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Steve Muchoki
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Cryptocurrency traders flocked into a memecoin based on Coinbase-backed Ethereum layer two (L2) scaling solution, Base network, dubbed BALD token in the past few days in the hope of catching some uptrend profits. However, BALD traders were surprised with a rug pull card after the deployer removed the majority of Ether liquidity, causing the price to suddenly plunge.
According to the latest crypto market data provided by CoinGecko, BALD’s price traded around $0.00616 during the early Asian market session on Tuesday. Having dropped nearly 90 percent, almost all the gains made in the past few days have been obliterated, leaving most of the BALD buyers stranded in losses and slim chances of market exit.
The $BALD deployer has removed all liquidity of BALD/ETH.
He bridged 9,385 $ETH to #Base, and now he holds 12,433 $ETH, earning 3,048 $ETH ($5.7M) in 2 days.https://t.co/MghRrP9jw5 pic.twitter.com/UgFi71mY5D
— Lookonchain (@lookonchain) July 31, 2023
Moreover, market data provided by dexscreener showed that the BALD token had liquidity of about $40k via WETH on LeetSwap DEX. Worth noting that the BALD token had a market capitalization and fully diluted valuation of about $6.2 million after the deployer began adding liquidity in small bits in the past few hours. As a result, BALD’s price had recovered about 30 percent in the past 6 hours, with its daily average traded volume at about $63 million.
BALD Token and Base Network
The BALD meme coin was created three days ago and has received a fair share of bullish buyers and extreme disapproval. With a total supply of 1 billion, the BALD token had about 8,144 holders who facilitated approximately 159,820 transfers since its creation. The BALD token deployer held the majority of the circulating supply amounting to about 56 percent, thus raising fears of a possible dump as more buyers add liquidity in the future.
The Base network is directly accessible to the MetaMask crypto wallet, hence exposing millions of investors to extremely risky assets.
Interestingly, on-chain analysts have related the BALD project with former FTX boss Sam Bankman-Fried, who currently awaits October’s trial. Additionally, Bald deployer linked through Binance to UST depegger that helped collapse Terra $LUNA. Notably, there have been reports of SBF using VPN to conduct communications that are not approved by the court through his bail.
https://twitter.com/hype_eth/status/1686126115947941890?s=46&t=91bkpIqq8uRytq9YG8cgrQ
Notably, the BALD deployer held about 12,433 Ethers worth approximately $22 million at current prices of around $1,824. The Coinbase-backed project has been condemned for not putting in place measures to protect investors from malicious developers. Furthermore, blockchain security experts at PeckShieldAlert highlighted that liquidity providers (LP) on the Base network had been exploited for approximately 340 ETH worth about $630K.
In the BALD deployer’s defense through a tweet, no liquidity was lost as the removed ether will be returned.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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