Collectors claimed that the BALD memecoin was the victim of an exit fraud, but the developer insists that no coins were traded.
According to social media claims and blockchain statistics, a new memecoin on Coinbase's Base network collapsed 85% after its developer allegedly removed 1,034 Ether in liquidity, which is equal to roughly $1.9 million, from the market. Developer of the Bald (BALD) coin denied making any market sales, saying, "[I] just added/removed 2 sided liquidity and bought."
On July 13, the Base network by Coinbase was made available to developers. However, because the network's bridge lacks a functional user interface (UI), its development team has advised against using it by regular users. A bridge UI will be made accessible in August, when the network will be formally released to consumers.
In spite of these cautions, some investors have sought an early profit by acquiring assets on the network before it becomes live. They accomplished this by bridging Ethereum ETH utilizing development tools.
without a UI, from Base to Ethereum.
A developer going by the handle "Bald" on Twitter announced the release of the BALD token on Base at address 0x27D2DECb4bFC9C76F0309b8E88dec3a601Fe25a8 on July 29.
Within the first 14 hours of trade, the token increased by 289,000%. However, on July 31, Twitter users started to complain that the deployer account had deleted 1,034 ETH in liquidity, which led to the token's price dropping to almost nothing.
The developer of BALD denied selling tokens through a market order in a message on social media, writing, "I didn't sell a single token at any point since deployment. Simply added or removed two-sided liquidity and purchased. One coin collector responded by claiming that increasing two-sided liquidity is the same as selling tokens, to which the BALD creator said, "correct."
Related: Crypto degens release 50 meme coins with an alien vibe.
According to blockchain information, the account 0xccfa0530b9d52f970d1a2daea670ce58e4176389 that pulled 1,009.41 Wrapped Ether (WETH) from the market at 12:13 PM UTC on July 31 deployed the BALD token.
Investors recently suffered large losses as a result of unsuccessful memecoin launches. Following the introduction of Pond0x on July 26, more than $2 million was reportedly lost because it purportedly had a transfer function bug that allowed any user to transfer another user's tokens without their permission.