{"id":20507,"date":"2023-08-01T04:40:57","date_gmt":"2023-08-01T04:40:57","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/nft\/new-bald-memecoin-drops-92-in-apparent-rug-pull\/"},"modified":"2023-08-01T04:40:59","modified_gmt":"2023-08-01T04:40:59","slug":"new-bald-memecoin-drops-92-in-apparent-rug-pull","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/nft\/new-bald-memecoin-drops-92-in-apparent-rug-pull\/","title":{"rendered":"New “BALD” Memecoin Drops 92% in Apparent Rug Pull"},"content":{"rendered":"
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Just a day after its introduction on crypto exchange giant Coinbase and its recently launched Base network, a new memecoin has already been labeled and considered a \u201crug pull\u201d after the token\u2019s deployer removed $25.6 million dollars in liquidity from the network.\u00a0<\/p>\n

BALD, which dropped yesterday, pokes fun at Coinbase CEO Brian Armstrong\u2019s lack of hair. And since yesterday\u2019s deployment, which garnered a 3,000% increase in BALD\u2019s overall value, the coin has already plunged by 92%, according to data from CoinGecko.<\/p>\n

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Over the weekend someone created a memecoin called Bald on BASE (Coinbase\u2019s ETH L2) that reached a $85mm mkt cap in 48 hours<\/p>\n

Just got rug pulled and dropped 85% almost instantly pic.twitter.com\/5cAs4aAbuZ<\/a><\/p>\n

\u2014 Will Clemente (@WClementeIII) July 31, 2023<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

The Onchain Intrigue Telegram Channel, which monitors such activities, traced the wallet associated with the BALD token, revealing that the wallet went back onto the decentralized exchange LeetSwap to purchase more BALD tokens, while simultaneously sending a very strange tweet that appears to be guiding users to buy more of the token \u2013 before removing all the liquidity again.\u00a0<\/p>\n

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Seems like the BASE chain can handle heavy load quite well<\/p>\n

\u2014 Bald (@BaldBaseBald) July 31, 2023<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n

Following a number of allegations that the memecoin was a scam, that same account (@BaldBaseBald<\/a>) denied any allegations of having sold the tokens, instead, claiming to have \u201cadded\/removed 2 sided liquidity and bought.\u201d However, another user contradicted this statement, who highlighted that the token had indeed been sold.<\/p>\n

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Cool story bro but as you know, when you add 2 sided liquidity and price goes up, the AMM is selling tokens in exchange for ETH in the pool.<\/p>\n

So yes, you did in fact sell a lot of tokens and now have a lot more ETH.<\/p>\n

Not judging you, just making it crystal clear.<\/p>\n

\u2014 StealthElectronVIP (@StealthElectron) July 31, 2023<\/a><\/p><\/blockquote>\n

In a recent interview with Decrypt, <\/em>Matt Aaron, the project lead at Cielo, which oversees Onchain Intrigue, described this situation as \u201cpuzzling\u201d because the wallet moving the funds was considered to be a \u201csophisticated whale\u201d that holds large amounts of Coinbase\u2019s Ethereum liquid staking token cbETH, which can be bought, sold, and swapped for other digital assets.\u00a0<\/p>\n

Aaron also added that this same wallet \u201callegedly\u2026KYC\u2019s their wallet on a centralized exchange.\u201d\u00a0<\/p>\n

Crypto Twitter commentators have been closely following the unfolding events, with some even speculating that former FTX CEO Sam Bankman Fried or another highly-situated former FTX or Alameda executive could be the developer behind the ill-fated memecoin. Observers pointed to FTX and Alameda deposits in the developer\u2019s wallet\u2019s transaction history over the span of more than two years.<\/p>\n

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To Summarize:<\/p>\n

\u2013 Thousands of ETH between FTX and Bald
\u2013 Bald deployer was first voter on all sushi proposals
\u2013 Bald deployer tweets same sentence structure as SBF
\u2013 Bald deployer was biggest DYDX farmer
\u2013 Bald deployer DYDX posts sound like SBF<\/p>\n

(1\/x) \ud83d\udc47<\/p>\n

\u2014 hype (@hype_eth) July 31, 2023<\/a><\/p><\/blockquote>\n

However crypto journalist Tiffany Fong was quick to shoot down the SBF speculation, citing the limited phone, laptop, and Twitter access in his current bail conditions.<\/p>\n

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Guys, SBF hasn’t had access to a normal phone or laptop since April 2023 when his bail conditions changed. He’s basically been using a flip phone without internet connection & a laptop with restricted access to whitelisted websites (e.g. NYT, WSJ, Courtlistener, etc). <\/p>\n

Note: He\u2026<\/p>\n

\u2014 Tiffany Fong (@TiffanyFong_) July 31, 2023<\/a><\/p><\/blockquote>\n

Who do we blame?<\/h2>\n

A \u201crug pull\u201d in the crypto world refers to a deceptive strategy where developers introduce a new token, create an illusion of its legitimacy, and then abruptly withdraw the liquidity, leaving investors in the lurch.<\/p>\n

The incident with the BALD token underscores the challenges and vulnerabilities inherent in an evolving crypto landscape with no legitimate regulatory framework to govern misuse and abuse cases to the detriment of investors. <\/p>\n

Unfortunately, the risks we have continued to see within DeFi add a stronger onus on regulators and platforms to implement robust security measures to help safeguard these types of scams. But, can a \u201crug pull\u201d actually be prevented at this current stage of where we are at?\u00a0<\/p>\n

Doubtful.<\/p>\n

Coinbase, which is considered to be one of the world\u2019s largest cryptocurrency exchanges, will likely face increased scrutiny in the wake of this incident. How the company responds and the measures it adopts will be closely watched, not just by its user base, but by the broader crypto community.<\/p>\n

Editor\u2019s note: This article was written by an nft now staff member in collaboration with OpenAI\u2019s GPT-4.<\/em><\/p>\n<\/p><\/div>\n