On July 30th, a meme coin named BaldBaseBald (BALD) was launched on Base Network, which is Coinbase's new Layer 2 built on Optimism. The coin was a reference to Brian Armstrong, Coinbase's founder who is bald, and quickly gained attention from speculators on the frontier chain. Within two days, the token's market capitalization had reached $100 million, with over $25 million in liquidity. However, the token's rapid rise turned out to be a classic case of market manipulation, as the deployer behind the token, BaldBaseBald, rug pulled the token and caused its price to plummet by 85%.
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"BALD Coin Rug Pull: $100M Memecoin Worthless Overnight" Malicious Market Behavior Behind BALD?
Thiccy, a market researcher, analyzed the transactions made by the Bald deployer and discovered a concerning pattern of unethical market behavior. In the first 24 hours, BaldBaseBald added an unexpected amount of liquidity to the pool, with over 6,700 ETH or $12.5 million worth of capital invested in a meme coin on a new chain. "BALD Coin Rug Pull: $100M Memecoin Worthless Overnight"
While the deployer's actions were beneficial for speculators, there were speculations that Brian Armstrong created the coin to generate hype. However, once the deployer ceased adding liquidity to the pool, the price stagnated and eventually declined.
24 hours later, the deployer started bidding on BALD again, causing the price to double. Then, the deployer withdrew over 10.500 Ethereum (ETH), or almost $20 million worth of liquidity, leading to an 85% drop in the token’s value.
Thiccy’s analysis showed that the deployer had made a net profit of 2,789 ETH, or 5.2 million dollars, after adding 6,870 ETH, spending 1,360 ETH buying at an average price of 0.0004, and withdrawing 10,704 ETH.
It was surprising how well-capitalized the actor was and how bold they were in carrying out this apparent manipulative market behavior in the middle of the public light on Coinbase’s compliance chain. Thiccy Concluded:
And with that, the story of BALD has come to a close play stupid games, win stupid prizes. Hopefully we can learn from this as a space this market is rife with market manipulation and unethical shills. Be careful who you trust.
Thiccy advises investors to control their Fear of Missing Out (FOMO) and not risk more than they can afford to lose, as survival is too important in this game.
As for BaldBaseBald has removed the rest of the liquidity, bringing their total Profit and Loss (PnL) to 3,163 ETH, or $5.9 million.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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