Telegram-based trading bot BANANA Token will be relaunched after miscoded taxes lead to unntended inflation.
The Banana Gun trading bot will be relaunching its token after a botched launch.
BANANA went live yesterday and surged to a $70 million market value in less than an hour - the token has since dropped to nearly zero after the team discovered a bug in the smart contract.
The team sold the BANANA tokens held in the project's treasury to drain the BANANA/ETH liquidity pool on Uniswap. Banana Gun said in a statement that it has taken a snapshot of affected users and plans to compensate them.
Banana Gun is a trading bot that shares the revenue generated by Banana Gun, a Telegram-based trading bot. Crypto's bright spots this year have included a range of bots that have made their mark on the market.
The launch of BANANA was spoiled by a Bugzilla rollout of a 4% fees for transfer transactions.
Of the fee paid, 2% is supposed to go to other BANANA holders, 1% to the team and 1% to the project's treasury. The team miscoded the token so that the tax would accrue as designed, but another 4% of tokens would also be minted and sent to the person who initiated the transfer. The supply of BANANA was set to increase every time anyone transferred the token.
The incident has sucked the life out of a promising project in a hot subsector of the digital asset space, according to Banana Gun, according to a Dune Analytics dashboard. Also recently, the trading bot industry has passed 100,000 users.
Now, instead of a successful token launch, the team is dealing with widespread community backlash, with many questioning how the audit missed such a critical bug.
The problem doesn't appear to have soured the market for Telegram bots - UNIBOT, a competing Telegram bot, has surged nearly 15% in the past 24 hours as traders place their bets elsewhere. With Unibot, Unibot assists just under a quarter of bot trades.
Banana Gun raised 800 ETH (roughly $1.2M) through its pre-sale. According to a self-described analyst, 800 wallets received presale allocations from BANANA, according to the dealer, a self-described analyst.
The dealer said that around 500 of the 800 wallets sold within the first hour, netting a cool 10,000% profit.