After "accidentally" burning $10 million worth of investor tokens, Slerf creator appeals for contributors.
Whales are flocking to Solana's DEXs, driving up volumes, thanks to the SLERF token burn.
As the initial donor, LBank will act as a trustee for the given monies.
After "accidentally burning" half of the token supply—including presale funds—the creator of the sloth-themed meme currency Slerf (SLERF) is requesting contributions from the crypto community. Many have linked this to the same frauds that plagued Ethereum's 2017 ICO boom, but SLERF seems to be attempting to alter the story by helping investors recoup their losses.
The pre-sale for meme coins raised $122 million.
Since the Bitcoin bull run, the crypto market has been rocked by meme currencies, which are tokens with no use and are used only for speculation. Investors are donating money to a project's address before it goes online, causing these meme currencies to flood the market via a contentious presale launch.
According to statistics from ZachXBT, the memecoin presales have generated almost $122 million so far since March 12. This demonstrates how popular these tokens are, which, despite the considerable risk, have the potential to quickly amass enormous riches for investors.
LERF's unintentional token loss
On Monday, SLERF's creator said that $10 million worth of presale coins were "accidentally burned," setting up a ferocious discussion in the broader crypto community. As a result of this move, half of the token supply—intended for investors who paid in funds—went missing from the network forever.
Due to the token's limited quantity, "whales" (those with deep pockets) started hoarding it in anticipation of its exchange debut, when they hoped to profit handsomely. Coingecko statistics shows that as a result, the two leading decentralized exchanges on Solana have surpassed Ethereum's Uniswap V3.
Birdeye data shows that SLERF is responsible for $3.3 billion of the total $5.4 billion volume of Raydium and Jupiter, the top two DEXs, with Jupiter accounting for $3.4 billion and Raydium for $1.4 billion.
With over one million transactions as of this writing, SLERF has seen a gain of more than 1,200% on Tuesday.
SLERF's strategy to recoup presale investments
Donors are being asked by SLERF to return investors' funds only hours after the inadvertent token burn. Despite widespread skepticism that the event is a hoax, its creator has been posting on X (the old Twitter) in an effort to collect all of the money that has gone missing.
As a custodian of the contribution address, LBank exchange has announced on its X account that it will contribute to the return. This will make sure that incidents like the token burn don't happen again.
One of the first cryptocurrency exchanges to launch SLERF, HTX Exchange (formerly Huobi), has also announced via its X account that it would provide all trading earnings from the token to reimburse presale investors. As of this writing, LBank said that it has received contributions totaling 1,400 SOL.
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