Solana-based WEN plummets despite 27% supply burn | CoinDesk JAPAN

WEN, a meme coin issued on the Solana blockchain, plummeted on the 29th. This comes as traders weigh the value of news that 27% of the airdropped token supply will be burned.

Wen’s plunge was caused by whale sellers who exited their positions just after 11 a.m. ET. At the time of writing, the stock is trading more than 30% below its high on the 29th.

The plunge occurred as part of a “sell on news” event related to the project’s decision to burn all unclaimed Wen during a three-day airdrop that ended on the 29th. Traders appear to have already priced in the impact of more than WEN 270 billion in reduced supply.

On the Discord server of Jupiter, the protocol that facilitated the airdrop, anonymous crypto traders were making comments licking each other’s wounds. A trader using the pseudonym Sonofkarm commented: “WEN burn has no effect on prices. Moon boy in the mud.”

WEN’s burn was the final undercard to the so-called “Jupuary” main event, a month of testing and preparation for Jupiter’s own big airdrop. Trading protocol Jupiter plans to distribute 40% of newly issued JUP to users on January 31st.

“WEN was a great test,” Jupiter’s anonymous co-founder Weremeow said on X (formerly Twitter) on the 29th, explaining that the launch was a stress test for the same infrastructure that will soon distribute JUP. .

However, Weremeow said the team made a “big blunder” when an engineer accidentally left 100 tokens for an airdrop in his account, and then improperly supplied the tokens to a trading pool. Stated. In the post, Weremeow said this unsanctioned activity was not an ethical issue, but “just incredibly stupid.”

｜Translation and editing: Rinan Hayashi
｜Image: wenwencoin.com, modified by CoinDesk
｜Original text: Solana’s WEN Token Plummets Despite Burning 27% of Supply