HumidiFi, the automated market maker, med with unusual buying activity during its WET token sale event. After the allocated tokens were sold, the team noted that most of the buying came from a bot farm, automating the purchases to end the event within minutes.
HumidiFi launched its WET token, hoping for a fair distribution. Instead, the team noticed most of the tokens were sniped by a bot farm with specially funded wallets.
The presale lasted only a few seconds, front-running all other eligible wallets. HumidiFi used Jupiter’s platform for the IDO, splitting the buyers into three eligible groups. However, this did not prevent a network of connected wallets to immediately connect to the smart contract and snipe all available tokens.
The market maker, which added to the overall DEX volume on Solana, also noted that the sniping of WET may have gone to one single whale, defeating the plans for a democratic distribution.
“For the public sale, a bot farm sniped the entire supply instantly and weterans were not able to participate,” explained the team through its X account.
The token sale failed to reward previous point farmers and DeFi veterans on Solana. As a result, the HumidiFi team decided to launch a new token and discontinue the current version of WET. The presale will launch with a new token smart contract, allowing previous Solana DeFi users to claim the new asset.
HumidiFi will launch new WET token after a repeated presale
In total, the event was counted as successful, raising $1.39M in USDC, for a valuation of $69M at the initial presale price. The IDO was held in three stages, distributing one tranche of 60M tokens and two additional presales of 20M tokens, one for Jupiter stakers and one for a public presale.
Whoever acquired the token in the initial sniping, may be left with a worthless asset. The HumidiFi team has not mention a refund for the deposits. The WET presale used Jupiter’s platform, which did not put up sufficient account filtering and bot defenses.
WET caused significant hype, rising to $0.25 in pre-market trading. The premarket price then sank to $0.15, with much lower volumes.
Since WET was supposed to be unlocked immediately, the initial trading may have led to a further price drop. The tokens were preparing for a launch on Meteora, as well as the MEXC centralized exchange.
WET tokens had to be distributed on December 9, but the new situation may delay the token generation event. Since the token was not created yet, there is no danger of competing assets with the same ticker.
HumidiFi offers access to dark liquidity pools
HumidiFi is different from other Solana DEX, as it offers access to dark liquidity pools. The exchange’s volumes and liquidity are not transparent, and the exchange has not published its fees.
The HumidiFi approach aims to prevent sniping and front-running orders, which is one of the biggest problems for retail on Solana.
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