Today appears to be a very bad day for investors in the BALD meme coin as its price is quickly tanking. The token is down by a massive 33% to $0.008465 in what comes off as one of its most emphatic price drawdowns in recent times. The overnight slump in the price of the Base-based meme coin is due to the massive liquidity removed from the token by its deployer.
According to insights shared by crypto analytics platform Lookonchain, the Bald Deployer has successfully bridged 7,000 Ethereum (ETH) tokens worth approximately $12.9 million from the Base network back to Ethereum and deposited 2,100 ETH worth $3.87 million to Kraken exchange.
Bald Deployer has successfully bridged 7,000 $ETH ($12.9M) from the #Base network back to #Ethereum and deposited 2,100 $ETH($3.87M) to #Kraken.— Lookonchain (@lookonchain) August 14, 2023
There are currently 2,000 $ETH ($3.7M) in bridging and 2,237 $ETH ($4.13M) in the #Base network.https://t.co/mtko220gTR pic.twitter.com/BdB5QIob0s
Following this stunt, there is currently 2,000 ETH amounting to $3.7 million in bridging and 2,237 ETH worth $4.13 million in the Base network, both of which might strain the meme coin should redemption moves in the community intensify.
This liquidity drain by the BALD deployer has been one of the greatest fears being nursed about the protocol since its inception a few weeks ago. While it remains quite unclear what the motivation behind the massive liquidity removal is, analysis points toward a likely rugpull.
Is end here for BALD?
Though the 33% slump in the price of BALD appears to be a very bad idea for the digital currency, the trailing seven-day period has seen the token maintain a 20% upsurge.
Additionally, there has been no panic buying in the community yet as the trading volume is pegged at $579,725.42, with a slight uptick in the past 24 hours. These growth or performance metrics are conflicting and indicate that the onslaught being envisaged might either not be priced in by the community or be padded to prevent a major slump.
Either way, time will distinguish the legitimacy of BALD just as that of PEPE was certified.