BALD Meme Coin's Meteoric Rise and Fall: Possible Ties To Alameda Research

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Aug 1 2023

last year3 minutes read

A cartoon robot holding a sign that says Be Careful or High Risk, to symbolize the volatility and potential dangers involved with meme coins and layer 2 platforms.

The BALD Phenomenon and Its Possible Alameda Research Connection

Written by Van

On an eventful day, a then-unknown meme coin, BALD, took the cryptocurrency market by storm. The value of BALD spiked incredibly, amassing a market capitalization of nearly $100 million. Remarkably, the coin managed to accumulate a $50 million market cap just hours after its first tweet.

As trading became more robust, its value rose to an impressive $85 million. This extraordinary growth led to massive profits for some investors, with reports of one user making over $1 million from a modest $500 investment.

However, the euphoria soon turned into chaos. BALD’s developers removed liquidity from the BALD/WETH liquidity pool, leading to a significant drop in the coin's value. In the aftermath, BALD's value suffered a drastic fall of over 90%, with its market cap shrinking below $3 million.

Available liquidity in the BALD/WETH pool also dried up to a mere $38,000.

Concurrently, murmurs around BALD's connection with Alameda Research started surfacing. Alameda Research, a prominent cryptocurrency trading firm headed by Sam Bankman-Fried, found itself thrown into the speculation due to tell-tale clues in wallet activity.

These suspicions escalated when an analysis by a researcher from Wintermute revealed potential connections between BALD and Alameda Research. The research highlighted wallet addresses tied to BALD that showed substantial activity on various platforms, indicative of the owner's capital and technical acumen.

LeetSwap's Predicament: A Significant Exploit

A person looking at a graph showing a meteoric rise and sudden fall, to visualize the dramatic spike and crash of BALD coin's value (1).webp

While the BALD coin saga unfolded, there was turmoil in another quarter - LeetSwap. The decentralized exchange, functioning on Coinbase's base network, fell prey to a sophisticated exploit.

The perpetrator deftly manipulated the price, invoked a vulnerable function of the Liquidity Provider (LP) contract, transferred tokens to a fee address, and then swept up all the available WETH tokens, causing a loss of 342.5 ETH, equivalent to roughly $626,000.

The attack raised questions about the platform's security measures and shed light on the risks that such exchanges grapple with daily. The feedback provided by Wintermute's head of research, Igor Igamberdiev, suggested that the exploited function should not have been public, indicating a fundamental flaw in the system design.

A New Chapter in BALD's Collapse

In a shocking turn of events, the previously hyped BALD meme coin's trading volume shriveled by an astonishing 96%. A corresponding plunge in coin value has riddled investors with worry.

This dramatic descent, as realized by several investors, ties back to a sizable withdrawal of liquidity from the meme coin's contracts - over 6,000 ETH worth. Experts suggest this could be an instance of the infamous rugpull scam - where developers abruptly dump a project and take off with investors' funds.

Following the liquidity pull, BALD coin's price took a harsh hit, leaving a trail of financial wreckage for the holders.

Adding fuel to the fire, growing speculations suggest a potential link between BALD's debacle and Alameda Research. Confirmation of this suspicion might further exacerbate the loss of faith in similar projects among investors and the broader crisis encompassing BALD.

A spark of optimism surfaces with the recent introduction of a new BALD token, complete with locked liquidity. However, it's a tall order to regain the trust of investors who've already faced significant financial losses amid the suspected rugpull. As this rollercoaster of a cryptocurrency journey unfolds, one learns that the cost of substantial gains may sometimes be very steep.

Busy Days for Coinbase's Layer 2 Network Amidst Memecoin Madness

An abstract image with interconnected dots and lines, to represent the connections between BALD, Alameda Research, and crypto wallets (1).webp

Coinbase's Layer 2 blockchain, commonly known as Base, was witnessing its share of activity. In just 24 hours, the network recorded over 276,000 transactions, indicating a significant uptick in usage.

Meme coins like BALD claimed a significant part of this surge, with its dramatic ascent making it the centerpiece of the crypto talk.

Remarkably, even before its public launch, the Base blockchain managed to allure traders in hordes, with hopes of reaping substantial returns from meme coins. The inflow of Ether into the network was a strong testament to this traction, attracting over $48 million into the network.

Base Blockchain's Magnetism: An Unprecedented Surge in Ether Inflow

Base wasn't just a popular choice for traders; it was a hotbed for Ether inflow too. Riding on its increasing popularity, the blockchain witnessed an influx of a staggering $68 million worth of Ether in as little as 48 hours.

On the one hand, the inflow denoted an impressive market move, while on the other hand, it unfolded exploitative practices by opportunistic developers, manifesting the inherent risk in the crypto environment.

FAQs

1. What caused the sudden rise and fall of the BALD Meme Coin's value?

BALD Meme Coin had an unprecedented growth trajectory, amassing a nearly $100 million market cap in a single day. However, the coin’s developers' decision to withdraw liquidity from the BALD/WETH liquidity pool led to a swift and drastic decline in its value.

2. What are the suspected ties between BALD and Alameda Research?

While Alameda Research’s CEO denied any association with BALD, rigorous analysis by a Wintermute researcher suggests potential connections based on striking similarities between wallet addresses tied to BALD and the trading patterns specific to Alameda Research.

3. What was the exploit on LeetSwap that led to significant losses?

A sophisticated attacker manipulated the price on LeetSwap by invoking a vulnerable function on the Liquidity Provider (LP) contract. The attacker transferred tokens to a fee address and then bought all the available WETH tokens, leading to a loss of about 342.5 ETH or over $626,000.

4. What impact did the BALD Meme Coin episode have on Coinbase's Layer 2 Network?

The BALD coin saga led to a significant increase in activity on Coinbase's Layer 2 blockchain, Base. Accompanying this surge in activity was the launching of several meme coins on Base, leading to a frenzy among traders.

5. What is the key takeaway from the events revolving around BALD, LeetSwap, and Base?

These events serve as a stark reminder of the volatile and unpredictable nature of the crypto market, especially surrounding meme coins and layer-2 blockchains. While these platforms and tokens promise alluring returns, they also come loaded with significant risks, such as opportunistic exploits and rug pulls.

Pivotal Lessons Imbued in the BALD Meme Coin Story

The experience around BALD, LeetSwap, and Base paints a vivid picture of the electrifying dynamism of the crypto market, specifically with meme coins and layer 2 blockchains. The game of significant returns bears an equal or more significant risk quotient, as evidenced by the BALD's dramatic rug pull and the exploit on LeetSwap.

The persistent risks associated with these platforms highlight the need for heightened vigilance for traders and investors. While the crypto ocean can be generously rewarding, it can be violently turbulent as well.

This article has been refined and enhanced by ChatGPT.