BALD rug pull wipes out 90% of value, hitting Base DEX LeetSwap: A timeline of events

  • BALD meme coin reached $100 million market within 48 hours of launch, crossing $25 million liquidity in a LeetSwap-based pool. 
  • The BALD deployer exhibited malicious behavior and generated a net profit greater than 3,100 ETH tokens. 
  • The BALD rug pull triggered a mass sell-off in the Base-based DEX LeetSwap’s token LEET, nearly 52% losses for holders overnight. 

BALD emerged as the latest meme coin in the crypto ecosystem, drawing degen crypto traders to speculate over massive gains within the first 48 hours of its launch. The meme coin reached a market capitalization of $100 million within two days with $25 million in liquidity added to the token’s liquidity pool on LeetSwap.

Here is a deep dive into the timeline of events concerning BALD’s rug pull by its developer on LeetSwap exchange.

FXStreet has extensively covered BALD since its launch:

BALD developer rug pulled the token, wiping out millions of dollars in value

Gary Gensler, chair of US financial regulator the Securities and Exchange Commission (SEC), once referred to the crypto ecosystem as “the wild West.” In line with Chair Gensler’s quote, a meme coin on Coinbase’s Layer 2 chain BASE, was rugged by its developer. 

BALD meme coin’s rug pull wiped out $100 million in the token’s market capitalization, and the token’s price dropped nearly 93% from its all-time high of $0.0938. Analysts on crypto X (formerly Twitter), analyzed the transactions associated with the addition of liquidity to the pool and its massive withdrawal from the pool.

Developer lured traders by adding massive liquidity to the pool

BALD deployer cumulative activity that lured degen traders to the pool

BALD deployer cumulative activity that lured degen traders to the pool 

BALD’s developer, known by the Twitter handle @BaldBaseBald, added over 6,700 ETH ($12.5 million worth of liquidity) in the first 24 hours – a surprising amount of capital for a meme coin on a new chain. 

The addition of a large volume of liquidity fueled bullish sentiment among crypto traders, driving the token’s price higher and encouraging traders to add their funds to the pool. The catch was that Base mainnet has not been launched yet, and bridged funds cannot be bridged back, meaning liquidity added to the pool is locked.

Speculation was rampant among crypto traders

X was abuzz with speculation of Samuel Bankman-Fried or Coinbase CEO Brian Armstrong himself being the entity behind the handle @BaldBaseBald. Popular analysts and influencers like @HsakaTrades fueled the speculation through their recent tweets. 

With speculation rife in the crypto community, the deployer stopped adding liquidity to the pool, and BALD price started stagnating. The deployer drove the token’s price higher before draining the pool. The first round of withdrawals involved 10,500 Ether worth nearly $20 million. The developer’s grand P&L was close to $6 million worth of Ethereum. 

Complete timeline of BALD rug pull

LeetSwap DEX’s role in BALD rug pull

The decentralized exchange on Coinbase’s Layer 2 chain BASE halted swaps in all pools on its platform. BALD’s rug pull resulted in a bloodbath for LEET token holders.

LEET price declined upwards of 50% from its all-time high of $32.01. 

The exchange informed users that an investigation is underway. If they have not locked their liquidity, they are free to move it and secure it from the risk of exposure to similar exploits in the future.

Like this article? Help us with some feedback by answering this survey:

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Why is Pepe meme coin rallying? What’s next after PEPE’s ATH? Premium

Why is Pepe meme coin rallying? What’s next after PEPE’s ATH?

Pepe (PEPE) price shows signs of continuing its uptrend, but it might come after a correction. This short-term pullback could be used by sidelined buyers to accumulate PEPE for the next leg up.

More Pepe News

Grayscale launches new investment vehicles for NEAR and STX

Grayscale launches new investment vehicles for NEAR and STX

Grayscale announced the creation and launch of Near Protocol (NEAR) and Bitcoin Layer 2 Stacks (STX) single asset trusts. The company stated that the launch is an attempt to satisfy increased investors' demands for diversified crypto-asset exposure.

More Cryptocurrencies News

Ethereum on the brink of 75% rally as SEC approves ETH ETFs

Ethereum on the brink of 75% rally as SEC approves ETH ETFs

Ethereum (ETH) bounced back after a brief dip on Thursday as the Securities & Exchange Commission (SEC) approved spot ETH ETFs in a shocking U-turn. US lawmakers had earlier penned a letter to Chair Gary Gensler, urging him to approve the ETFs.

More Ethereum News

XRP set for rally after Coinbase listing in New York

XRP set for rally after Coinbase listing in New York

Coinbase's Chief Legal Officer announced the listing of XRP for its New York clients. XRP was initially removed from the exchange in January 2021 due to an SEC lawsuit on claims of the asset breaking securities regulation.

More Ripple News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

Read full analysis