Memecoin Developer Accidentally Burns Liquidity Pool and Pre-Sale Tokens in Failed Launch
In a mishap during its launch today, the developer of Slerf memecoin unintentionally destroyed both the liquidity pool and the 500 million tokens allocated for pre-sale participants.
Despite successfully raising over $10 million during its pre-sale phase, the project encountered significant setbacks.
Over the weekend, Slerf was among the many Solana-based memecoins that attracted substantial investments from crypto enthusiasts through pre-sale initiatives. Notably, an unknown NFT artist known as Dekadente raised over $30 million worth of SOL in the pre-sale of a memecoin called Smole. Similarly, another NFT artist named Kero amassed over $10 million for their memecoin, NAP.
Crypto researcher 0xGumshoe disclosed that the Solana memecoin community collectively invested approximately $100 million in pre-sales. This frenzy propelled Solana decentralized exchange volumes to record highs, with the blockchain’s popularity on Google surpassing that of Ethereum.
Pre-sale, a process where investors send crypto to a designated wallet address in exchange for tokens once the token launches, has gained popularity. However, it does not guarantee token allocation.
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The surge in pre-sale popularity followed the unexpected success of The Book of Meme (BOME) coin, which saw a remarkable value increase of over 1,000%, leading to significant listings on exchanges like Binance. BOME currently boasts a fully diluted market capitalization of around $1 billion.
Despite its apparent success, Ethereum expert Anthony Sassano criticized the pre-sale model, labeling it a “bidding ponzi.” He cautioned against investing in “memecoin pre-sales” with a high likelihood of rug pulls.
Unfortunately, the uncertainty surrounding pre-sales has made them a target for fraudsters. On-chain crypto sleuth ZachXBT highlighted instances of “grifters” exploiting the community. One flagged account raised around 4,935.55 SOL, worth approximately $1 million, for an unreleased memecoin.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
