," adding, "SocialFi needs a durable token model."

Base app creator coins drew attention at one point, but most tokens saw their value fall. For example, the $thenickshirley token launched by reporter Nick Shirley (닉 셜리), who reported on a Minnesota daycare fraud case, grew to 15 million dollars at one point but later plunged.

Coinbase is upgrading the Base protocol, adding custom elements, and is also considering launching its own token. Armstrong said, "SocialFi was controversial, but the experiment itself was meaningful," adding, "Coinbase will continue innovation through an internal venture capital model."