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Earlier today, the developer behind Slerf token, the latest meme coin on Solana (SOL), accidentally “burned” the project’s liquidity pool and airdrop tokens in what he described as a series of “misclicks.”
By “burning” SLERF worth millions of dollars, investors, hoping to make big money from the current meme coin mania sweeping Solana, have lost their hard-earned money and the chance of generating more from anticipated airdrops.
In crypto, any tokens that are “burned” are sent to an irrecoverable wallet. This means funds can never be recovered unless, in this case, Solana validators agree to “roll back” the chain and recoup lost funds.
Slerf Developer Accidentally Burns LP and Airdrop Tokens
In a post on X, the remorseful and anonymous developer of Slerf said the accident happened when he “was clearing out the shitcoins people sent to the wallet.” Unfortunately, in the process, he accidentally ” burned” the valuable LP and airdrop tokens with other coins.
Since liquidity provider tokens are crucial for facilitating trading on exchanges, their destruction significantly hampers the ability to trade SLERF.
Considering the current situation, whales, or early investors, cannot easily exit their positions because of the low liquidity now that SLERF LP tokens are out of commission. Some presale investors bought as much as 1,000 SOL worth of SLERF via a single address.
Meanwhile, with investors unable to receive airdrop tokens, interest in the project may gradually diminish.
SLERF Minting Millionaires: Will Prices Tank?
While this blunder is unfortunate, SLERF continues to mint millionaires from early adopters who exited when the market began trading.
According to CoinMarketCap data, SLERF soared to as high as $1 earlier today. It is down roughly 50%, changing hands at $0.48, and mostly stable when writing.
Earlier today, Lookonchain data revealed that a trader who spent 9,894 SOL, or roughly $1.98 million, to buy 69.74 million SLERF exited with 25,001 SOL, or approximately $5 million, within 12 minutes of the token trading. The trader earned $3 million in net profit.
SLERF has been listed in multiple exchanges. With the majority of SLERF CEX trading taking place on Gate.io. However, there is decent activity at Bitget and others.
Whether SLERF will dump going forward as DEX trading becomes a challenge remains to be seen. The developer says he’s “grinding” and wants to correct the error.
For now, SOL is firmly on an uptrend, benefiting from the surge in meme coin activity – SOL is trading at $198, up 34% in the past week.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
