On Monday, the price of the WEN meme coin, which operates on the Solana blockchain, took a big hit, falling by more than 30% from its peak for the day.
This sudden drop was caused by a large seller, often referred to as a “whale,” who sold off a considerable amount of their holdings shortly after 11:00 AM on the East Coast.
Wen Project’s “Sell the News” Event
The recent price movement of the Wen meme coin was primarily triggered by a “sell the news” event related to the project’s decision to burn 27% of the tokens distributed through an airdrop. The project chose to burn all tokens that remained unclaimed during its three-day airdrop, which concluded on Monday. Traders had already anticipated the impact of the reduction in token supply, leading the token to trade below its daily peak.
Pseudonymous crypto traders on the Discord server for Jupiter, the protocol facilitating the airdrop, expressed disappointment. One user, known as Sonofkarm, commented, “Wen burn has no effect on price. Moonbois in the mud.”
The burn of Wen tokens marked the conclusion of the prelude to “Jupuary,” a month dedicated to testing and preparation for Jupiter’s upcoming massive token airdrop. Jupiter, a trade routing protocol, plans to distribute 40% of its forthcoming JUP token to users on January 31.
Reflection on Wen Launch and Supply Oversight
Reflecting on the Wen launch, Jupiter’s pseudonymous co-founder, Weremeow, praised it as a fantastic test for the infrastructure set to distribute JUP tokens. However, Weremeow admitted to a significant oversight, labeling it as “one big mistake.” The team accidentally left 100 tokens designated for airdrop in an engineer’s account, causing an improper supply of these tokens to a trading pool. Weremeow clarified that this incident was not due to ethical issues but rather sheer “incredible dumbness.”
Current Price Movements: As of the latest update, the WEN token is trading at $0.0001321, experiencing a 6.84% decrease over the past day. In contrast, Solana’s native cryptocurrency, SOL, is priced at $102.48, reflecting a 5.43% increase in the last 24 hours. Despite anticipation surrounding the token burn event, traders seemed unimpressed, contributing to the significant price drop.
Impact of Token Burn Event: The decision to burn a substantial portion of the token supply aimed to manage circulating WEN tokens effectively. However, the combination of the “sell the news” phenomenon and a whale seller’s exit created a perfect storm, leading to the sharp decline in WEN’s value.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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