Solana-based memecoin Wen (WEN) investors were caught off guard when the cryptocurrency’s value declined sharply, despite the announcement of a massive token burn. The token burn was set to eliminate 27% of the total supply distributed via AirDrop, but contrary to expectations, WEN’s price plummeted.
Affected by a substantial sell-off attributed to a crypto whale, Wen’s price fell to its daily low of $0.0001218. At the time of reporting, the price had marginally recovered to $0.0001222, still 30% below the day’s peak. This drop occurred even though the memecoin announced a burn of all unclaimed tokens from the three-day AirDrop.
The price decline was a topic of intense discussion among anonymous crypto investors on Jupiter’s Discord server, which had facilitated the WEN AirDrop. Opinions were divided, with some expecting a quick recovery and others anticipating a continued downward trend.
Implications for Jupiter’s Upcoming AirDrop
The WEN token burn incident served as a precursor to “Jupuary,” a month-long event for Jupiter’s own major token AirDrop. Jupiter plans to distribute 40% of its JUP tokens to users on January 31, 2024, and the WEN AirDrop was considered a significant test for this upcoming event.
Weremeow, an anonymous co-founder of Jupiter, acknowledged the WEN AirDrop as a crucial stress test for their infrastructure. He also disclosed a mishap where 100 JUP tokens intended for the AirDrop were accidentally sent to an engineer’s wallet, which he described as a significant mistake rather than an ethical lapse.