BALD tokens, recently launched on the Base blockchain, experienced a dramatic drop in prices on Monday after the token’s deployer removed millions of dollars’ worth of liquidity. According to data, BALD tokens had held as much as $32 million Ether (ETH) during European morning hours, but the developer’s move caused prices to fall to 1 cent from 9 cents. Despite the initial panic, prices seemed to recover to 4 cents as traders bought the dip.
The sudden surge in popularity of BALD tokens on Sunday had caused the token’s market capitalization to reach $50 million, and later $85 million. This led to traders like @cheatcoiner making over $1.4 million from an initial $500 investment.
At the time of writing, blockchain data showed that the deployer was adding liquidity in smaller batches of Ether. Prices steadily rose, but panicked holders continued to sell tokens en masse.
Base, built by crypto exchange Coinbase on OP Stack, launched its testnet in January and opened to builders in mid-July. Despite the sudden rush of capital and users to the blockchain on Sunday, traction has been scant so far.