Solana Memecoin Slerf Burns $10 Million In Presale Funds: A Novel Case Study

Key Points:

• The Solana memecoin Slerf burned $10 million in presale funds from participants.
• Despite the loss, the price of SLERF increased dramatically, with the market cap reaching over $400 million.

After the Solana memecoin Slerf burned accidentally, causing a $10M loss, the price of SLERF surged by 242%. Despite the mistake, it reached a $400M market cap.

The Solana-based memecoin, Slerf, is facing a crisis after the developer accidentally burnt a major part of the token supply, resulting in a $10 million loss for presale participants. The developer, regretful and unable to rectify the error due to revoked mint authority, acknowledged the mistake publicly.

Solana Memecoin Slerf Burn: Will Slerf Compensate Investors?

The Slerf team further discussed the situation, expressing their shock and confusion. One member even referred to the project as a “side quest,” prompting a participant to comment on the absurdity of losing $10 million in such a manner.

Despite the mishap, the price of SLERF saw a dramatic increase of about 240%, with one trader making over $3 million in a short span of 12 minutes. Some participants suggested shooting for a $1 billion valuation.

The incident occurred in the wake of a weekend filled with Solana-based memecoin presales, where random projects received significant funding, often in the millions.

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How Did Slerf Accidentally Burn $10 Million in Presale Funds?

Originally, the developer raised $10 million (53k SOL) promising to add 100% of the SOL and 50% of SLERF to the liquidity pool, with the remaining 50% of SLERF to be airdropped to presale participants.

However, the developer accidentally burnt both the liquidity pool and the airdrop tokens, leaving no more tokens for minting as a refund.

The unfortunate event resulted in a total loss for those who deposited SOL for presale. The only way to obtain tokens was to buy them on the market, leading to a surge in SLERF’s value.

Market Reaction: Significant Price Increase Despite Crisis

Given the situation, quick-acting individuals began purchasing in anticipation of a price increase to recuperate their capital.

Other Degen players who understood the situation also joined in, creating high demand and causing the SLERF chart to surge. Since its listing, it has increased 15x, reaching a market cap of over $400 Million and a volume of $600 Million.