BALD, a new meme coin on Coinbase’s Base network, plummeted 85% following claims that its developer withdrew 1,034 Ether, valued at around $1.9 million, from the liquidity pool. This information is based on social media discussions and blockchain records. Additionally, the deployers today started making big moves as they bridged $13 million worth of Eth to Ethereum and deposited massive amounts of funds to exchanges, hinting at a potential selloff and exit scam.
BALD Deployers Send Funds To Kraken Exchange
According to Lookonchain, a blockchain analysis tool, the BALD deployers successfully bridged a staggering 7,000 ETH (equivalent to about $12.9 million) from the Base network to Ethereum. Subsequently, they deposited 2,100 ETH (around $3.87 million) into the well-known cryptocurrency exchange, Kraken. Furthermore, 2,000 ETH (also $3.87 million) sat in the bridge, with an additional 2,237 ETH (approximately $4.13 million) resting in the Base network.
According to data, the BALD meme coin saw a spectacular rise, holding a whopping $32 million in Ether (ETH) during the European morning hours. Deployed on the Base blockchain, the BALD token’s reputation skyrocketed as it boasted an unbelievable market capitalization of $50 million on Aug 1 and reached an eye-watering $85 million later the same day.
Traders who hopped onto the BALD train early reaped impressive profits, with one such trader netting over $1.4 million from a mere $500 investment. The numbers alone were dizzying, but as with all things that rise too fast, gravity soon took hold.
Merely days after its launch on July 29 by a pseudonymous developer known only as “Bald”, the coin, which had gained a staggering 289,000% within its first 14 hours of trading, began to show signs of cracking. Twitter became abuzz with claims and screenshots from users who noticed a suspicious movement. A whopping 1,034 ETH had been yanked out of the liquidity pool by the token’s deployer account. The result? The token’s value plummeted, crashing from 9 cents to 1 cent.
Traders watched in disbelief as their profits evaporated. And while there were a few who tried to buy the dip, bringing the price momentarily back up to 4 cents, the damage was done.
Suspect Scammer Milkyway Hides Tweets; Community Blames Sam Bankman
Crypto Twitter is rife with discussions as a new theory emerges, suggesting that FTX founder Sam Bankman-Fried might be involved with one of the most debated BALD meme coins.
Several blockchain enthusiasts provided the developer’s on-chain history, leading some to associate SBF with it. They observed that the Ethereum wallet that launched the Bald token had previously received thousands of ETH from wallets linked to FTX and Alameda Research.
An anonymous DeFi commentator named Downsin proposed a theory implying that the connection between the two suggests SBF is “genuinely attempting to recover everything sitting behind bars.” However, it is important to clarify that SBF is not in jail; he’s currently under house arrest at his parent’s residence in California, awaiting his trial in October.
On the other hand, crypto investigator ZachXBT recently shared insights that might shed light on the mysterious identity of the BALD Coin initiator. In a tweet, ZachXBT highlighted a 2021 transaction from the wallet address associated with the BALD coin’s deployment.
The beneficiary of this transaction was crypto enthusiast Mike McDonald. He alleges that he was awarded $50,000 from that wallet after winning a bet against Milkyway. Milkyway had earlier referenced BALD on several occasions, even confirming its authenticity and its non-upgradable nature.
ZachXBT delineates the connection among the BALD Coin initiator, Milkyway, and Mike as:
It is suggested that Milkyway could be the individual responsible for the BALD Coin controversy. Currently, Milkyway’s Twitter account has been set to private.
