In a surprising turn of events, a new memecoin named BALD, launched on Coinbase’s Base network, experienced a drastic 85% drop in value. This sharp decline was supposedly caused by the developer, who allegedly withdrew 1,034 Ether (ETH) from the market, which amounted to approximately $1.9 million. Reports from social media and blockchain data shed light on these concerning developments. However, the developer in question has vehemently denied participating in any market sales of the coin, stating that they only adjusted the liquidity and made purchases.
Coinbase’s Base network was introduced on July 13, specifically targeting builders. Nevertheless, the network’s development team has emphasized that ordinary users should refrain from engaging with it due to the lack of a functioning user interface (UI) for its bridge. The team intends to release the network to users in August, alongside the introduction of a bridge UI. Despite these warnings, some investors have chosen to seize potential early returns by investing in assets on the network before its official launch. This has been made possible through the utilization of development tools to bridge Ether (ETH) from Ethereum to Base without the need for a UI.
On July 29, an individual using the pseudonym “Bald” announced the launch of BALD on Base at a specific address. Astonishingly, within the first 14 hours of trading, the token experienced a mind-boggling surge of 289,000%. However, the tides quickly turned. On July 31, Twitter users began reporting that the deployer account of the BALD token had removed 1,034 ETH in liquidity, causing its price to plummet almost down to zero.
The developer of BALD denied any allegations of selling tokens through a market order, asserting that they merely adjusted the liquidity and made purchases. However, their statement led one observant coin collector to argue that adding two-sided liquidity essentially translates to selling tokens. Surprisingly, the developer agreed, acknowledging the action as a form of selling.
The Unveiling of Blockchain Data
Blockchain data analysis revealed that the BALD token was deployed by an account with the address 0xccfa0530b9d52f970d1a2daea670ce58e4176389. This account, at 12:13 pm UTC on July 31, removed 1,009.41 Wrapped Ether (WETH) in liquidity. This move played a significant role in profounding the downfall of the token’s value.
Learning from Memecoin Mishaps
The recent wave of failed memecoin launches has resulted in substantial losses for investors. One such incident occurred on July 26, when Pond0x was launched and purportedly contained a flawed transfer function. This flaw enabled any user to transfer another user’s tokens without obtaining consent. These incidents serve as stark reminders of the risks associated with investing in memecoins and highlight the critical need for cautious deliberation and thorough research before engaging in such speculative investments.
The launch and subsequent decline of BALD illustrate the volatility and uncertainties surrounding memecoins. While developments on Coinbase’s Base network hold promise for future opportunities, investors must exercise prudence and skepticism when navigating the treacherous terrain of meme cryptocurrency investments.