A sudden surge and subsequent plunge in the price of the hyped memecoin, the BALD token has stirred a frenzy in the crypto community. The coin accrued over $68 million from traders, increasing its price by an astounding 4,000,000% only to take a discouraging nose-dive when deployers started withdrawing liquidity from the token’s trading pairs in a sudden move that left thousands of investors hanging.
Certain crypto enthusiasts have linked the BALD token’s creator’s wallet to a wallet associated with Alameda Research. The potential ties became a point of interest to sleuths due to a strong perception of technical expertise and deftness in DeFi usage tied to the wallet; it showcases a history of trading on platforms such as dYdX, Oasis, among others. The wallet also exhibited active exchanges on Binance, FTX, and Coinbase (COIN), with significant investments on early DeFi projects.
Pool of speculations rose linking the wallet’s activity to Sam Bankman-Fried, the founder of Alameda Research. However, Igor Igamberdiev, Wintermute’s head of research, stated that while the actions point towards someone from Alameda, it’s unlikely to be Bankman-Fried himself.
All of this occurred amusingly on the yet to be publicly launched Base blockchain, a new layer-2 blockchain by Coinbase. With its testnet launched in January and builders gaining access in mid-July, Base only started seeing traction on Sunday with a sudden rush of investors, driven by the allure of the BALD token.
Nonetheless, despite the suggestive on-chain evidence involving an Alameda-controlled wallet and the BALD deployer wallet, it seems improbable that Bankman-Fried, amidst his ongoing legal tussle, is the mastermind behind it. Considering Bankman-Fried’s bail conditions outline stringent internet access restrictions, monitored by his parents via special software, the likelihood of him directing these sophisticated blockchain machinations reduces significantly.
While this incident shines a spotlight on potential market manipulation, it also highlights the vulnerability of traders in an ever-volatile crypto market. The incident serves as a stark reminder of the heightened risks and speculative nature of the crypto world, warranting careful navigation by investors. Proving once again, the necessity for vigilance and thorough research before jumping into the exciting, yet unpredictable world of cryptocurrencies.
Source: Coindesk
