Crypto Twitter has been buzzing with controversy and speculation surrounding the launch of a new memecoin called BALD on the Base platform. The coin, named after Coinbase CEO Brian Armstrong, experienced an astonishing 289,000% gain in its first 24 hours of trading. However, the price of BALD quickly plummeted by more than 85% after the anonymous developer behind the token removed a large amount of ETH liquidity from the market. This sudden crash led to accusations of a rug pull, which the developer denied.
In the aftermath of this event, several blockchain researchers and commentators began investigating the developer’s on-chain activity and found a potential link to the founder of FTX, Sam Bankman-Fried (SBF). They discovered that the Ethereum wallet address responsible for deploying the BALD token had received significant funding from wallets associated with FTX and Alameda Research, a crypto trading firm. This discovery led to speculation that SBF may be behind the memecoin scheme while awaiting trial under house arrest at his parents’ home in California.
Blockworks data editor Andrew Thurman further fueled the rumors by revealing that the same wallet address had made numerous transfers to blacklisted USDT addresses and had strong connections to Alameda Research. Pseudonymous trader Hsaka even suggested that the launch and subsequent crash of BALD could be a carefully orchestrated plot to provide the Securities and Exchange Commission (SEC) Chair Gary Gensler with ammunition to prosecute Coinbase, a former rival of FTX.
Another anonymous commentator called “Hype” pointed out several eerie similarities between the developer and SBF, including the sentence structure of their social media posts. Additionally, Hype discovered that the wallet address had been active for a long time and was one of the first voters on proposals on the DeFi platform Sushi Swap.
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However, some members of the crypto community argue against these conspiracy theories, citing SBF’s strict internet usage restrictions as part of his bail conditions. Influencer Tiffany Fong, who has had conversations with SBF, clarified that he has been using a flip phone without internet access and a laptop with restricted internet access since April 2023. Fong dismissed the notion that SBF is behind the BALD scheme, calling Crypto Twitter “mentally ill” for spreading such claims.
Crypto analyst HORSE and trader Scott Melker also expressed skepticism towards the conspiracy theories, urging their followers to refrain from jumping to conclusions without concrete evidence.
While the debate continues on Crypto Twitter, it’s important to approach these conspiracy theories with caution. While the connections between SBF and the BALD memecoin are intriguing, they may simply be coincidental. It is crucial to rely on verified information and evidence before making any judgments or accusations.
In the volatile world of cryptocurrency, where scams and rug pulls are unfortunately common, it is essential to remain vigilant and skeptical. Conducting thorough research, verifying information from reliable sources, and exercising caution can help protect investors from falling victim to fraudulent schemes.
