The launch of the Telegram bot token by the Banana Gun team turned into a major disappointment due to a bug in the token contract. On September 8th, the Banana Gun team initially seemed successful as they sold 2 million tokens at a price of $0.65 each for 800 ETH (1.2 million dollars) in a private presale. However, within three hours after the token launch, the price of BANANA plummeted by more than 99%, dropping from $8.70 to $0.02.
Smart Contract Bug Discovered
The reason for this sudden drop in the token’s value was attributed to a bug in the token’s smart contract. The team realized that this bug resulted in transaction fees going to the user’s wallet instead of being directed to the protocol’s treasury. However, they made a tough decision to rectify this error and relaunch the token.
Team Decides to Sell Tokens in the Treasury Wallet
In order to empty the treasury and facilitate a fresh start, the team decided to sell the tokens in the treasury wallet. This move significantly devalued the token, and BANANA dropped to $0.02.
“We took the first step of emptying the treasury and then reactivating it by doing an airdrop to those affected by this incident.”Banana Gun Team
Promise of a Fresh Start
Additionally, the team assured that the new token contract had been audited, and the bug had been fixed. Furthermore, they announced that they would distribute the new tokens directly to all previous token holders who had sold their tokens and refund the affected investors in Ethereum due to the decrease in token price.
“Understand, you are angry, it’s a terrible thing. We had a great launch, and this ruined it. We are here to fix this, and we will come back stronger.”Banana Gun Team