The recent launch of BALD tokens on the Base blockchain, which took place just a day ago, has undoubtedly created a buzz and drawn significant investment.
The excitement surrounding the launch of BALD tokens was short-lived, as their value plummeted by up to 90% from their peak on Monday, July 31st. This sharp drop was caused by the token’s deployer, who allegedly withdrew millions of dollars in liquidity from the market, causing the price to fall from 9 cents to just 1 cent.
BALD Token Faced Issues Since Launch
Despite the sharp drop in value, there was a small ray of hope for the struggling BALD token, as its price rebounded slightly to 4 cents at the time of writing. This was due to a group of traders who took advantage of the dip to buy in.
However, this dramatic price fluctuation has raised red flags among industry experts, who are now wondering if this could be considered a rug pull, where liquidity is suddenly removed to the detriment of token holders.
Over the weekend someone created a memecoin called Bald on BASE (Coinbase’s ETH L2) that reached a $85mm mkt cap in 48 hours
Just got rug pulled and dropped 85% almost instantly pic.twitter.com/5cAs4aAbuZ
— Will Clemente (@WClementeIII) July 31, 2023
It’s worth noting that BALD tokens had a brief moment of success on Sunday, reaching a market capitalization of $50 million and gaining popularity among traders. Later that day, the token’s market cap even rose to an impressive $85 million, leading to significant gains for savvy traders.
As the situation unfolds, blockchain data shows that the token’s deployer has been adding small amounts of ether to provide liquidity support. As a result, the token’s price has been steadily increasing. However, nervous holders are still selling off their tokens en masse.
The launch of BALD tokens on the Base blockchain has been a rollercoaster ride, with both exciting highs and worrying lows. Traders and investors should be cautious and stay alert, due to the unpredictable nature of the cryptocurrency market and the potential risks that come with new projects.