Hyped-Up Launch of Telegram Bot Token Ends in Disaster
A Telegram bot token called Banana Gun, which allowed users to participate in upcoming token launches, encountered a smart contract bug that led to the team dumping its treasury. The team has promised to relaunch the project and compensate affected participants through an airdrop.
The Functionality of Banana Gun
Banana Gun allowed users to bribe Ethereum validators to prioritize their transactions during token launches. Over the past three months, the bot gained significant traction and generated revenues of 500 ETH ($750,000).
The Plan for the Banana Token
The recently launched Banana token aimed to share revenue with holders, generated from the bot’s use and taxes on token transactions. The plan also included offering cashback to users and implementing token burns to offset supply increases.
A Token Launch Gone Wrong
The Banana Gun team sold 2 million tokens for 800 ETH ($1.2 million) in a presale. The token initially surged to $7 before reaching a peak at $8. However, the team disclosed a bug in the fee calculation, causing the transaction fee to bypass the team and token holders. To rectify the situation, the team sold tokens from its treasury wallet to reclaim liquidity and facilitate a new launch.
The Aftermath
The team sold treasury tokens through decentralized exchanges, resulting in a significant drop in the token’s value to $0.025. The team is now auditing a new token contract and plans to airdrop new tokens to previous holders. Traders who bought more tokens than they sold during the price crash will be refunded in ether.
Hot Take: Lessons Learned from the Banana Gun Disaster
The Banana Gun launch serves as a cautionary tale about the risks involved in token launches and the importance of thorough smart contract audits. It highlights the need for better security measures and stricter protocols to prevent bugs and vulnerabilities. The incident also underscores the significance of transparency and open communication with the community during times of crisis. While the team promises to come back stronger, it will be crucial for them to rebuild trust and demonstrate their commitment to resolving the issues faced. Overall, this incident serves as a reminder of the volatile nature of the crypto space and the need for diligence in project development and execution.
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