BONK Crypto: What Is The Dog Meme Coin Based On Solana?
Meme coins are a recent phenomenon in the crypto space: born to be assets exchanged and used mainly for fun, some of them became valuable crypto assets – but most of them turned out to be scams.
What about Bonk Inu (BONK)? This meme coin, based on the popular blockchain Solana, is considered by its creators the first dog-themed meme coin created by people for people.
In this article, we will analyse its features and predictions for 2023.
What Is Bonk Crypto?
As mentioned, Bonk Inu is a meme coin. This type of crypto asset is considered riskier than cryptocurrencies like Bitcoin and Ether – but it’s not less popular.
Meme coins are riskier because they do not have specific use cases and goals, and their tokenomics doesn’t provide scarce supply.
This applies also to Bonk Inu. But it is necessary to specify that BONK was born with a specific intent: avoiding a new unfair crypto.
Why was crypto BONK launched?
The attempt of Bonk Inu, as stated in the paper of the meme coin, is to bring power back to people – especially those who contributed to the growth of Solana.
To better understand this topic, it is important to mention that the crypto winter that hit the industry in 2022, also affected Solana.
The team behind Bonk Inu goes on with other tough statements: for too long Solana has been the victim of predatory VC tokens. This statement implies that the team doesn’t want this to happen anymore – that’s why they want to bring power back to the people, something that actually represents the core ideology of cryptocurrencies.
To understand why the team mentions VC tokens, it’s important to understand one of the most critical moments of 2022 for the crypto space – the FTX fall.
The fall of FTX
And here it is important to mention another statement of the BONK team: The Bonk contributors were tired of toxic “Alameda” tokenomics.
At the end of 2022, the giant FTX, the centralised crypto exchange co-founded by Sam Bankman-Fried worth over $30 billion, collapsed. The exchange had not enough reserves to cover its customers’ investments, and this became evident when people started withdrawing money compulsively, also because of the FUD generated by the general fall of crypto prices.
On December 12, 2022, Bankman-Fried was arrested, and the company filed for bankruptcy.
Countless investors lost their money, but that’s not all.
When the crypto BONK team refers to the “Alameda tokenomics”, they’re making reference to Alameda Research, the hedge fund that also represented the sister firm of FTX.
According to Cointelegraph, FTX had a “backdoor” credit line that involved Alameda.
The collapse of the exchange had a domino effect: not only traders lost money, but also all the companies that had invested in the exchange. Moreover, the opinion of people on cryptos further affected the prices of other coins and tokens.
Solana was one of the cryptocurrencies affected, and BONK wanted to create an alternative system, able to distribute funds in a fair way and to highlight the reliability of Solana.
Why crypto BONK is making headlines
BONK is the first dog-themed meme coin based on Solana. The strength of meme coins lies in the importance of the communities that support them, and the launch of a meme coin is an important step to increase the popularity of a network and the number of its supporters.
The Solana network became increasingly popular thanks to NFT, since the network wants to facilitate access to this market.
That’s why BONK and NFTs are strictly correlated – and this is evident if we have a look at the distribution of the 100 trillion BONK created.
In fact, 20% of the supply is distributed among 40 Solana-based NFT projects, and another 10% to collectors and artists.
15% of the supply is for traders and investors who use Solana’s OpenBook to place their trades.
5% of the supply is for developers who use Solana.
What about the remaining 50%? 15% will be used for a BONK DAO: DAOs – Decentralised Autonomous Organizations – are used in the crypto space to raise capital and provide voting power across its members. This further confirms the importance of the community for Bonk Inu.
5% of the supply is allocated to provide initial liquidity – so BONK can be traded across different DEXes, and any rewards earned thanks to this liquidity distribution will be redistributed among the members of the DAO.
5% will be used for marketing purposes. The remaining 5% was burned to protect the price of Bonk Inu.
How can you buy BONK? Step by step guide
If you’re interested in crypto BONK, there are a few easy steps to follow to buy it.
- Bonk Inu is available on centralised crypto exchanges like XT and Bybit. So, the first step is choosing the exchange that better fits your needs.
- Since centralised exchanges work similarly to traditional accounts, you’ll need to sign up by providing your personal information.
- Then, you need to complete the process by confirming your account and providing all the documents needed by the exchange. These steps are necessary for the exchange to comply with regulation concerning financial activities.
- Now, you can top up your account – also with fiat currencies – to buy the amount of BONK you want.
How to store Bonk Inu in a wallet and which wallet should you have?
If you choose to buy and trade BONK crypto on a centralised exchange, you don’t need a decentralised wallet – the exchange will create one for you.
You can use the address associated with your wallet also to receive the numerous airdrops used by the Bonk Inu team to distribute tokens.
You can choose a wallet from the Solana ecosystem that supports BONK. Alternatively – and this is the best option for developers – you can use the command line wallets to create your wallet.
BONK crypto Forecast for 2023
We can assess that burning 5% – 5 trillion – of the supply had not the desired effect on the price of BONK.
In fact, the token started being traded at around $0.00005 – it is currently very inexpensive – but after the burning event the price fell under $0.000002.
Now, it is important to note that is something that usually happens to new project – and you should consider that the first BONK airdrop occurred in December 2022: the price usually falls after the token or coin finds support on exchanges, because speculators want to get rid of their supply soon after the price rises. It always takes some time for the token to stabilise.
BONK price is currently quite stable: if we look at data shared by CoinMarketCap, at the time of writing the price of BONK is at around $0.0000015, and it seems it is following a sideways movement.
Of course, you should not expect impressive prices for the future – the supply of BONK is too high to reach high prices, but it is safe to assume that the price should rise in 2023.
According to Dune, there were over 14 million BONK transactions in the past few weeks, showing that the trading activity involving this token is already remarkable.
According to CryptoPredictions, the price of BONK should reach about $0.000005 by the end of 2023, and should increase even more in the next few years.
BONK crypto – Bonk Inu – is an interesting crypto experiment if we look at its goals and purpose.
Based on Solana, this token aims at recovering the reputation of the network after the FTX collapse, and at creating a more sustainable and fair environment for the Solana community.
The fact that BONK is the first dog meme coin of Solana increases, for sure, the popularity of this token, which is slowly working on its purpose of creating a stronger and larger community around Solana.
Bonk Inu (BONK) is the first dog-themed meme coin based on Solana. It was created to build a stronger community around the network and to reward that community. The goal is actually to give traders and investors a fair crypto token, distributed across the different components of the network, mainly via airdrops.
The team behind BONK assesses that they wanted to avoid another “Alameda tokenomics” – that is, a crypto economic system mainly owned by not very transparent venture capitalists.
The fall of FTX was dramatic, and had a domino effect on crypto markets – already weakened by the crypto winter of 2022.
Solana was among the network affected, especially because Sam Bankman-Fried publicly supported the network and invested in it.
BONK tokens are distributed especially among developers and NFT projects based on the Solana network. The team often lanches airdrops – which is usually a good tactic to gain more users, but in this case, it is also a way to confirm that the network wants to create a fair system.
Moreover, 5% of the total supply was burned to protect the price of the token.
The goal of BONK is to create a fair crypto system that can reward its supporters. Meme coins mainly rely on the strength of their communities, and BONK is a good occasion for Solana to recover its reputation and user base after the fall of FTX and the scandal the involved both FTX and Alameda Research.