After weeks of rapid growth, its mysterious creator of bald (BALD) yesterday transferred $12 million in ether (ETH) back to the Ethereum network. Bald had reached a market capitalization of $80 million before some events caused the token price to fall by 90%.
According to data published by analytics company Lookonchain, The bald token developer transferred 7,000 ether (worth about $12.9M) from the Base network back to Ethereum on Sunday. He then deposited 2,100 ether, worth $3.87 million at current prices, to the crypto exchange Kraken.
According to a Dune Analytics query, this is the first time that more funds were sent out of the Base Network than deposited.
The catastrophic fall of Bald
Bald saw a surprisingly increased popularity in early August, when Base, a blockchain created by Coinbase, wasn’t even formally open to the public. A popular tweet about a trader who turned $500 into hundreds of thousands of dollars caused Bald to soar 4,000,000% in a matter of days, bringing in almost $66 million in ether (ETH) from investors looking to squeeze out profits from an otherwise stagnant larger crypto market.
At the time, Bald appeared to have it all: seemingly limitless liquidity, a thriving neighbourhood, an infusion of fresh traders, and, in some quarters, tenuous expectations that it may develop into the next SHIB. This exhilaration, however, did not endure more than a few days. After reaching a high of $0.02795, bald prices dropped by as much as 90% after the token’s deployer removed millions of dollars worth of liquidity, which swiftly affected sentiment as investors moved to remove their funds from the project.
The deployer had previously contributed up to $35 million worth of ether to a liquidity pool on the Base network-based exchange Leetswap, giving the appearance that the project was well-funded. Along with providing ether in exchange for BALD tokens and selling ether for BALD as prices increased, the deployer may have earned millions of dollars in fees.
- After a spectacular mess up, Bald developer has transferred ether worth $12.9 million back to Ethereum Network.
- The developer deposited 2,100 ether on Kraken.
- In most cases, whales transfer cryptocurrencies to exchanges to sell them or trade them for other coins.