Blockchain News

Is FTX Founder SBF Behind the Bald Coin Scam?

Scammers executed a rug pull on Bald coin, removing $25.6 million in liquidity, causing token's value to plummet by 92%.

Bald Token: To the Moon and Back to Earth in 24 Hours

Bald token, a new meme coin on Coinbase’s Base network, has plunged after its developer allegedly pulled millions in liquidity from the market.  

The Bald token was launched on July 30, and its value skyrocketed by over 3,000% in just one day. This astonishing surge attracted the attention of enthusiastic traders who rushed to buy the new token on the decentralized exchange LeetSwap.

The euphoria surrounding Bald was short-lived, as it became apparent that the token was a victim of a rug pull. The token's deployer swiftly removed $25.6 million in liquidity, causing its value to plummet by 92%. 

The aftermath of this maneuver left many investors in disbelief and raised questions about the identity of the elusive Bald coin deployer. The suspicions of the crypto community have now turned to the token's mysterious deployer, with many pointing fingers at none other than SBF, the founder of the FTX exchange and a figure known for previous crypto-related controversies.

Speculations Pointing Towards SBF

The crypto community's collective sleuthing instincts came to the fore as speculations started circulating about the potential identity of the Bald token's deployer. "hype_eth," a Twitter user, posted a list of possible connections, sparking a wave of speculation.

In addition, analyst Colin Wu pointed out that the deployer's wallet frequently and substantially transferred funds to FTX, a crypto exchange founded by SBF. Moreover, another address linked to the deployer engaged in $20 million worth of transactions with Alameda-related addresses, a company co-founded by SBF.

Ethereum advocates Ryan Sean Adams also joined the fray, suggesting that SBF, who had a history of controversial crypto endeavors, might have been involved in launching a $30 million scam disguised as a meme coin called BALD. These theories gained momentum as some pointed out similarities in language usage between the Bald Twitter account and SBF's tweets.

Furthermore, a Reddit investigation revealed intriguing details about the BALD developer wallet, which accumulated a balance of 12,331 ETH (about $22 million) over a significant period.

Another Twitter user, who goes by cryptobran_ o observed that an address frequently depositing into the BALD deployer's Binance wallet might be linked to the catastrophic depeg of Terra USD last year. Nevertheless, it is unclear whether SBF or the FTX/Alameda team is solely at fault.

The Unlikeliness of SBF's Involvement

As speculation spread, some experts and researchers urged caution before jumping to conclusions. Notably, the probability that SBF or the FTX/Alameda core team was behind the Bald deployer was very low.

FrankResearcher brought attention to the fact that substantial funds flow with Coinbase worth $40 million, making it unlikely for the deployer to maintain a fake KYC without being caught. The FTX auditors should also be aware of SBF's address, given the exchange's extensive transactions with him.

The identity of the Bald coin deployer, suspected by many to be SBF, remains shrouded in mystery. While speculations abound, concrete evidence is yet to surface. As the crypto community continues its investigations, it serves as a reminder that, in the fast-paced world of cryptocurrencies, caution and diligence are paramount. 

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