Siqi Chen, the creator of the MIRA memecoin, has publicly apologized following the launch of a controversial test token, ZERO, which led to significant losses for traders despite clear warnings that the token was designed to lose value.
Chen stated that he created ZERO on the Solana-based meme coin platform, pump.fun, as an experiment to study investor behaviour. The token’s description explicitly stated that its value would drop to zero, noting: “It does nothing and never will. It is worth zero.”
However, investors, including a whale who purchased $208,900 worth of ZERO, ignored the warning.
According to DEX Screener, ZERO surged by 178% since its launch on December 30, achieving a trading volume of $32 million and a market cap exceeding $710,000. However, within hours, the token’s value dropped nearly 70% before a slight recovery of 15%.
Chen admitted he was unprepared for the memecoin’s popularity, expressing surprise that investors bought in despite the explicit warning. He disclosed that he sold 40% of the supply for 444 SOL but later repurchased and burned the tokens.
Acknowledging the controversy, Chen vowed to reimburse all affected wallets using his personal funds, which are distinct from the MIRA wallet. He also plans to organize airdrops to compensate victims.
Notably, MIRA’s value appears to be affected by this ZERO controversy, as it lost over 20% of its value in the past 24 hours. It now trades at $0.015, with a market cap of $15 million, according to data from DEX Screener.
Chen is known for his work with the MIRA memecoin, created to fund research for his daughter, Mira, who has a rare brain tumour. Reflecting on the situation, Chen emphasized the broader potential of blockchain technology,
“For those who say crypto has no legitimate use cases, funding rare disease research is a pretty legitimate one.”
Meanwhile, this controversy follows a similar incident involving Mark Longo, the owner of the internet-famous Peanut the Squirrel and the inspiration for the viral memecoin $PNUT. Longo launched a new memecoin, $JUSTICE, claiming that the creators of the $PNUT exploited his pet’s story for profit without his consent.
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