The team behind the LAPTOP memecoin, launched by Hunter Biden, published an explanation for the token’s sharp crash on its debut day. According to the team, sniper bots and insufficient initial liquidity drove the surge in the token’s price. The project announced incentives for liquidity pools on Aerodrome and said it plans to burn part of the token supply.
Analysts at Bubblemaps described the first hours of trading as a “bloodbath” for LAPTOP holders. According to their estimates, around 80% of LAPTOP traders ended the day at a loss. Two traders lost between $100,000 and $1M, around 100 people lost between $10,000 and $100,000, and another 700 or so lost between $1,000 and $10,000.
The developers explained the mechanics of the crash as follows: the initial pool set the price at $0.05, demand for the token exceeded the market maker’s expectations, and limited liquidity could not absorb the price swings quickly enough. As a result, the token’s price surged sharply and then collapsed just as quickly. During the first hour of trading, the price climbed above $300, while the project’s market capitalization exceeded $110B at its peak. By midnight Thursday New York time, LAPTOP was trading at around $0.84.
The team pledged to allocate 4M LAPTOP tokens, or 0.4% of the total supply, to incentivize pools on the Aerodrome exchange. The goal is to bring available liquidity more in line with demand and prevent another sharp price swing.
Two events in the memecoin’s prediction-based tokenomics were resolved positively, so 10M tokens will be burned. This will reduce the circulating supply by around 1% during the first week after launch. Thirty percent of all LAPTOP tokens are tied to 30 predictions about real-world public events: a “yes” outcome leads to the corresponding share being burned, while a “no” outcome sends the tokens to charity.