Hunter Biden’s LAPTOP memecoin fell by as much as 98% from its opening levels after automated “sniper” bots and limited liquidity contributed to a sharp rise and collapse, according to the project’s team.
Data from analytics provider Nansen indicated that some traders suffered losses worth six figures following the token’s debut. One wallet was down by about $199,000, while most buyers were yet to sell their holdings.
The team said the launch had been distorted by the combination of thin liquidity and automated trading activity. Sniper bots are designed to buy tokens immediately after they become available, allowing traders to enter ahead of other participants and potentially sell into a rapid rise.
That activity was blamed for the speed and scale of the token’s move, which saw Hunter Biden’s LAPTOP fall 98% from its opening levels.
Despite the losses recorded by some wallets, Nansen’s data suggested that most buyers had not exited their positions. It was not stated how many traders were affected overall, or how many eventually sold at a loss.
The project team also rejected allegations that insiders had been given preferential access to the token before its wider launch. It did not identify any traders or wallets alleged to have benefited from such access.
As part of its response, the team said it would introduce a further 4 million tokens to support liquidity on Aerodrome pools. The additional tokens are due to be deployed from 10 September.
Liquidity refers to the amount of an asset available for buying and selling without causing large price movements. When liquidity is limited, relatively small trades can have a disproportionate effect on the market price. In combination with automated trading, that can produce a steep initial increase followed by an equally rapid decline.
The episode highlights the risks associated with newly launched memecoins, where prices can move sharply and trading conditions can change quickly. In this case, the project’s explanation focused on market structure and automated activity, while the losses reported by Nansen showed the financial impact on some early participants.
The team’s planned token deployment on Aerodrome is intended to encourage deeper liquidity in the relevant pools. However, the announcement does not change the reported fall from the token’s opening levels or the losses already recorded by some wallets.
Hunter Biden’s LAPTOP was described in the original launch report as a memecoin, and the team’s comments came after its debut produced both a rapid surge and a subsequent collapse.
