Bald Token Creator Cashes Out $12M In ETH After Price Collapse

The anonymous creator of the viral Bald (CRYPTO: BALD) token has moved approximately $12 million in Ether (CRYPTO: ETH) back to the Ethereum blockchain.

According to data from Lookonchain, the individual behind the bald token shifted 7,000 ether (valued at $12.9 million) from the Base (CRYPTO: BASE) network to Ethereum this past Sunday.

This process, known as "bridging," involves transferring tokens between distinct blockchains.

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Subsequently, the developer deposited 2,100 Ether (equivalent to $3.87 million) into the Kraken cryptocurrency exchange. This is the first instance where more funds were moved out of the Base network than were introduced, as indicated by Dune Analytics.

The sudden popularity of Bald in early August was unexpected, especially since Base, a blockchain developed by crypto exchange Coinbase (NASDAQ: COIN), hadn't officially launched to the public.

The token's value surged by an astonishing 4,000,000% in just a few days after a post went viral, showcasing a trader's impressive profit from a mere $500 investment.

This rapid growth lured over $66 million in Ether into the ecosystem, with investors hoping for substantial returns.

For a brief period, bald appeared unstoppable, boasting vast liquidity, a burgeoning community, a surge of novice traders and an $80 million market cap.

Some even speculated it could rival the success of Shiba Inu (CRYPTO: SHIB).

However, this optimism was short-lived as the token's value plummeted by 90% after the developer withdrew a significant amount of liquidity, leading to widespread panic and a rush to sell.

Previously, the developer had contributed as much as $35 million in Ether to a liquidity pool on Leetswap, a Base network exchange.

This move gave the impression of a well-capitalized project.

The developer likely profited handsomely from fees associated with providing ether against bald tokens and from trading ether for bald as its value increased.

Despite the token's dramatic price decline, the developer remained seemingly unfazed.

"The tokens controlled by the deployer address, including liquidity tokens, are owned by the deployer who reserves the right to do whatever with them," they stated.

They further cautioned potential traders, emphasizing the token's lack of intrinsic value and warning of potential losses.

There's been speculation linking the Bald token to Alameda Research, owned by Sam Bankman-Fried, based on wallet activities and connections to Alameda projects.

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