Investors of the Solana-based memecoin Wen (WEN) were contemplating how the news of burning 27% of the token supply released via AirDrop would affect them, but things did not go as expected. Despite the major token burn announcement, the price of WEN fell sharply, surprising the memecoin’s investors.
Despite Major Token Burn Announcement, Altcoin’s Price Drops
The Solana-based memecoin Wen experienced a significant price drop to its lowest level of the day at $0.0001218, triggered by a sale from a cryptocurrency whale. At the time of writing, WEN was trading at $0.0001222, 30% below the day’s highest level.
This action came despite Wen’s announcement that it would burn all unclaimed tokens during the three-day AirDrop ending today, part of the “buy the rumor, sell the news” phenomenon. Apparently, investors had already priced in the impact of the supply reduction of over 270 billion tokens.
Conversations among anonymous cryptocurrency investors on Jupiter’s Discord server, which facilitated the WEN AirDrop, drew attention. While some investors believed the downturn would soon end and an upward trend would begin, many more believed the decline would continue.
“The WEN AirDrop Was a Great Test for Jupiter”
On the other hand, Wen’s token burn provided a rapid entry into the main event called “Jupuary,” a month-long test and preparation period for Jupiter’s own major token AirDrop. The trade routing protocol will distribute 40% of its JUP tokens to users on January 31, 2024.
Weremeow, an anonymous co-founder of Jupiter, recently stated from his personal X account that “The WEN AirDrop was a great test for Jupiter,” indicating that the AirDrop was an important stress test for the upcoming launch using the same infrastructure.
Moreover, Weremeow mentioned that the team accidentally transferred 100 JUP tokens marked for AirDrop to an engineer’s wallet address, calling it a significant mistake. The Jupiter co-founder then emphasized that transferring the tokens to a trading pool inappropriately was not an ethical issue but simply the result of incredible foolishness.
