In the latest episode of “The Market Report,” analyst and writer Marcel Pechman discusses the BALD token rug pull and the allegations pointing toward FTX founder Sam “SBF’ Bankman-Fried as the culprit. The token launched on Coinbase’s Base network, which is currently under development, and witnessed incredible gains between July 30 and 31.
Pechman notes that it is impossible to know how much fake volume and how many trades involving the same entity or small groups were used to prop up BALD’s price on decentralized exchanges (DEXs). Further evidence for this hypothesis is the 85% price plunge shortly after BALD’s developer removed the liquidity deposited in DEX pools.
According to internet sleuths, the evidence pointing to SBF being the mastermind of the rug pull includes funding from wallets associated with FTX and Alameda Research, the fact that BALD’s developer was one of the first voters on proposals for decentralized finance project SushiSwap, language used in tweets, and DYDX farming activity.
While Pechman believes SBF certainly has the technical knowledge to issue tokens and offering liquidity pools on DEXs, there is no way to know what sort of devices and internet access he currently has while under house arrest.
Now, on to the show’s next topic: Pechman explores why the U.S. Dollar Index’s recent gains from a one-year low could be the leading cause for Bitcoin’s (BTC) drop below $29,000. For Pechman, this illustrates investors’ confidence in a soft landing by the United States Federal Reserve, meaning the recession will be mild.
Want to know if Pechman thinks the U.S. government will be able to roll over and issue new debt in the second half of 2023 and what the consequences will be for Bitcoin’s price? Get answers to those answers on the latest episode of The Market Report, which runs exclusively on the new Cointelegraph Markets & Research YouTube channel.
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