Banana Gun Telegram bot team buys back its own tokens after smart-contract error

The planned September 11 launch of the Banana Gun native token from the Telegram bot trading platform failed after the team discovered a bug in the smart contract.

Announcement
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.

1. First step is to sell the treasury wallet to drain the LP…

— Banana Gun ?? (@BananaGunBot) September 11, 2023

The BANANA token was supposed to facilitate distribution among holders of the revenues earned from trading through the bot. It was also intended to implement a cashback feature and the ability to burn coins to compensate for potential increases in supply.

On September 8, the Banana Gun team sold 2 million tokens for 800 ETH ($1.2 million) as part of the presale, which involved about 800 wallets. The initial price was $0.65.

During the presale, whitelist candidates could not be filtered from using multiple wallets to obtain more than one allocation, but this was fixed retroactively.

On September 11, BANANA was launched. The project allocated 500,000 tokens and $325,000 in WETH to provide liquidity on decentralized exchanges.

The coin’s price initially rose to $7, then peaked at $8, according to Dexscreener.

The price held at that level for about an hour before the team detected a serious problem in the token’s smart contract. As a result, a 4% fee was not credited to the protocol treasury, remaining in the transaction initiator’s wallet.

The developers decided to sell all tokens from the treasury — about 6.38 million or 63.8% of the total supply — to restore liquidity and implement a restart.

This action caused the BANANA price to plunge to $0.025.

The Banana Gun team is now conducting an audit of a new smart contract and pledges to credit tokens to holders who sold them after the bug. In addition, traders who bought more coins than they sold after the drop will receive compensation in Ethereum.

Earlier experts warned of the risk of losing cryptocurrency when trading through Telegram bots.