The renowned meme coin $BALD witnessed an extraordinary downfall recently, following its equally impressive rise over the weekend. The coin, which was crafted on Coinbase’s Ethereum layer-2 scaling solution called Base, suffered a 90% reduction after reaching an all-time high of approximately $0.97 and securing nearly $100 million market cap.
This sudden decline was ascribed to rising speculations of $BALD metamorphosing into a notorious “rug-pull”, meaning the token’s issuer might have siphoned off substantial decentralized exchange (DEX) liquidity. Earlier on Monday, the meme coin had up to $32 million worth of ether (ETH) pooled in its DEX. Yet, it’s reported that the developers removed 7,000 ETH tokens, transforming $BALD into an artful scam to lure novice investors and then leaving them high and dry with a liquidity pull.
The $BALD debacle should be an insightful warning to meme coin investors about the risks associated with this market. It’s prudent to never place your bets on a meme coin without scrutinizing its contract through a reliable platform like DEXTools. This can help you ensure that the token’s creators haven’t awarded themselves unjust advantages, such as the ability to mint extra tokens, impose/change buy or sell taxes, freeze trade, limit trade, or blacklist any wallets.
Also, always look out for meme coins that have locked liquidity – again, a detail which DEXTools should show you. Despite ending on a sour note, $BALD did manage to line the pockets of few early investors. An investor known as @cheatcoiner.eth, turned a $500 initial investment into $1.4 million, displaying that the game isn’t bereft of rewards.
Keen eyes are now watching the next potential breakout – Hairy Token ($HAIRY). After skyrocketing 7,000% just in 24 hours, HAIRY currently flaunts a market cap of over $700,000 and a steadily growing base of nearly 300 holders. Unlike $BALD, $HAIRY appears to be a safer bet since DEXTool’s verification assures that its liquidity is locked, its contract is verified, and it isn’t rigged with buy or sell taxes or any unfair perks for the developers, who have also renounced the contract (giving up any control over both project and token).
Despite its smaller market cap, the rug-pull-proof contract of $HAIRY might appeal to the disillusioned $BALD investors and may even surpass $BALD’s $100 million market cap. Time, as always, shall reveal the true winners in the often unpredictable world of meme coins.
Source: Cryptonews
