In a shocking turn of events for crypto investors, the Solana-based meme coin project Slerf has encountered a gigantic mishap. It resulted in losses exceeding $10 million for the presale investors of Slerf owing to an accident caused by the project’s developer.

Solana’s Slerf Developer Reveals Shocking Update

The project’s developer recently took to X and confessed to accidentally burning a massive portion of the token supply. This includes Slerf assets designated for liquidity provision (LP) and airdrop distribution. The mishap unfolded after the Slerf project, identified by its account HdENn8…HgNAsF, managed to raise over 50,000 SOL and more than $10 million.

However, the developer revealed that he accidentally burned LP tokens and the entire reserve of the 500 million SLERF tokens for the airdrop. Furthermore, due to the revocation of minting rights, any efforts to recover the loss have been futile.

Expressing deep remorse and distress, the developer apologized for the irreparable damage caused. Despite efforts to rectify the situation, the inability to mint new tokens left pre-sale investors with no way of recovering their investments, neither through receiving tokens nor Solana refunds.

In an attempt to provide clarity and transparency, the Slerf team convened in an X Spaces session to address the community’s concerns. Team member Slorg conveyed profound dismay, admitting to feeling physically ill over the situation. “I’m lost for words,” they lamented, expressing uncertainty about the path forward.

Also Read: Solana (SOL) & BOME Prices To Hit Target Price, Or Reversal Ahead?

Is Ponzi Scheme Involved?

A Solana trader, whose identity remains undisclosed, dived into action by swapping 9,894 Solana (SOL) tokens, equivalent to approximately $1.98 million. He secured a hefty 69.74 million Slerf tokens as soon as the trading gates opened, according to a post by Lookonchain on X.

Capitalizing on a soaring market owing to the accidental burn, the investor swiftly offloaded their SLERF holdings for a staggering 25,001 SOL. The transaction translated to a whopping $5 million. Hence, he acquired $3.02 million in profits in just 12 minutes.

The above-mentioned incident gave rise to speculations regarding the ponzi scheme being involved. Moreover, the Slerf crypto soared over 800% today, further fuelling such concerns. On the other hand, Solana’s Book of Meme (BOME) crypto led to a Binance probe into insider trading allegations after unprecedented price surge.

Also Read: Binance Probes Into BOME Insider Trading, Offers $5M Rewards For Tips

The post Solana Meme Coin Slerf Presale Investors Incur $10M Loss, Here’s Why appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am