Crypto Analyzer

Accidental Token Burn by Solana Memecoin SLERF Causes Uproar Among Investors

A recent mistake by the team behind the Solana-based memecoin SLERF has resulted in the accidental burning of $10 million worth of tokens, leading to discontent among early backers.

According to a post on Twitter by the project’s X account, the LP and tokens designated for an airdrop to early supporters were burned, with no possibility of being minted again. The team expressed apologies for the error, acknowledging the irreversible nature of the mistake.

Despite the unfavorable news causing a 60% drop, the SLERF token has surged nearly 2,000% in the past 24 hours, boasting a market capitalization of $250 million. Trading volume for the token has exceeded $2 billion, as reported by Dexscreener.

This incident highlights the frenzied environment of memecoins, with some investors speculating that the mishap could potentially drive the token to even higher prices. The mishap also led to humor within the community, joking that Solana has turned deflationary due to the 53,000 SOL removed from circulation. Additionally, crypto tax platform TokenTax pointed out that the accidental loss of $10 million is considered a taxable event.

The SLERF team has actively engaged with the community on social media, addressing concerns and offering apologies to affected investors. The responsible developer mentioned that they are no longer leading the project but are working on a solution to possibly refund some of the lost funds.

Meanwhile, Solana, the favored blockchain for memecoin trading, has been experiencing significant growth, surpassing $200 and climbing to new heights. Solana recently surged past BNB to secure the 4th position on Coingecko in terms of market cap.

While the accidental token burn caused turmoil within the SLERF community, it also sheds light on the volatile nature of memecoins and the importance of diligence in token management and development.