Meme Tokens has been one the most successful categories in the Solana Ecosystem with its price rising rapidly at a pace of 1 to 10 times the launch price giving investors huge profit in a short amount of time.
The market capitalisation of these Solana meme projects has also risen significantly, ranking fifth overall compared to other categories in the crypto space.
Sadly there was an incident that one of these meme projects experienced where the developer lost $10.4 Million worth of SOL due to uncareful behaviour when rearranging the project’s wallet.
Solana Developer Lost $10 Million
The project that experienced this incident is called Slerf, a new meme project on the Solana Ecosystem.
Slerf itself was just launched yesterday and the token has been volatile ever since, according to data from CoinGecko.
The incident happened before the launch, where the developer of the project wanted to rearrange the project’s wallet to allocate some of the tokens for airdrop.
But after accidentally being careless and burning some tokens, it turns out that the developers burnt some amount of tokens that was planned to be allocated towards the airdrop of this project.
It is speculated that the overall value of SOL burnt was around $10.4 Million, but others estimated that the token amount was around 52,000 SOL which could be worth more than $10 Million based on the price fluctuation of SOL.
The sad thing about this is that the burnt cryptocurrencies were still in the form of SOL which could be allocated towards future liquidity or treasury for the project since the price of SOL can go up more in the future.
The developer did not say much more after this, but the incident might be one of the most genius marketing tricks ever.
This is because after the announcement of the incident, the developer decided to launch its token and the token immediately attracted a lot of investors.
Currently the market capitalisation of SLERF stands around $500 Million, which is impressive for a meme token to achieve that in less than a day.
What Can We Learn from This?
So what can we learn from this? As a project owner, you can see this as either a totally reckless move or a genius move.
Of course the incident shows how careless meme project developers are, but at the same time it shows that there is no bad publicity as long its publicity.
The news of the accidental burnt should have lowered investors and traders interest towards the project, because it shows how the project is not managed well enough.
But, the opposite thing happened where the token immediately got put on the map and attracted many investors where the market capitalisation of the token reached more than $500 Million in less than a day.
Overall, this incident can be a good story to see how volatile and how random the meme sector can be as not every logical result will happen in this space.
If you are planning to dive deep into the meme sector, especially the Solana meme sector, always remember to be careful and make sure that you have a special allocation of capital to “gamble” in this sector.
Also remember that not every meme tokens or coins will yield positive results as the price might go down immediately after you buy, which can bring your initial capital to zero.
The most important thing to keep in mind is to always have a strategy and a risk management plan especially in the meme sector because the volatility is always high, as all low market capitalisation of assets do.
