Why did BALD memecoin crash? Crypto community hints that BALD memecoin crashed following rumors and influence, and the impactful rug pull event.

Key Points

The BALD meme coin launched unexpectedly on Basechain, a blockchain network created by Coinbase, and quickly surged in value.

Fueled by rumors associating the token with Brian Armstrong, Coinbase's CEO, and significant purchases by a notable Twitter influencer, BALD's value increased dramatically.

However, the subsequent abrupt rug pull event, initiated by the withdrawal of substantial liquidity, drastically reduced the value of BALD, causing investors to lose funds.

Meme coins often tell the most dramatic stories. The BALD memecoin is no exception, from its unexpected launch on the Basechain platform to its staggering price pump, and the devastating rug pull that followed.

What Is BALD?

BALD is a meme coin that recently appeared on Basechain, a blockchain network created by Coinbase. Basechain, an Ethereum Layer-2 network based on Optimism, was launched by Coinbase to provide users with an easy-to-use default on-chain experience and accessibility to products on other chains.

Timeline of events

The BALD token made its unannounced debut on the decentralized exchange Uniswap, quickly amassing a market capitalization in the tens of millions. In a single day, the coin's value surged by a staggering 30,000 times, thrusting it into the spotlight among meme coin enthusiasts.

BALD Pumps 10,000% 

In its initial 24 hours, the meme coin recorded a mind-boggling 30,000x price increase, a surge that put it on the radar of meme coin enthusiasts and investors. At its peak, the coin's price approached $0.085. This massive price pump rapidly expanded BALD's market capitalization, pushing it into the tens of millions and peaking at approximately $85 million. This immense growth was noteworthy considering BALD’s mysterious arrival on the market and its initial obscurity.

A combination of factors contributed to the frenzied buying, one of which was the coin's unexpected deployment on Uniswap by a whale holding a large supply of cbETH, the Coinbase variant of staked ETH. This fact, along with the Basechain's association with Coinbase, led to widespread speculation that BALD was created by someone associated with the company. Unfounded rumors further linked BALD to Coinbase CEO, Brian Armstrong. The market was abuzz with these speculations, driving a buying frenzy that significantly contributed to BALD's massive pump. Even though these rumors were unverified, the mere association with a well-known figure like Armstrong attracted a significant influx of investors to the coin.

Is BALD Memecoin wrongly associated with Brian Armstrong?

The intrigue surrounding the BALD memecoin was further exacerbated by rumors that began to circulate associating the token with a prominent figure in the crypto industry, Brian Armstrong.

Brian Armstrong is the CEO of Coinbase, one of the largest cryptocurrency exchanges. The rumors linking him with BALD arose due to the token's debut on Basechain, a blockchain network launched by Coinbase. The coin's significant initial supply, attributed to a whale with a large supply of cbETH (Coinbase's variant of staked Ethereum), added fuel to these speculations. Although Armstrong had no known direct links with the token, the rumors thrived in the absence of solid information about the coin's origin, driving much speculation among investors and the larger crypto community.

Influence of These Rumors on the Token’s Popularity and Price

In the volatile and speculative world of crypto, rumors can often drive significant market movements. In the case of BALD, the rumors associating the memecoin with Brian Armstrong had a significant impact on its popularity and price. The mere speculation of Armstrong's involvement, irrespective of its validity, ignited a trading frenzy. This led to a rapid increase in the coin's value, with its price multiplying by a staggering 30,000 times within just 24 hours. This demonstrates the substantial influence such rumors can have on a coin's trajectory, contributing to its brief but explosive rise to prominence.

Influencer calls

Twitter influencer @notEezzy, reported the movements of the BALD deployer. In a tweet, @notEezzy alerted the crypto community that the BALD deployer had pulled out the remaining 370 ETH of its liquidity in a 'hard rug' event. This move erased approximately 80 million in market capitalization in under an hour.

Another account, @WhaleChart, shared a dramatic anecdote from a distressed BALD investor, providing a stark insight into the emotional toll these rapid market movements can have on individual investors. While this account may not directly influence market movements, it amplifies the sentiment of panic and desperation, potentially further pushing investors to sell off their BALD holdings, contributing to the ongoing drop in price.

BALD Rug Pull Becomes a Reality

Crypto has seen its fair share of highs and lows. One such unexpected turn was the abrupt rugpull of the BALD token, leaving a significant impact on its price and liquidity.

The BALD Rug Pull

BALD/WETH Candlestick Chart

The rug pull event of BALD token unfolded when the developer, known on Twitter as @BaldBaseBald, abruptly withdrew a considerable amount of liquidity from LeetSwap, a popular decentralized exchange platform. The most significant transaction included the withdrawal of 7,000 Ether (ETH) and 142 million BALD tokens, amounting to an enormous value of $13 million.

This massive liquidity pullout led to a swift and drastic drop in BALD's price, causing a sharp plunge. This sudden turn of events is typical of a rug pull, a practice where the developers of a cryptocurrency abruptly leave the project and sell off their tokens, often leading to a dramatic price drop.

Bottom Line: BALD Rug pull

The BALD memecoin from its unexpected launch to its rapid rise and eventual rug pull offers a cautionary tale for potential investors. Navigating the crypto industry demands a keen eye to discern reality from illusion, particularly when exploring nascent and unproven tokens. The fate of BALD serves as a poignant testament to the unpredictability and hazards inherent in memecoin investments. As always, one should approach such investments with due diligence and caution.

#BALD #Rugpull

How to detect a rug pull

There are several ways to detect a rug pull. Some of which will be mentioned here.

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Four ways to Detect #rugpull

▪When developers are making money

▪The project arose out of nowhere

▪Developers that choose to remain anonymous

▪Liquidity issues

◾️When developers are making money

Although this may not seem to be a fraud in a free market, it qualifies as such if the initiative was developed solely for this goal.

malevolent developer, as in the previous two frauds, builds a project with an exaggerated value proposition.

The project arose out of nowhere 👀

◾️Rug pulls seem to appear out of nowhere, while legitimate cryptocurrencies and DeFi initiatives take years to build.

These phony enterprises are often backed by a lot of hype, leveraging on currently prevalent cultural memes.

Developers that choose to remain anonymous

When the dev refuse to show his / her self

The project meant be #Rugpull

Founder meant be scared not to get catch 🤦🏽‍♂️

And fake his identity

they may have excellent legal reasons for doing so, and you should probably avoid that coin.

Liquidity issue

You can’t check the liquidity of DeFi projects, but you can always do it with a cryptocurrency. Low liquidity suggests that converting the token to cash is difficult, which might be due to the creator having a limited amount of funding to manufacture the token

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