WEN Token's Value Drops Despite 27% Supply Burn on Solana

• Unforeseen Price Drop For Wen Meme Coin
• Sell the News Event Impacts Wen Token Value
• Implications and Lessons from Wen Burn

Unforeseen Price Drop For Wen Meme Coin

On Monday, the Wen meme coin experienced a significant dip in price as traders grappled with understanding the implications of an announcement that 27% of the airdropped token's supply would be incinerated. The Solana$104 5.03%-based token was seen trading over 30% below its daily high at approximately that day's close of trading, largely attributed to a steep drop instigated by a large investor who sold their position shortly after 11:00 AM on the East Coast.

Sell the News Event Impacts Wen Token Value

This investor activity was part of a phenomena commonly referred to as sell the news, linked to the Wen project's decision to destroy all tokens that were not claimed during its three-day airdrop, which wrapped up on Monday. It seems that traders already had accounted for the influence of the supply reducing by over 270 billion tokens.

In the Discord server for Jupiter information" data-id="5052">Jupiter$0.0058 -4.87%, the protocol responsible for facilitating the airdrop, anonymous cryptocurrency traders were seen metaphorically licking their wounds. One user, who uses the pseudonym Sonofkarm, commented, Wen burn has no effect on price. Moonbois in the mud.

Implications and Lessons from Wen Burn

The Wen burn marked the intense final run-up to the primary event of what has been dubbed as Jupuary, a month dedicated to testing and preparation for Jupiter's own substantial token airdrop. The trade routing protocol plans to distribute 40% of its forthcoming JUP token to its users on January 31.

Commenting on the event, Jupiter's anonymous co-founder Weremeow expressed on X Monday that the event served as a valuable stress test for the same infrastructure that will soon distribute JUP. Weremeow noted however, that the team encountered one big mishap when they mistakenly left 100 tokens intended for airdrop in an engineer's account, who then improperly channelled the tokens to a trading pool. In his post, Weremeow clarified that the unsolicited activity was not an ethical concern, but rather, just incredible oversight.

Edited by Jonathan Stoker