Telegram Bot Banana Gun Token Price Dumps by 99% Within 1 Hour of Launch – Here’s the Reason Why
In a whirlwind turn of events on September 12th, the Telegram Bot Banana Gun project officially released its token, BANANA, and deployed a swap pool on Uniswap. This came after a highly successful pre-sale that garnered 800 ETH, equivalent to over $1.3 million, just the previous week. However, the project’s euphoria was short-lived as it encountered a smart contract issue, despite claiming to have undergone two separate audits.
Just one hour after the token’s release, the Banana Gun team announced a critical flaw in their smart contract, one that could not be swiftly rectified. This revelation was a significant setback, especially given the prior assurance of two successful audits.
In an effort to safeguard their project from potential malicious attacks, the Banana Gun team made the decision to drain the entire liquidity of WETH by dumping the BANANA token. They pledged to redeploy the token and use the recovered funds to replenish liquidity. Additionally, they committed to conducting a snapshot of LP holders before initiating an airdrop to compensate users for their losses. However, specific timelines for these actions were not disclosed, as the team requires additional time to verify the new smart contract.
The project’s tweet read:
Announcement
We have a bug in our contract we cannot hotfix.Despite two audits there is a bug in the contract with our taxes, which allows people to sell their bags while having tax tokens remaining in their wallet.
1. First step is to sell the treasury wallet to drain the LP…
— Banana Gun 🍌🔫 (@BananaGunBot) September 11, 2023
In the wake of this announcement, the BANANA token’s price plummeted from $8.7 to $0.02556. Some users on platform X, such as AzFlin, a former Uniswap employee known for exposing rug pulls, pointed out a potential programming error in Banana Gun’s smart contract. It appeared that the contract was failing to deduct the 4% selling fee for sellers, leading to an automatic inflation of the BANANA token supply.
Meanwhile, news of Banana Gun’s misfortune gave rise to the Telegram Bot – UniBot (UNIBOT) trend, which saw a rapid increase in value, soaring by as much as 20%. However, UNIBOT’s price soon retraced to its previous levels.
At the time of writing, UNIBOT was trading around $70, marking a significant drop from its all-time high of $220 in mid-August 2023, when investor interest was at its peak before shifting elsewhere.
Read more:
- Unibot Tokens From Telegram-Based Exchange Skyrocket 200x, Records With All-Time High
- Telegram Bot Trend’s Market Cap Surpasses The $150 Million Mark