BALD was one of the fastest-growing meme coins in recent times. Its popularity was fueled by significant investments from big whales, propelling the liquidity of the coin to over $35 million. This was an exceptionally high figure, indicative of the coin’s rapid growth and the investors’ confidence in it.
However, the coin’s success story was short-lived. In a shocking turn of events, the creator of $BALD, who held a significant portion of the coin’s liquidity, decided to withdraw it. This action, commonly referred to as a “rug pull”, led to a sharp decline in the token’s price, almost reaching zero. The liquidity pool was drained, causing significant losses for those holding $BALD.
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Show more +The transaction details reveal a withdrawal of over 6,000 ETH, which is currently valued at over $25 million. This amount accounts for more than one-third of the entire bridged ETH on Base, a platform where the creator now holds the funds. Despite the substantial earnings from this rug pull, the individual is currently unable to withdraw the ETH to the mainnet.
This incident underscores a critical issue in the cryptocurrency market – the lack of locked liquidity. Without this safeguard, whales can control the supply and withdraw all the funds whenever they want, leaving other investors in the lurch.
To mitigate such risks, Crypto analyst Finish suggest trading pairs where the liquidity is locked. Platforms like UNCX token provide such services. However, it’s crucial to note that not all platforms offer this level of security. For instance, on Base, everything was raw, and proving the contract was not possible. This lack of verification could lead to a situation known as a honeypot, where one can buy but can’t sell.
In conclusion, this incident serves as a reminder of the importance of due diligence in the world of cryptocurrency. Checking a contract before investing and ensuring that the liquidity is locked and the contract is verified can help secure one’s funds. While the allure of quick profits can be tempting, safe investing practices are crucial in navigating the volatile landscape of cryptocurrency.
