- The Slerf project’s developer accidentally burned $10M in liquidity provider funds.
- Despite the loss, Slerf’s market value soared.
- Several factors made Slerf surge in price.
The memecoin mania is in full swing on the Solana blockchain, with projects including BONK, BOME, and others posting huge gains. Among these, the Slerf project has gained attention for all the wrong reasons.
Recently, the project’s developer made a catastrophic mistake, burning $10 million worth of token reserves allocated for liquidity providers during a presale. However, this error did not negatively affect the price for several reasons.
Slerf Surges to $1 Despite a Significant Error
On Monday, March 18, Solana-based memecoin Slerf revealed a major error on his part. In an attempt to do the “safest possible launch,” the developer accidentally burned 150,00 Solana, equivalent to $10 million, in the project’s liquidity pool.
Attributed to a “simple mindless misclick,” this error caused significant concern in the community, with some pointing to a “rug pull.” However, rather than hurt the token’s price, the error was followed by Slerf reaching its all-time high (ATH) of $1.36.
At its peak, Slerf briefly overtook Solana’s Book of Meme (BOME) token by market cap, becoming the eighth biggest memecoin. Following the peak, the price has since adjusted to $0.752, bringing its market cap down to $505 million.
Why Slerf Surged Despite the Burning Error
The surprising rise in Slerf’s market value, despite a significant mistake that destroyed a large number of its tokens, can be better understood by looking at two key factors. Firstly, there’s been a huge wave of enthusiasm for memecoins, which has boosted interest in Slerf even after the burn.
The other factor was the amount of attention that Slerf got after the error. The widespread coverage and discussion of the token was enough to get more eyes on it, and more people trading. This showcases just how much marketing and hype runs the memecoin space.
On the Flipside
- Solana’s blockchain has emerged as a preferred platform for developing and trading memecoins, thanks to its high throughput, low transaction fees, and robust ecosystem.
- Memecoins are highly volatile and can be subject to significant price swings based on social media trends, celebrity endorsements, or community-driven hype.
Why This Matters
The Slerf burn error showcases how accidents in the crypto space may not always hurt the token. The event showcases that attention is the most valuable currency in the memecoin space.
Read more about the Slerf burn incident:
Slerf Developer ‘Accidentally’ Burns $10M in Presale Funds
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