Cryptocurrencies have a critical aspect in terms of price performance, which is the circulating supply, and burns can trigger rallies. We have seen this happen many times, and conversely, we have witnessed prices melt as the circulating supply rapidly increased. Recently, a little-known altcoin made headlines by burning 60% of its supply.
BALD Coin
In August, BALD Coin, which was in the news for a rug pull scam involving 3,000 ETH, is now making headlines again with a token burn. The developer destroyed approximately 600 million BALD tokens, worth over $12 million, which resulted in a 59% price increase in just 24 hours. BALD Coin’s price soared from $0.0348 to a peak of $0.0567.
There are various disputes among investors regarding the developer’s past actions. There are differing opinions about the project’s future and the developer’s good intentions. One community member wrote;
“The BALD deployer, who initially pulled a rug pull on Base, is on the move again. Just burned millions of BALD. LP is not locked. It’s said to be Milky Way and a scammer.”
BASE Meme Coins
We all know the excitement that meme coins on the Solana network have triggered. The recent move by BALD Coin not only skyrocketed its price but also positively affected the prices of meme coins on the BASE network. If you recall, last year, these tokens created a significant hype for a short period.
TOSHI, MOCHI, SMUDCAT, DEGEN, and BRETT saw increases ranging from 8% to 154%. If this trend can be sustained even in the short term, we might see meme coins on the BASE network making ridiculously high gains.
Looking at the downside, despite the rise, meme coins on the BASE network still have modest market values compared to alternative network meme coins. This potential for high volatility should not overlook the lack of investors that would trigger speculative activity due to reasons such as the BASE network’s lesser popularity.
Meme coins, known for their viral appeal and often community-focused initiatives, are useless in the crypto market. Moreover, the BALD Coin developer, previously branded a scammer, is now clearly showcasing the risk with this move to polish the token.
