The BALD Meme Coin Liquidity Mystery: Is Sam Bankman-Fried Involved?
In the world of cryptocurrency, conspiracies and speculations often run rife. A recent mystery has taken center stage, revolving around the BALD meme coin on Ethereum’s layer-2 network, Base. On a seemingly ordinary Monday, an unidentified developer withdrew all the liquidity from the coin, sparking rampant speculations within the crypto community. Suspicions are surrounding former FTX CEO Sam Bankman-Fried, who currently finds himself under house arrest with limited internet access.
Adam Cochran, a partner at Cinneamhain Ventures, initially proposed the theory that linked Bankman-Fried to the BALD meme coin liquidity mystery. Cochran drew attention to the fact that wallets associated with the incident had past connections to Bankman-Fried.
Cochran noted in his Twitter analysis that the BALD developer likely has affiliations with either Bankman-Fried or his crypto trading firm, Alameda. In particular, Cochran highlighted a correlation between the wallet addresses involved in the BALD case and the SushiSwap community, where Bankman-Fried had actively participated during the departure of its creator, Nomi.
Apparently some former FTX folks think it's sam as well…
— Adam Cochran (adamscochran.eth) (@adamscochran) August 1, 2023
More Evidence Piles Up: The Crypto Community Investigates
Further reinforcing these claims, Cochran indicated that specific phrases from the BALD Twitter account bore a striking resemblance to Bankman-Fried’s style of tweeting. A pseudonymous investor known as Hype echoed these sentiments, noticing a similarity between the BALD deployer DYDX’s tweets and Bankman-Fried’s signature style. Additionally, the timing of the blockchain activity seemed to align with Bankman-Fried’s ongoing legal issues.
Seems like the BASE chain can handle heavy load quite well
— Bald (@BaldBaseBald) July 31, 2023
A separate Reddit investigation supported these theories, revealing that the BALD developer’s wallet had been receiving funds from both FTX and Alameda over the past two years. Investigators discovered the wallet holding approximately 12,331 ETH, which translates to roughly $22 million. A Twitter user shared an intriguing detail, showing regular deposits from an address into the BALD developer’s Binance wallet, previously tied to the devaluation of Terra USD.
Legal Complications: The Bankman-Fried Saga
Bankman-Fried found himself in legal hot water when the U.S. charged him with eight counts of conspiracy and fraud. Department of Justice, resulting in house arrest. These charges followed the collapse of FTX, his crypto derivatives exchange. Both Bankman-Fried’s defense team and the prosecution have been struggling to monitor his extensive online activities. His bail conditions restrict him to the use of a basic flip phone, but prosecutors are concerned about possible witness tampering.
Despite mounting evidence, it’s crucial to remember that these accusations against Bankman-Fried remain unproven speculations. While many in the crypto community have their suspicions, there are also voices of skepticism. For instance, Tiffany Fong questioned the validity of the BALD conspiracy theory on Twitter, dismissing it as baseless.
Guys, SBF hasn't had access to a normal phone or laptop since April 2023 when his bail conditions changed. He's basically been using a flip phone without internet connection & a laptop with restricted access to whitelisted websites (e.g. NYT, WSJ, Courtlistener, etc).
— Tiffany Fong (@TiffanyFong_) July 31, 2023
Note: He…
Aftermath and Repercussions: $BALD’s Comeback
After widespread social media criticism, the anonymous BALD developer returned 100 ETH to the liquidity pool. This action sparked a surge in the meme coin’s value, aiding recovery from its prior low. The story is still unfolding, with fresh developments appearing regularly.
Despite the $BALD coin rug pull incident, early adopters reaped significant returns. @cheatcoiner.eth, a social media user, reported a stunning gain, turning a humble $500 investment into a windfall of $1.4 million. Similarly, @Lookonchain highlighted that within a day, four crypto addresses turned 0.534 ETH into a whopping 554 ETH.
This guy spent 500 $ETH($937K) to buy 13.6M $BALD 5 hrs ago, becoming the largest holder besides the developer.
— Lookonchain (@lookonchain) July 30, 2023
This guy is a $PEPE whale, he sold 720.8B $PEPE for 501.5 $ETH($943K) and then used the $ETH to buy $BALD.
