A relatively obscure cryptocurrency, BALD Coin, has recently drawn attention by eliminating 60% of its tokens from circulation. This drastic measure, often referred to as a token burn, has historically been known to affect a cryptocurrency’s value. In BALD Coin’s case, the burn of 600 million tokens, valued at over $12 million, catalyzed a staggering 59% surge in its price within a day, jumping from $0.0348 to $0.0567.
Burning Controversy
Investors and community members remain divided over the developer’s credibility due to a past rug pull incident that involved 3,000 ETH. This recent token burn has sparked a fresh wave of debates about the project’s legitimacy and the developer’s actual motives, with some wary of the developer’s history and intentions.
Impact on Meme Coin Market
The token burn not only boosted BALD Coin’s value but also had a ripple effect on other meme coins on the BASE network, reminiscent of last year’s short-lived meme coin frenzy. Tokens like TOSHI, MOCHI, SMUDCAT, DEGEN, and BRETT have seen increases ranging from 8% to an impressive 154%, raising expectations for potential short-term gains across the BASE network’s meme coin sector.
Despite the bullish trend, these meme coins on the BASE network remain relatively small in market value when compared to their counterparts on more popular networks. This gap suggests the possibility of high volatility and a cautious outlook, considering the BASE network’s lower profile and its impact on speculative trading.
While meme coins are often driven by community support and viral trends, the controversial actions by BALD Coin’s developer highlight the inherent risks in the market as attempts are made to restore the token’s reputation following past scams.