Last Updated on September 12, 2023 by Bitfinsider

Yesterday’s much anticipated debut of a Telegram bot coin was derailed by the team’s decision to dump their treasury due to a smart contract problem. For those who were impacted, the team has vowed to relaunch with an airdrop.

With the help of the Banana Gun Telegram bot, users may snipe impending token launches. In order to get these sniping transactions prioritised over others, Ethereum validators must be bought off.

According to the team, the bot made 500 ETH ($750,000) in revenue in the last three months after gaining a lot of popularity.

The Banana token was just introduced with the goal of facilitating revenue sharing between holders. This money would come from taxes on token sales and purchases as well as from the bot’s real usage. The plan also called for token burns to help balance possible increases in supply and compensation to users who traded tokens using the bot.

At a presale price of $0.65 per token, the Banana Gun team raised 800 ETH ($1.2 million) on September 8. Approximately 800 wallets took part. The inability to prevent whitelisted applicants from utilising multiple wallets to claim multiple allocations during the presale was corrected after the fact.

The September 11 token launch took place. According to Dexscreener, it first spiked up to a value of $7 before peaking at $8.

This spike, however, was just temporary; it lasted for about an hour until the team revealed a serious problem with the token’s smart contract’s fee computation. This flaw prevented the 4% transaction fee from going to the protocol’s treasury as planned; instead, it would stay in the wallet of the person making the transaction, avoiding the team and the holders of Banana tokens.

The company decided to sell the tokens from its Treasury wallet in order to recover liquidity and enable a new launch as a result of this shocking discovery.

“First step is to sell the treasury wallet to drain the LP (which is locked) so we can reuse it for the new contract. Secondly, we will relaunch ASAP with an airdrop so everyone will be made whole,” the team posted on Telegram.

The project treasury received 6.38 million tokens, or 63.8% of the total token supply, which made up the bulk of the tokens in the project.

In order to ensure sufficient liquidity on decentralised exchanges, the project reserved $325,000 in wrapped ether (WETH) and 500,000 Banana tokens for the launch.

With the goal of recouping the $325,000 that was first invested in WETH liquidity, the team chose to sell its Treasury tokens on decentralised exchanges. The token’s value fell precipitously as a result of this action, reaching just $0.025.

“Understand you guys are mad, it sucks. We had a great launch and this ruined it,” the team said on Telegram. “Just know we are here, we are going to figure it out and come back stronger,” the team said.

The team then announced that it will airdrop the new tokens to all former holders who sold their tokens after the flaw was discovered, and that it is having its new token contract examined. The team promised to reimburse traders in ether if they had purchased more than they had sold during the token’s price collapse.