The value of WEN Token experienced a significant decline, for traders weighed the burning of 27% of its supply.
The Solana-based token fell by over 30% from its daily high following a substantial sell-off by a whale investor. This sell-off occurred shortly after 11:00 AM on the East Coast, contributing to what appeared to be a “sell the news” event tied to the Wen project’s decision to burn all unclaimed tokens from its recent three-day airdrop, which concluded on Monday.
Despite expectations, the burning of over 270 billion tokens did not seem to positively impact the token’s price, as evidenced by the reactions of traders in the Jupiter Discord server. Some expressed disappointment, suggesting that the burn had little effect on the token’s value:
“Wen burn has no effect on price. Moonbois in the mud,” wrote one who went by the name Sonofkarm.
The burning of Wen tokens marked the conclusion of a fast-paced period leading up to Jupiter’s major token airdrop event, dubbed “Jupuary.” This initiative served as a testing ground for Jupiter’s infrastructure ahead of the 40% distribution of its own JUP token, scheduled for January 31.
Jupiter’s co-founder, known pseudonymously as Weremeow, acknowledged that the Wen launch provided valuable insights and stress-tested the system for the impending JUP distribution. However, Weremeow also admitted to a significant error, revealing that 100 tokens intended for airdrop were mistakenly transferred to an engineer’s account and subsequently supplied to a trading pool. While Weremeow clarified that this was not an intentional ethical breach, they described it as a regrettable mistake.