After a series of events led to a significant drop in the price of the Bald (BALD) token, the developer behind it has transferred $12.9 million worth of ether (ETH) back to the Ethereum network. Additionally, the developer has deposited 2,100 ether, valued at $3.87 million, onto the cryptocurrency exchange Kraken. This move comes after Bald experienced rapid growth, reaching a market capitalization of $80 million before the token’s price fell by 90%.
Analytics company Lookonchain reported that the Bald token developer transferred 7,000 ether from the Base Network back to Ethereum and then made the deposit on Kraken. It is worth noting that this is the first time more funds have been sent out of the Base Network than deposited, according to data from Dune Analytics.
The Rise and Fall of Bald
In early August, Bald gained significant popularity, even before the formal opening of Base, a blockchain created by Coinbase. The token saw a massive surge of 4,000,000% in just a few days, reaching a market cap of $66 million in ether. However, this excitement was short-lived as the token’s price plummeted by 90% due to the removal of millions of dollars’ worth of liquidity by the token’s deployer. This move negatively affected investor sentiment, leading many to withdraw their funds from the project.
The deployer had initially contributed $35 million worth of ether to a liquidity pool on the Base network-based exchange Leetswap. This made the project appear well-funded, and the deployer potentially earned millions of dollars in fees by providing ether in exchange for BALD tokens and selling ether for BALD as prices increased.
Frequently Asked Questions
What is the Bald token?
The Bald token (BALD) is a cryptocurrency that experienced significant growth and subsequent price decline. It gained popularity in early August but faced a drop in value after the removal of liquidity.
Why did the developer transfer ETH back to Ethereum?
Following the decline in Bald’s price, the developer decided to transfer $12.9 million worth of ether back to the Ethereum network.
Why did the developer deposit ether on Kraken?
The developer deposited 2,100 ether, valued at $3.87 million, onto the cryptocurrency exchange Kraken. The reason behind this move is unclear.
What caused the drop in Bald’s price?
The price of Bald dropped by 90% after the token’s deployer removed millions of dollars’ worth of liquidity. This move affected investor sentiment and led to many withdrawing their funds from the project.
What is the Base Network?
The Base Network is a blockchain created by Coinbase. It was not formally open to the public at the time of Bald’s surge in popularity.