Viral Token BALD Reaches $80 Million, Plunges 90%: Mysterious Developer’s Moves Raise Questions

Viral Token BALD Reaches $80 Million, Plunges 90%: Mysterious Developer’s Moves Raise Questions

Crypto News – In a dramatic turn of events, the highly viral token known as BALD achieved a staggering market capitalization of $80 million earlier this month, only to experience a precipitous 90% decline shortly afterward.

Behind this intriguing digital asset stands an enigmatic developer who recently made headlines by transferring a substantial sum of $12 million in ether (ETH) back to the Ethereum network on a Sunday. This transfer took place following a period of significant volatility during which BALD’s value skyrocketed before undergoing a sharp correction.

Analytics firm Lookonchain provided insights into the developer’s actions, revealing that approximately 7,000 ether (equivalent to $12.9 million) was bridged from the Base network to Ethereum on that eventful Sunday. Bridging, in this context, refers to the movement of tokens between different blockchains.

Notably, the developer then proceeded to deposit 2,100 ether, currently valued at $3.87 million, onto the crypto exchange Kraken. This transaction marked a significant shift as it represented the first instance of more funds being moved out of the Base network compared to funds being bridged in. This observation was confirmed through a Dune Analytics query.

The meteoric rise of BALD occurred in early August, when Base, a blockchain associated with the Coinbase crypto exchange, had yet to be officially accessible to the public. A viral post showcasing a trader’s impressive gains, turning a mere $500 into a substantial sum, contributed to BALD’s explosive surge of 4,000,000% within a matter of days. This surge attracted a staggering influx of over $66 million in ether to the ecosystem, as traders sought to capitalize on returns in an otherwise stagnant market.

BALD’s ascent appeared to have all the elements of success: abundant liquidity, a burgeoning community, an influx of new traders, and the allure of potentially becoming the next “Shiba Inu” (SHIB) phenomenon. However, this optimism was short-lived. BALD’s value plummeted by as much as 90% after the developer behind the token withdrew millions of dollars’ worth of liquidity. This sudden shift in sentiment prompted a rush of traders exiting their positions amid heightened uncertainty.

Prior to the price drop, the developer had injected up to $35 million worth of ether into a liquidity pool on Leetswap, an exchange built on the Base network. This move created the illusion of a well-capitalized project. Additionally, the developer potentially generated substantial profits from supplying ether against BALD tokens and capitalizing on price increases.

Remarkably unfazed by the price turbulence, the developer issued a tweet asserting their ownership of the tokens held by the deployer address, including liquidity tokens. They emphasized their authority to use these tokens as they saw fit and cautioned potential traders about the speculative nature of the token, highlighting its lack of a roadmap and fundamental value.

Despite the best efforts of sleuths, the identity of the wealthy deployer remains shrouded in mystery. Some have even speculated about connections between BALD and Alameda Research, a firm associated with Sam Bankman-Fried, based on wallet activity and links to Alameda projects.

As of Monday, the enigma surrounding the BALD developer persists, leaving the crypto community with questions and speculation about the future of this intriguing and volatile token.