A memecoin that was minted 15 minutes after billionaire crypto-hater Charlie Munger's death soared by more than 31,000% on Wednesday as speculators flocked to decentralized exchanges with millions of dollars worth of ether (ETH) and stablecoins.
The MUNGER token subsequently lost more than 98% of its value on Thursday after details emerged around the token's smart contract, which had erroneous functions programmed that allowed developers to restrict the sale of the asset.
The former vice chairman of conglomerate Berkshire Hathaway and described by Warren Buffett as his closet partner and right-hand man, Munger was a staunch bitcoin skeptic who once described the world's largest cryptocurrency as "detestable."
"I just think the whole damn development is disgusting and contrary to the interests of civilization," Munger said about cryptocurrencies in general earlier this year.
Daily trading volume for MUNGER peaked at $3.5 million on Wednesday but has since slumped to less than $60,000, according to CoinMarketCap.
In this case, the smart contract featured a blacklist function and authorization that could persuade users to approve what appears to be a malicious smart contract, according to GeckoTerminal.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.