BALD Coin: From $100 Million to Worthless Overnight

BALD Coin: From $100 Million to Worthless Overnight

The Rise and Fall of BALD: A Tale of Market Manipulation in the Blockchain Industry

On July 30, a meme coin named BaldBaseBald (BALD) launched on Base Network, Coinbase’s new Layer 2 built on Optimism. This coin was amusingly named after Brian Armstrong, Coinbase’s “bald” founder, and quickly garnered attention from speculators in the blockchain industry. Within just two days, the token’s market cap soared to $100 million, with over $25 million in liquidity. However, this meteoric rise turned out to be a classic case of market manipulation, as the creators behind the token, BaldBaseBald, rug pulled the token, causing its price to plummet by 85%.

Malicious Market Behavior Behind BALD

Thiccy, a market researcher, carefully analyzed all the transactions originating from the Bald deployer and uncovered a story of malicious market behavior. In the first 24 hours, BaldBaseBald added an astonishing amount of capital, over 6,700 ETH (equivalent to over $12.5 million), to the liquidity pool. Such a significant infusion of liquidity within a short period is unusual for a meme coin on a new chain.

Undoubtedly, these actions by the deployer intrigued and excited speculators, who speculated that Brian Armstrong himself had created the coin to generate hype. However, as soon as the deployer ceased adding liquidity to the pool, the price of the token stagnated and eventually broke down. Thiccy’s analysis revealed a market pattern: after 24 hours, the deployer began bidding on BALD again, causing the price to double. Shortly after, the deployer withdrew over 10,500 Ethereum (ETH), approximately $20 million in liquidity. This withdrawal triggered an 85% drop in the token’s value.

Thiccy’s meticulous analysis illustrated that the deployer had made a net profit of 2,789 ETH (equivalent to $5.2 million) after adding 6,870 ETH, spending 1,360 ETH at an average price of 0.0004, and finally withdrawing 10,704 ETH. The actor behind the manipulative market behavior was surprisingly well-capitalized and boldly executed their actions in the midst of public scrutiny on Coinbase’s compliance chain.

As the story of BALD came to an end, Thiccy emphasized the importance of learning from this experience in the blockchain industry. Market manipulation and unethical shills are prevalent, making it crucial for investors to exercise caution and skepticism. Thiccy’s concluding statement serves as a stark warning: “Play stupid games, win stupid prizes.” Surviving and thriving in this industry requires careful trust assessment and avoiding excessive risk-taking driven by Fear of Missing Out (FOMO).

Following the manipulative market tactics, BaldBaseBald removed the remaining liquidity, resulting in a total Profit and Loss (PnL) for the deployer of 3,163 ETH, equivalent to $5.9 million. This incident serves as a stark reminder of the challenges faced by investors in the blockchain industry.

BALD’s market behavior within 24 hours. Source: Thiccy

The case of BALD sheds light on the need for regulatory measures and improved diligence within the blockchain industry. Market manipulation remains a serious concern that can significantly impact investor trust and the stability of cryptocurrencies. As blockchain technology continues to evolve and safeguard against market manipulation, investors should remain cautious and thoroughly evaluate investment opportunities.

Total crypto market capitalization continues consolidating between the $1.13 and $1.14 trillion zones. Source: TOTAL on TradingView.com

In conclusion, the rise and fall of BALD exemplifies the potential risks associated with market manipulation in the blockchain industry. It serves as a cautionary tale for both new and experienced investors. As this nascent industry matures, regulators, market participants, and investors must collaborate to create a robust and transparent ecosystem that protects against fraudulent activities. By learning from incidents like BALD, the blockchain industry can build trust, promote innovation, and ensure the long-term sustainability of this transformative technology.

Featured image from iStock, chart from TradingView.com

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

News

Coinbase Diversifies Ethereum Execution Client to Address User Concerns and Improve Platform Security

Coinbase, a leading digital asset exchange, has announced its commitment to diversifying its implementation of Ethere...

BlockChain

ETH rally loses steam, may revisit resistance-turned-support.

Ethereum price soared beyond the significant $1,700 barrier in its upward movement against the US Dollar. Although en...

Market

Ethereum Price Rockets Up – Brace Yourselves for $2,000 ETH!

Ethereum Price Prediction ETH Surges 8%, $2,000 ETH on the Horizon? Hey there, fellow digital asset investors! Hold o...

News

Ethereum liquid staking protocols reach new milestone with significant inflows

Excitingly, on-chain reports have recently unveiled an impressive achievement in the number of Ethereum (ETH) staked ...

Bitcoin

GALA's 2023 plunge of 72% attributed to internal conflicts and legal disputes.

GALA prices experience a temporary downturn, with a 72% decrease from their peak in 2023. This temporary setback occu...

BlockChain

Vitalik Buterin only stakes a 'small portion' of his ETH.

Vitalik Buterin mentioned in an episode of the Bankless podcast, released on June 29, that he only stakes a small por...