Slerf's $10 Million Memecoin Burn: Accidental Mishap or Deliberate Publicity Stunt?
Summary:
The Solana-based Slerf (SLERF) memecoin project encountered a $10 million mishap where 53,000 Solana (SOL) tokens were unintentionally burned. Some speculate the event was a deliberate publicity effort. Massive trading followed the incident, spiking token volumes over $2 billion. Gary Henderson, a Solana community developer, argued the burn could have been staged to garner interest. The Slerf developer refuted this, maintaining the burn was an unplanned error.
A mishap involving the Slerf (SLERF) memecoin, based on Solana, valued at $10 million may have been a savvy publicity manoeuvre, according to some spectators of the chaotic spectacle that took place on Monday. On March 18, the Slerf project's engineer drew considerable attention after apparently unintentionally obliterating a pre-sale allotment of 53,000 Solana (SOL) tokens earmarked for initial investors. Following the realization of his error, the Slerf engineer penned an expletive-laden post on X, soon after providing an explanation and a heartfelt apology in a separate post that followed 10 minutes later. As an outcome, trading volumes of the Slerf tokens skyrocketed to over $2 billion just after the apology.
Nevertheless, there's a degree of skepticism with several dubious transactions suggesting the alleged inadvertent burn event could have been deliberate to seize public interest — though the proof remains largely speculative. Gary Henderson, a Solana community engineer, purportedly suggested the Slerf burn was staged, highlighting an action in the Slerf creator's wallet which withdrew 1,050 SOL from the liquidity pool just prior to the liquidity being destroyed. Henderson advanced the notion that the Slerf developer repossessed his tokens before the burn.
This Slerf engineer countered, refuted the claim of deliberate action and clarified that he had “no intention” of burning the tokens. He further argued in a March 19 post to X, that his real intent was airdropping tokens. Laurence Day, creator of Wildcat, also proposed that the Slerf Liquid Pool burn was “almost certainly deliberate” to cultivate buzz around the project. He argued that a person ploughed $1.9 million into the liquidity pool soon after the burn and liquidated it for $5 million, suggesting that insiders might have capitalized on the pandemonium for profit.
Contrary to these claims, the Slerf engineer has repeatedly clarified that the burn occurrence was genuine and was an unintentional slip during the process of burning the liquidity pool using a tool known as the SOL incinerator. However, despite queries, Slerf remained silent as of the time of press.
Irrespective of whether the flawed launch was premeditated or coincidental, the project has garnered significant attention across social media and throughout the financial markets. At the time of publishing, Slerf has amassed over $3.2 billion in trading volumes over the past 24 hours and is now trading at $1.08 with a total market capitalization of $540 billion.
Noteworthily, there are no assurances that investors will actually receive a token from pre-sales, making this fundraising approach popular amongst fraudsters. Over the past 72 hours, Solana memecoin projects using pre-sales have managed to rake in well over $100 million.
Published At
3/19/2024 9:40:32 AM
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