Hunter Biden said on Oct. 7 that an audit by investigative firm Groom Lake found no evidence that the team behind the $LAPTOP token cashed out during the project’s collapse. According to the audit, all founder tokens have remained in a single wallet and have not moved since launch. The tokens are subject to a six-month lockup, followed by linear vesting over two years.
The report said the token’s launch suffered from extremely thin liquidity. Market Maker 1 reportedly supplied only about $5,200, or 1% of a $500,000 startup allocation, along with 0.003% of the token supply into the liquidity pool. That structure made the price highly sensitive to buying activity, sending $LAPTOP from $0.05 to about $317 in under two minutes, a gain of more than 600,000%, before it fell 98% within an hour.
The audit also said Market Maker 1 removed liquidity 84 seconds after the token peaked and during a wave of selling, leaving no funds to absorb sell orders. Hunter Biden said the market makers responsible should fully buy back and burn the relevant tokens, adding that he does not plan to abandon the project.
TechFlow reported on Oct. 7 that Hunter Biden had published the results of an audit by investigative firm Groom Lake into the collapse of his token project, $LAPTOP, and said the team did not cash out.
Audit says founder tokens never moved
According to the on-chain findings, all founder tokens were held in a single wallet and had not moved since launch. The disclosed schedule sets a six-month lockup, followed by linear vesting over two years.
Thin liquidity amplified the initial price move
The audit said liquidity was extremely limited in the early stage of the launch. Market Maker 1 contributed only about $5,200, or 1% of a $500,000 startup fund, along with 0.003% of the total token supply to the liquidity pool.
Under those conditions, buy orders were able to push the token sharply higher. $LAPTOP rose from $0.05 to about $317 in less than two minutes, a jump of more than 600,000%, before dropping 98% within one hour.
Liquidity withdrawal and reported profits
The audit said Market Maker 1 pulled funds from the pool 84 seconds after the token hit its peak and while sell orders were coming in. That left the pool with no capital to absorb selling pressure, allowing the price to break lower.
In the end, Market Maker 1 made about $686,000 from its decentralized exchange, or DEX, position, while DEX trades linked to Market Maker 2 generated more than $2.1 million in profit.
Hunter Biden’s response
Hunter Biden said the market makers responsible for the failed issuance should fully buy back and burn the related tokens. He also said he would not abandon the project.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
