Bald Network developer transfers 7,000 ETH to Ethereum, deposits some on Kraken

After a major mishap, a developer from the Bald Network has sent back $12.9 million worth of Ether (ETH) to the Ethereum Network. Additionally, the developer has deposited 2,100 ETH on the Kraken crypto exchange. Typically, large holders, known as whales, transfer their cryptocurrencies to exchanges to sell or trade them for other coins.

In recent weeks, the creator of the Bald (BALD) token made a transfer of $12 million worth of ETH back to the Ethereum network. The token, which had reached a market capitalization of $80 million, experienced a 90% drop in value due to certain events. Data from analytics company Lookonchain reveals that the developer transferred 7,000 ETH, equivalent to approximately $12.9 million, from the Base network back to Ethereum. Subsequently, 2,100 ETH, worth $3.87 million at the current prices, were deposited on Kraken.

A Dune Analytics query shows that this was the first time that more funds were sent out of the Base Network than deposited.

The downfall of Bald

In early August, Bald gained unexpected popularity even before the Coinbase-created blockchain, Base, was officially accessible to the public. The token surged by 4,000,000% in just a few days after a tweet about a trader turning $500 into hundreds of thousands of dollars went viral. This influx of attention resulted in nearly $66 million worth of ETH being invested in Bald, as investors sought to profit from the otherwise stagnant broader crypto market.

At the time, Bald seemed to have everything going for it: abundant liquidity, a thriving community, an influx of new traders, and even hopes in some quarters that it could become the next SHIB. However, the excitement was short-lived. After reaching a peak of $0.02795, the price of Bald plummeted by as much as 90% when the token’s creator removed millions of dollars’ worth of liquidity. This had an immediate impact on investor sentiment as they rushed to withdraw their funds from the project.

The creator had previously contributed up to $35 million worth of ETH to a liquidity pool on the Leetswap exchange, which was based on the Base network. This gave the impression that the project was well-funded. In addition to exchanging ETH for BALD tokens and vice versa, the creator may have earned millions of dollars in fees.