Social media buzzes with claims that BALD developers executed a rug pull.
Controversy swirls around the recent 85% price fall of the newly launched memecoin, Bald (BALD), listed on Coinbase's Base network. The drastic dip coincided with the developer allegedly withdrawing 1,034 Ether (ETH) from the market, valued at approximately $1.9 million.
Although reports and blockchain data suggest this activity, the developer denied any coin market sales, expressing that they had "<...> just added/removed 2-sided liquidity and bought."
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"Bald," the pseudonymous developer, announced the introduction of the BALD token on the Base network at address 0x27D2DECb4bFC9C76F0309b8E88dec3a601Fe25a8 on July 29th.
The token's value soared by 289,000% within 14 trading hours. However, by July 31st, social media was abuzz with reports alleging the token's deploying account had extracted 1,034 ETH in liquidity, thus causing its price to tumble.
On July 13th, Coinbase launched the Base network, a platform dedicated to developers. However, the Base network development team has consistently advised ordinary users against using the network, primarily due to the lack of a functioning user interface (UI) for its bridge. The Base team plan to officially open the network to users in August.
Despite these cautions, several investors took it upon themselves to secure early gains by procuring assets on the network ahead of its scheduled release. They accomplished this by using developer tools to migrate Ether (ETH) from Ethereum to Base, sidestepping the need for a UI.
The roller-coaster ride of memecoin valuations and the instability of emerging networks pose substantial risks to investors. The significant downturn in BALD token price underscores the imperative for investors to proceed with caution, undertaking thorough research before diving headfirst into these volatile waters.
