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BALD Meme Coin Pares Off Accrued Gains Amid Fears of Liquidity Pulloff

Mon, 07/31/2023 - 11:11
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Godfrey Benjamin
New meme coin BALD is on rampage amid blurred links with Coinbase
BALD Meme Coin Pares Off Accrued Gains Amid Fears of Liquidity Pulloff
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The meme coin frenzy is far from over as Coinbase-linked Base, its Layer 2 protocol, welcomed a meme coin that is trending in the Web3.0 world today. Dubbed BALD, the meme coin earlier printed a total of 30,000x growth in just a 24-hour span, a record upsurge that even new meme coins launched this year could not boast of.

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Earlier in the day, the meme coin was changing hands at a price of $0.05604, according to data from DEX SCREENER. In just a few days since it went live, BALD has grown its market capitalization to more than $70 million, impressive growth that is characteristic of high flier meme coins.

There is much speculation surrounding the emergence of BALD in the community today, and it is fueling skepticism about whether or not it is a legitimate crypto project. One of those speculations is how it has a robust liquidity that is powering its trades, seeing as the Base protocol bridge is mono-directional.

According to reports, there are a total of 25,000 ETH deposited on the Base chain to help provide liquidity for the BALD token. This liquidity is notably well distributed, with DEX platform LeetSwap having more than 9,800 WETH in liquidity.

Supposed Coinbase connection

The emergence of BALD is assumed to have a connection to Coinbase CEO Brian Armstrong owing to the large liquidity that was initially supplied to bootstrap the token.

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While the speculations and connections to the Coinbase CEO appear quite far-fetched, the figures surrounding the launch of the token suggest that a whale connected to the exchange might be directly involved in the launch.

Meme coins are highly speculative with massive volatility that can dissipate in a short time. The early days of PEPE came with speculation that the token may be a scam and, over time, it proved itself as a project that is here to stay. While BALD is seeing enticing growth for now, time will tell whether or not the meme coin is legitimate.

Liquidity instability

Despite the early gains reported, a large whale has pulled as much as 6,000ETH in liquidity from BALD, according to transaction tracker BaseScan. This enormous liquidity has pricked the already fragile meme coin, with its value at the time of writing plummeting as much as 90%.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on Blockchain.news, Cryptonews and Coingape, among others.