Banana Gun Token Price Tanks 99% Hours after Launch – A ‘Rug Pull’ Scam?

Key Takeaways:

• Banana Gun token flopped to practically zero within minutes.
• The early investors claim the project rugged them.
• The Banana team blames a “bug” in the contract and promises to reimburse lost funds with ETH.

YEREVAN (CoinChapter.com) — Banana Gun, the latest Telegram bot-enabled trading scene addition, launched its same-name token on Sep. 11. The team posted their contract address and the link to claim the presale bag.

However, merely hours after the announcement, the BANANA coin tanked over 99% within minutes, going from $5.92 at 19:58 GMT to $0.04 at 20:01 GMT, flatlining ever since.

Many early investors on X.com (former Twitter) referred to the coin as the “Banana Gun scam token,” implying that the project was a rag pull, i.e., the deployers loured traders in and took off with their money once the coin went live.

Did Banana Gun ‘Rug Pull’ early investors?

Team members deny Banana Gun rugged anyone and claim that the project underwent two audits before going live.

“We have a bug in our contract we cannot hotfix. Despite two audits, there is a bug in the contract with our taxes, which allows people to sell their bags while having tax tokens remaining in their wallet,”

tweeted the team after the Banana Gun live price avalanche.

1. First step is to sell the treasury wallet to drain the LP (which is locked) so we can reuse it for the new contract 2. Secondly, we will relaunch ASAP with an airdrop so everyone will be made whole. We will update you as soon as possible.

added the Banana coin team.

The team did NOT disclose the results of the “two audits” and did not directly answer WHY those two audits did not find the bug pre-launch. Thus, some enthusiasts tasked ChatGPT with finding it and succeeded.

Investors To Remain Wary?

The Banana Gun team continued to suggest “ways forward, ” calling the situation “sh*tty.” They claimed that the new contract is also in the process of a fresh audit.

We will take a snapshot (18115275) before we took any action, all holders, LP’s and presalers will be airdropped their tokens even if they sold afterwards – We will also restore the LP pool – For all trades after we analyze the PnL of all traders until 22:30.

read the latest announcement.

“If they have bought more than they sold, we will reimburse them fully in ETH.” read the tweet. However, the Banana Gun live tweets did not make their follower feel better, as the comment section was still filled with “rug” accusations.