WEN Token Plunges 23% After Airdrop: $35M Burned

The world of meme coins never sleeps, and the recent launch of Solana’s WEN token is a prime example. After a whirlwind few days, the initial airdrop concluded, leaving traders reeling from a price dip and a massive token burn. Let’s dive into the details of what happened with WEN and what it means for the Solana ecosystem.

WEN Airdrop Aftermath: Price Plunge and Token Burn

• Traders witnessed approximately a 23% drop in WEN’s price shortly after the airdrop campaign concluded.
• A significant $35 million worth of WEN tokens were burned.

The WEN token’s launch on Solana grabbed headlines, but the airdrop’s end on Monday marked a turning point. Unclaimed tokens, totaling hundreds of billions, were burned, significantly reducing the overall supply.

Holders who either claimed their airdropped tokens or purchased them on exchanges started selling off their holdings en masse once the claim period ended. This sell-off triggered a price decline after a weekend that saw considerable gains, peaking early Monday.

According to Coinstats, the token price experienced a 22% drop in just one hour on Monday morning. This sharp decline coincided with the project creators burning over 271 billion tokens, valued at $35 million at the time.

This burn represented over 27% of the total token supply and nearly 39% of the airdrop allocation that went unclaimed.

See Also: Solana (SOL) Gets More Signups As WEN Token Airdrop Draws Close

The WEN airdrop claim period concluded as planned on Monday at 10 am ET. Any tokens not claimed by eligible Solana users were permanently removed from circulation.

Token Burning: A Double-Edged Sword?

Burning tokens is often considered a strategy to boost price by reducing the circulating supply. However, in WEN’s case, the price has fluctuated wildly due to the token burn and significant selling pressure from WEN holders amidst market volatility.

Currently priced at $0.0001398, WEN’s price is relatively stable compared to its launch on Friday. However, it’s down 23% from its all-time high of $0.0001808 reached early Monday morning.

Solana’s Broader Gains

Amidst the WEN frenzy and an increase in Solana DeFi trading volume ahead of the Jupiter (JUP) token airdrop on Wednesday, the price of SOL has risen by nearly 8%, exceeding $101.

Key Takeaways

• Meme coin markets are highly volatile and subject to rapid price swings.
• Token burns don’t always guarantee price increases, especially when faced with significant selling pressure.
• Airdrops can drive initial excitement and trading volume but may lead to price corrections after the claim period ends.