The Wen Foundation announced Monday morning that the total supply of its Solana-based memecoin, which has a market capitalization of roughly $129 million, will decrease by about 25% following the end of its airdrop.
Crypto users who have in the past six months transacted on Jupiter, a Solana-based decentralized exchange swap aggregator, had a few days starting on Jan. 26 to claim WEN for free, with Monday being the last day for users to claim their allocation. According to the token’s creators, unclaimed tokens will be burned.
The price of WEN has dropped roughly 7% in the past hour to $0.0001283, per CoinGecko.
WEN’s total supply currently stands at 1 trillion tokens. WEN’s issuers allocated 70% of the total supply for the community airdrop. Data from on-chain analytics firm Flipside Crypto shows that crypto users have claimed over 428 billion tokens. This suggests that approximately 272 billion tokens, valued at around $35 million at current market prices, will be burned.
“Burning supply sometimes leads to prices increasing. However, it may just be a self-fulfilling prophecy. Memecoins have no real fundamentals,” wrote a Solana-DEX trader who received and sold his WEN airdrop. The trader, who asked to remain anonymous, added that “burning supply is a meme… As far as I know, there’s no announced utility for WEN (fee share, etc) so it’s just a meme.”
In an anticipated event, Jupiter will be airdropping its own JUP token at the end of January. WEN was meant to stress test the Solana network as the WEN airdrop was “a real-world test of our bot mitigation measures and our operational competence” wrote Jupiter’s pseudonymous founder who goes by the screenname “Meow” on X on Monday.