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- 1 BALD token launched on the Base network and met a similar fate as most meme coins do.
- 2 The token saw a rise of over 40,000% since its launch a day earlier.
Memecoins are perhaps the crypto assets for the speculators to put on wager. Such digital assets follow a trend, to see a pump within some time of their launch and a freefall in the price in the coming days. The trend repeated with the newly launched asset on CoinBase network’s scaling solution Base network, BALD.
BALD launched on July 30, 2023, and the memecoin saw a massive surge within no time. The fate is similar to most newly launched cryptocurrencies, especially if they hold ties with already popular and stable brands in the industry.
Within a single day, the market capitalization of BALD rose to $50 Million. According to BaseScan Explorer, currently, the BALD token price is at $0.04760842 and trading volume stands at nearly $101 Million. It has seen over 20,000 transactions in the last 24 hours.
The number of holders of the crypto asset, with 1,000,000,000 BALD in maximum supply, reached over 5,600.
Cashing Out BALD Investment Profits is Challenging
Though the memecoin has seen a tremendous up move in a small period of time, it is potentially on paper for the time being. Many early investors boasted to make even millions following the initial investments in BALD. However, the monetization of the so-called profits is still dubious.
The reason behind investors’ inability to cash out their profits on BALD investment, according to a Forbes report, is the lack of liquidity. The number of investors and BALD token price have gone up rapidly but the same is not the case with liquidity. So, it will not be possible for holders to exit with the claimed profits.
For instance, a pseudonymous trader named Cheatcoiner bought approximately 2% of the entire BALD token supply when the market cap was on a gradual rise. As the valuation pumped, the investment of $500 rose to a whopping $1.5 Million later. It is yet to know if the trader could take the money home after cashing out.
Big Connection Gives Push, Needs Liquidity to Sustain
Newly launched crypto tokens are always prone to conjectures. The backing of some prestigious project or listing on a prominent platform makes the token price take an instance jump.
Such projects were in abundance in the past which attained massive trading volume and price surge. Bitcoin Ordinals and BRC-20 tokens saw significant highs since their launch given their connection with the biggest cryptocurrency blockchain, Bitcoin (BTC).
The connection of BALD with the second biggest cryptocurrency blockchain network Ethereum (ETH) through Base could be the reason to facilitate the pump.
Leading cryptocurrency exchange, CoinBase launched the Base on July 13, 2023. Though the developers have access to the network, activities like trading turn out to be technical.
In addition, since the Base network acts as a one-way bridging solution from Ethereum and only specific contract addresses allow the connection, users are unable to bridge off their tokens from the network. This means, if Ethereum (ETH) gets deposited on the once, the transfer of tokens back or to any other network.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
