- BALD token, a recently introduced memecoin, experienced an almost unimaginable 289,000% increase on Coinbase, only to plunge by 85% just two days after its introduction.
- A massive drop in value resulted from the withdrawal of over $1.9 million from the market, leading to widespread anger and allegations against the developer, who denied wrongdoing.
- The incident serves as a stark reminder of the unpredictable nature of investing in new and developing cryptocurrencies, exposing the perils of this high-risk sector.
A sudden tempest hit the waters of the cryptocurrency world when the BALD token, the latest sensation in digital currency, experienced a rapid and unprecedented rise, followed by a crushing fall. Just two days after being unleashed on the market, and after enjoying a meteoric 289,000% rise on Coinbase, the token’s value plummeted by a staggering 85%.
The downturn was triggered by the withdrawal of 1,034 Ether, equivalent to roughly $1.9 million, from the market. This unexpected move led to a frenzy of accusations on social media, with Twitter users laying blame at the feet of the developer behind BALD, known only by the handle “Bald.” The developer, however, firmly denied the allegations, claiming that their actions were solely related to adding and removing liquidity.
This hair-raising event played out on the Base network, a platform still in its infancy, having opened for developers on July 13. Although Coinbase’s development team had expressly warned average users against engaging with the network, due to the absence of a user-friendly interface (UI), the allure of early profits proved too tempting for many.
These investors, now caught in a quagmire of loss and confusion, bypassed the usual pathways by using development tools to transfer Ether from Ethereum to Base without a UI. Subsequent blockchain data analysis revealed that an account linked to the BALD token had withdrawn 1,009.41 Wrapped Ether in liquidity, adding fuel to the fire of speculation and investor discontent.
Just a week earlier, on July 26, another memecoin, Pond0x, resulted in over $2 million lost due to a technical flaw. These incidents, though shocking, underscore a painful truth about the volatile and unpredictable nature of investing in new cryptocurrencies, particularly memecoins.
Memecoins Bring Crypto Investors for a Rollercoaster Ride in 2023
In the fluctuating world of cryptocurrencies, recent market activities showcase both triumphs and tragedies for memecoin investors. Shiba Inu (SHIB), once riding high, faced a startling 8% slump over the past month, a fall influenced by legal complications involving major trading platforms and unexpected project delays. As SHIB suffered, fresh prospects arose with new players like Wall Street Meme (WSM), Thug Life ($THUG), Chimpzee (CHMPZ), and Bone ShibaSwap (BONE) offering novel investment pathways.
Pepecoin, another memecoin, witnessed a thrilling 70% jump in just a week. However, hidden beneath these exciting gains lies a risky terrain, with signs pointing towards potential future losses. This wild landscape exemplifies the volatile nature of memecoins, where opportunity and peril go hand in hand, keeping investors both thrilled and wary.
