31 Jul 2023 Samantha McLauren
BALD Makes A Pump-And-Dump, Increasing Over 40,000 Times
Understanding timing is crucial when it comes to crypto coins. A listing, some positive press, a story, or a community are just a few of the factors that might cause a token to skyrocket quickly. This is the situation with BALD, a memecoin that was just released in Coinbase's Base, a layer two chain, built by the crypto exchange on Ethereum. Its market cap increased by 40,000% in just 48 hours from 0 to $50 million.
Only one-way bridging from Ethereum, which must be done through a specific contract address, is currently supported by Base Network. In the previous day, BALD had over 11,000 transactions, with more over 4,300 holders, according to CoinGecko and BaseScan explorer.
There are also some accounts of traders who made enormous sums of money by placing little bets. For instance, according to cryptocurrency outlet NinjaNews, anonymous trader Cheatcoiner purportedly earned $1.5 million from a $500 investment. It's uncertain whether he could cash on these profits. Even before the token's market valuation reached $50,000, the user reported purchasing 2% of its 1,000,000,000 total supply.
In the past, Coinbase's listings had a big impact on token pricing. Similar results might be obtained from the rollout over their chain. Launching Base Network, the newest thing, has an impact on projects, particularly from a speculative standpoint.
The stories behind the projects and how their tokens can become meme coins are another factor. It suffices for Bald to pass certain requirements related to being interoperable with Ethereum, making use of Base's uniqueness as a new chain, rather than having outstanding technology or fundamentals. This year, the same thing happened with Bitcoin's Ordinals and BRC-20 tokens, and meme coins like PEPE gained notoriety at the time.
Finally, this incident can be explained by realizing that market capitalisation in cryptocurrency marketplaces isn't a reliable indicator of a project's viability or health. Consider a recently released project with a 1,000,000 token circulating supply. The fact that it can be found for $1 on a mysterious decentralized market does not necessarily indicate that it has that much liquidity.
Although the liquidity of the BALD token increased, not all of its holders were able to cash out at the same price. The pump will be almost completely gone by the time this story is published.Coinbase meme coin cryptocurrency news crypto news Crypto Price Market Capitalization