Current indicators from Basescan point to a case of ‘rug-pull’ in a recently released meme-coin that has seen astronomical rise. This is because the distributor of the altcoin project has removed millions of dollars worth of liquidity in the last hours.
The altcoin, which has just entered the market, peaked and bottomed on the same day!
The highly anticipated launch of BALD tokens on Base Blockchain, which took place just over 24 hours ago, has undeniably caused a lot of excitement. As such, it has managed to attract substantial capital investment. However, newly minted BALD tokens saw a sharp drop of up to 90% from their high on Monday, July 31. Thus, the initial enthusiasm around the altcoin project was also short-lived. Moreover, this sharp drop was triggered by the token distributor pulling millions of dollars worth of liquidity from the market. The distributor caused the altcoin price to drop dramatically from 9 cents to 1 cent.
BALD daily price chart. Source: CoinMarketCapDespite this setback, a glimmer of hope has emerged for the beleaguered altcoin project. Prices have rebounded modestly, up to 5 cents at time of writing, driven by a select group of traders who took the opportunity to buy the dip.
A ‘rug-pull’ thing?
However, this drastic price action has sparked concerns among industry experts, who question whether this event could be classified as a “rug-pull,” a ploy in which liquidity is abruptly pulled back against token holders. In this context, Market expert Will Clemente shared the following:
Over the weekend, someone created a meme-coin named Bald on BASE (Coinbase’s ETH L2). Then, it reached a market cap of $85 million within 48 hours. Only the carpet was pulled and it fell 85% almost instantly.
Over the weekend someone created a memecoin called Bald on BASE (Coinbase’s ETH L2) that reached a $85mm mkt cap in 48 hours
Just got rug pulled and dropped 85% almost instantly pic.twitter.com/5cAs4aAbuZ
— Will Clemente (@WClementeIII) July 31, 2023
Surprising moves in BALD’s market value!
BALD briefly hit an impressive market cap of $50 million on Sunday. Thus, the meme coin has achieved significant popularity in market circles. Subsequently, the token’s market cap rose to a staggering $85 million later that day. In the process, clever traders made significant profits. While monitoring the current situation, Blockchain data indicates that the issuer of the token is providing liquidity support. In this context, the data shows that the distributor is gradually injecting smaller ETH batches. As a result, token prices have been on a steady rise. However, concerned holders continued to sell their tokens in bulk.
In summary, the launch of BALD tokens on the Base Blockchain has been an eventful journey so far, marked by both enthusiastic highs and alarming lows, as we reported on cryptokoin.com. The volatile nature of the cryptocurrency market is familiar to market players. Also, there are always potential risks associated with newly launched projects. Therefore, investors and traders need to consider them.
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