Due to a “simple mindless misclick” a new Solana-based meme coin is suffering a huge loss after their developer ‘accidentally’ burnt funds raised from early project adopters. As early project contributors were awaiting an airdrop they were hit with devastating news through the token’s official X account, from an anonymous developer.
Screenshot of Slerf’s post on X
SLERF aimed to release the airdrops after launch. However, this plan was delayed due to congestion experienced by the Solana network. On Monday, the team stated that they were planning to use a large wallet containing 50% SLERF total supply to serve as the creator wallet for presale contributors while funding the eligible airdrop wallets 10% at a time. Unfortunately, this may not happen as the project is facing a huge backlash, which even they stated could be impossible to fix at the moment.
How Did It Happen?
Moments after applauding the “safest possible launch” of SLERF on March 18th, the project developer shocked many with the tweets that followed.
Guys I fucked up. I burned the LP and the tokens that were set aside for the airdrop. Mint authority is already revoked so I can not mint them. There is nothing I can do to fix this. I am so fucking sorry, the developer wrote in one of the tweets.
The developer said that he had initially tried to burn the launch pool (LP) coins using Solana tools ‘vercel’ but it failed. So he went ahead to try another Solana tool ‘incen’ to clear out all the shitcoins people had sent to the wallet. Accidentally he cleared the wallet, burning every token in it inclusive of the presale funds tokens and a pile of other coins.
The irreversible vandalism brought a concussive hit to the entire crypto market but rapidly bore a positive outcome.
Success in the Midst of Crisis
Despite the misfortune, SLERF token recorded a significant rise in price which saw it make an intraday jump of more than 300% to reach its current all-time- high. This price action attracted various crypto whales to enter the market.
One notable whale as reported by Lookonchain made a significant gain of more than $3 million in a span of 12 minutes. After the incident this trader stormed the market with around 9,894 SOL and used them to purchase SLERF. He then quickly sold the meme coin for 25k SOL, gaining a huge profit within a short period of time.
As of the press time, SLERF is trading at $0.4862 with a trading volume of $257,067,249 in the last 24 hours and a market capitalization of $241,832,543 and is ranked #291 on CoinGecko.
Despite the shocking mishap where the developer unintentionally burned a significant portion of presale funds, SLERF’s price has remarkably surged. This unexpected outcome underscores the volatile and often unpredictable nature of the cryptocurrency market, especially meme coins. Currently trading at $1.01, SLERF exhibits a 53.41% increase in the last 24 hours. Technical analysis would likely focus on the rapid price spike, attempting to identify support and resistance levels that may dictate future price action. The burning incident, while damaging to investor confidence, has paradoxically become a major catalyst for short-term trading activity, as evidenced by whales entering the market.
Solana Meme Coin Craze!
While the Solana ecosystem has been reeling from the March 18th SLERF misfortune, it has also experienced a significant rally in both token price, market capitalization, and adoption.
Recent data released on March 16 by the fashion show indicated that Solana’s total transaction volume had surpassed Ethereum, reaching $ 3.52 billion with volume on the Ethereum network exceeding more than $ 1.1 billion. This significant rise in adoption of the network has been attributed to various factors such as- the rise in market capitalization of its based meme coins to more than $6.8 billion, an increase to more than $4.1 billion in Total Value Locked (TVL) and nearly $3 billion in stablecoins market cap, data from DefiLlama.
The significant growth in the Solana ecosystem has seen the native token also surge. According to CoinGecko data, SOL is currently trading at $203, with a market capitalization of 90.4 billion which is higher than the previous highest market capitalization of $76.5 billion, recorded on November 7, 2021, during the bull run.
Surrounded by such developments, Solana has been on an unrelenting trend since September 2023. This indicates the token’s undying rally towards reaching and surpassing its all-time high (ATH) of approximately $260, which seems to be just miles away.
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