The cryptocurrency market is known for its volatile nature, and once again, investors have been hit hard by the sudden crash of a memecoin called BALD. This new coin, launched on Coinbase’s Base network, garnered a lot of attention with its astronomical rise in value. However, it all came crashing down when the developer allegedly pulled a significant amount of liquidity from the market.
According to social media reports and blockchain data, the developer of BALD withdrew 1,034 Ether (ETH) in liquidity, equivalent to approximately $1.9 million. This sudden move caused the value of the memecoin to plummet by 85%. The developer, however, denies making any market sales and claims to have only adjusted liquidity and made purchases.
Coinbase’s Base network, designed for builders, was launched on July 13. Despite its release, the development team has warned ordinary users against utilizing the network due to its lack of a functioning user interface (UI) for its bridge. The team plans to make the network available to users in August, along with the introduction of a bridge UI.
Despite these warnings, some investors couldn’t resist the temptation of early returns and decided to buy assets on the network even before its official launch. Using development tools, these investors bridged Ether (ETH) from Ethereum to Base without a UI, taking advantage of the situation.
On July 29, a pseudonymous developer going by the Twitter handle “Bald” announced the launch of the BALD token on Base. Within just 14 hours of trading, the token skyrocketed by a remarkable 289,000%. This surge in value attracted a lot of attention from investors.
However, on July 31, reports began emerging on Twitter that the developer had withdrawn 1,034 ETH in liquidity, causing the price of BALD to plummet close to zero. When confronted, the developer denied selling tokens through a market order and claimed to have only adjusted liquidity and made purchases. This sparked a debate among coin collectors, with some arguing that adjusting liquidity itself amounts to selling tokens.
The loss experienced by investors in BALD is not an isolated incident. In recent times, failed memecoin launches have resulted in significant financial losses for individuals. One notable example is the launch of Pond0x, where investors lost over $2 million due to a faulty transfer function that allowed unauthorized token transfers.
The cryptocurrency market remains a high-risk space prone to sudden volatility and potential scams. It is crucial for investors to exercise caution, thoroughly research projects, and be aware of the risks associated with investing in memecoins or any other speculative assets. The rise and fall of BALD serve as a reminder that even seemingly promising ventures can quickly turn into disastrous outcomes.