The token has increased by more than 4,000% since its launch on December 25th. However, caution is still required in light of the vague contours of such a project.
Another token in the sea of 20,000 cryptocurrencies. His nickname? Well. The dog-headed “meme coin” has gained more than 4,000% since its launch on December 25, according to Coinmarketcap. If its progress slowed over the course of a few days, the crypto still rose 114% in 24 hours, trading this Thursday around $0.000004.
What is this new crypto? At this stage, little information is available on its official website.
“Bonk is the first dog-like cryptocurrency on Solana for the people, by the people, with 50% of the total airdrop supply to the Solana community. BONK developers were tired of Alameda’s toxic tokenomics and wanted to create a fun meme cryptocurrency where everyone has a fair chance,” it read.
This crypto therefore falls in the same coin category as Elon Musk’s favorite cryptocurrency dogecoin or shiba. It seems to be coming to the rescue of the Solana ecosystem and its eponymous cryptocurrency, which has been going through a veritable descent into hell for months.
100 trillion tokens
But how to explain such a rise in this particular token? On the one hand, the project has gained credibility thanks to a so-called airdrop system. As a reminder, an airdrop is a free distribution of a cryptocurrency (token) made by the creators of this same cryptocurrency. For a project, this type of method allows for visibility.
So when bonk launched, 50% of the supply of this token (whose total supply was set at 100 trillion tokens) was distributed to Solana users in the form of an airdrop. This distribution has led to some enthusiasm around this project, which involves large trading volumes on decentralized platforms linked to the Solana ecosystem. For example, the bonk/solana pair saw about $20 million in volume within 24 hours. Likewise, the team behind the bonk project has already “burned” many tokens over the past few days in an attempt to increase the price.
Despite the euphoria surrounding this token, caution is warranted. First of all, the team at the initiative of this same corner remains anonymous, which leaves some doubt about the reliability of such a project.
In addition, this token combines the characteristics of a marketing project above all “fun” and surfing on certain issues of the crypto ecosystem (the fall of the Solana ecosystem, bankruptcy of Alameda Research, which was linked to Solana…) . Likewise, the project’s Twitter account, which already has more than 67,000 followers, makes many announcements to promote this crypto, which is generally not a very good sign.
Moreover, the “bonk paper”, which takes up 5 pages, is a compendium of terms related to the web 3, which again resembles a marketing project, far from a serious project. Nothing to do, for example, with the “white paper” of the Bitcoin blockchain, published in 2008, which laid the foundations of bitcoin’s fundamentals.