WEN Falls 22% Despite Burning of Unclaimed WEN
WEN Memecoin has fallen 22% in 24 hours despite burns of over $40 million worth of WEN tokens. What is next for the memecoin?
Uno…
Over 40% of Solana-based memecoin WEN went unclaimed. The high number of unclaimed tokens is positive news for holders as they were burned. However, the burns today failed to have the desired effect, with the token falling 22% in the last 24 hours, according to CoinMarketCap.
WEN memecoin only started trading on January 26. But it has already been on a rollercoaster regarding price with volatility. The token reached an all-time high of $0.00018078 on January 29 before plunging.
The decline was mostly due to a whale selling off their WEN holdings in reaction to the news of a 27% burn. Many of those who claimed WEN have been expecting the burn to trigger a price rally, but the holders were left disappointed.
Meanwhile, some traders still managed to make thousands. One trader bought 20 billion WEN tokens when it launched for $125,500 and sold for $ 12.6 billion for $807,000. The trader is still holding 7.6 billion WEN worth over $900k
What is WEN
WEN is a meme coin of the Solana ecosystem. It is a fractionalized NFT memecoin project for active Solana wallets via the Jupiter LFG launchpad. The Jupiter team created the project as part of its Jupuary movement. Besides being a memecoin for the general Solana community, it also served as a dry run for the upcoming JUP airdrop.
According to the website, Weremeow's poem "A love letter to Wen Bros" was split into 1 trillion pieces, each of which is a WEN token. Thus, the memecoin had a total supply of 1 trillion.
70% of the supply went to those who used Jupiter in the last six months, Saga phone owners, and other community members. 20% was in liquidity pools, and 10% was for treasury. With over a million wallets eligible, each wallet claimed 645,652 tokens.
Unclaimed WEN Could Be Positive
However, not everyone claimed the tokens. Per Dune Analytics data, 39.5% of WEN supply was unclaimed. This is around 276.5 million of the circulating supply. Unclaimed tokens got burned after the claim deadline expired and according to on-chain data, the unclaimed WEN worth about $40 million has now been burned.
The burn represents good news for those still holding the memecoin because it could boost the token's price. It also confirms that the team is committed to the long term potential of the token.
Jupiter Trading Volume
Meanwhile, Jupiter's trading volume flipped that of Uniswap on January 28 as the Dex recorded over $480 million in just 24 hours. The volume came from WEN trading and Stablecoin swaps.
Jupiter has been the biggest beneficiary of Solana DeFi's resurgence and will count on that when it airdrops its JUP tokens on January 31. JUP is now trading around $0.61 in pre market trading.