This guy currently holds 3.72T $PEPE ($4.92M). pic.twitter.com/UITgp98Ca5
Rise of the $HAIRY Token
In the meme coin world, the chase for the next 100x or even 1,000x gain continues. The latest potential jackpot, as identified by many crypto enthusiasts, is the Hairy Token ($HAIRY).
In a recent spectacular rise, $HAIRY surged by an astounding 7,000% in just one day. As of now, its market capitalization stands above $700,000, with nearly 300 enthusiasts holding the token. DEXTools has confirmed several positive indicators: the token has secure liquidity, a validated contract, and no transaction taxes apply when buying or selling.
As the BALD and HAIRY saga continues to unfold, it’s clear that the world of meme coins will keep both investors and spectators on their toes. The crypto landscape is ever-changing, and only time will tell whether these speculations and new token potentials will come to fruition.
I felt like being a degen yesterday and bought .0369E of $HAIRY. Up 2x so far. Thesis is $BALD is going off so why can’t $HAIRY do the same.
— matt (@mr_intuition) July 31, 2023
According to dextools they had a decent contract and when I looked up the ticker on X there were some spam tweets/big spam influencer…
Decentralized Bets on SBF’s Involvement
In the midst of these high-stakes speculations, the crypto community has taken an interactive approach to deal with the uncertain situation. Decentralized betting platforms are witnessing a flurry of bets regarding whether SBF launched the BALD token. These platforms have enabled traders to place their bets on either side of the argument, leading to an intriguing landscape of decentralized predictions.
bet on if sbf launched BALD https://t.co/rTf3SneTmC
— Polymarket (@Polymarket) July 31, 2023
Bets are open for anyone confident enough in their interpretation of the situation. The “Did SBF launch BALD?” betting platform shows a wide array of bets. At present, the betting landscape indicates a 96% likelihood of a “No” outcome, suggesting that the majority of bettors believe Bankman-Fried is not behind the BALD token launch.
A look at the order book of the betting platform provides a snapshot of the community sentiment. As of the latest updates, bettors willing to “Trade Yes” (indicating SBF’s involvement) have placed their bets at different price points. The highest bid stands at 88 cents per share, with the bidder staking 78.46 shares for a total of $461.60. Bids at lower prices are also significant, with a substantial bid of 1,000 shares at just 4 cents.
On the contrary, a lone bid at the price of 1 cent for “Trade No” (indicating SBF’s non-involvement) can be seen. The bidder has staked 205 shares, totaling to just $2.05, further indicating a prevalent skepticism about SBF’s involvement in launching the BALD token.
BALD Team Attempts to Justify Actions
As the BALD meme coin scandal unfolds, the team behind BALD coin is striving to explain their actions and intentions. They have publicly stated that they have not sold any assets, and it seems they are hinting at an underlying purpose for the meme token that goes beyond conventional expectations.
According to the BALD team, their actions could be aimed at testing the load capacity of the Base network. This possibility suggests a strategic purpose for the BALD token that contrasts with the general perception of meme tokens as merely speculative assets. If true, this could imply that the BALD token was created as an experimental tool to study the resilience and performance of the Base layer-2 network under stress conditions.
How tf Coinbase which is heavily regulated has created the chain where:
— serp1337.eth (@serpnofomo) August 1, 2023
– Withdraws are disabled
– The biggest coin ($BALD) rugs
– The biggest DEX is being hacked
Base feels so wrong pic.twitter.com/YxLda8MQwP
This narrative, however, does not completely align with the suspicion of financial maneuvering associated with the withdrawal of liquidity. It may be an attempt by the BALD team to deflect criticism and regain some level of trust within the crypto community.
The team’s justification raises more questions than it answers. If the intent was to test the Base network, why was this not clearly communicated from the outset? Also, how does this reconcile with the suspicious financial transactions connected to the BALD developer’s wallet?
While it’s unclear if the community will accept this explanation, it’s evident that the BALD incident has triggered important discussions about transparency, accountability, and the purpose of meme coins within the broader cryptocurrency ecosystem.
Read more:
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- Bald 30,000% and Сurve Exploit – What Happened in Crypto This Weekend
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About The Author
Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
