HumidiFi, an automated market maker, experienced unusual buying activity during its WET token sale event. Following the allocation of tokens, the team observed that the majority of purchases originated from a bot farm, which automated the transactions to conclude the event within minutes.
HumidiFi launched its WET token with the intention of achieving a fair distribution. However, the team discovered that a significant portion of the tokens were acquired rapidly by a bot farm utilizing specially funded wallets.
The presale concluded in mere seconds, effectively front-running all other eligible wallets. HumidiFi utilized Jupiter's platform for the Initial DEX Offering (IDO), segmenting buyers into three eligible groups. Despite this segmentation, a network of interconnected wallets managed to connect to the smart contract immediately and acquire all available tokens.
The market maker, which contributed to the overall Decentralized Exchange (DEX) volume on Solana, also noted that the sniping of WET tokens might have been executed by a single large holder, undermining the intended democratic distribution plan.
“For the public sale, a bot farm sniped the entire supply instantly and weterans were not able to participate,” explained the team via their X account.
The token sale failed to reward previous point farmers and DeFi veterans on Solana. Consequently, the HumidiFi team has decided to launch a new token and discontinue the current version of WET. The presale will be relaunched with a new token smart contract, enabling previous Solana DeFi users to claim the new asset.
HumidiFi to Launch New WET Token Following Relaunched Presale
Despite the disruption, the event is being considered successful in terms of fundraising, having raised $1.39M in USDC, valuing the project at $69M at the initial presale price. The IDO was conducted in three stages, distributing one tranche of 60 million tokens and two additional presales of 20 million tokens each, one for Jupiter stakers and one for a public presale.
Individuals who acquired the token during the initial sniping event may find themselves holding a worthless asset, as HumidiFi has not yet announced any refund policy for deposits. The WET presale utilized Jupiter's platform, which apparently lacked sufficient account filtering and bot defenses.
WET generated significant hype, reaching $0.25 in pre-market trading. However, the premarket price subsequently decreased to $0.15 with considerably lower trading volumes.
Given that WET was intended for immediate unlocking, the initial trading activity may have contributed to a further price decline. The tokens were slated for launch on Meteora and the MEXC centralized exchange.
WET tokens were scheduled for distribution on December 9, but the recent developments might cause a delay in the token generation event. As the token had not yet been created, there is no immediate risk of competing assets with the same ticker.
HumidiFi Offers Access to Dark Liquidity Pools
HumidiFi distinguishes itself from other Solana DEXs by providing access to dark liquidity pools. The exchange's trading volumes and liquidity are not transparent, and the platform has not disclosed its fee structure.
The HumidiFi approach is designed to mitigate sniping and front-running orders, which represent significant challenges for retail investors on Solana.