If you have been following crypto for the past few years, you are aware of the community’s obsession with dog-themed meme coins. Tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB) created millionaires overnight and received praise from celebrities such as Elon Musk. Most of these meme coins exist on the Ethereum network. Bonk Coin (BONK) is a new project that is “the first Solana dog coin for the people by the people.”
Overview of Bonk Coin (BONK)
BONK launched via airdrop in late 2022. The 100 trillion tokens were split up as follows:
- 5% to the team. These tokens were later burned to help with price declines. It was worth over $10 million at the time.
- 5% to marketing
- 5% to initial liquidity
- 15% to BonkDAO
- 20% to early contributors
- 20% to 40 Solana NFT collections
- 15% to early OpenBook traders
- 10% to Solana artists and collectors
- 5% to Solana developers
About 50% of the tokens from the airdrop were distributed to the Solana community. The team says that this decision was in response to “toxic Alameda tokenomics” and was meant to make sure “everyone gets a fair shot.” The reference to “Alameda” is directed at the FTX founder, Sam Bankman-Fried, who held massive amounts of tokens like Solana in his trading firm Alameda Research, making them heavily centralized. Because of these gargantuan positions, when his companies went bankrupt, Solana and the other tokens they had large positions in crashed. Essentially, the creators were angry with the way Bankman-Fried was able to manipulate the system for his own profit. As such, they claim that they are hoping to make their token for all people.
Why Do People Use Bonk Coin (BONK)?
BONK is used for two main purposes: price speculation and payments. Since the airdrop, the price has been volatile, as you would expect for a small altcoin. Many are buying and selling the token in hopes of making a profit.
Others use the token as a form of payment. It has been integrated into existing projects on the Solana chain. For example, Duel Casino allows you to make bets on popular casino games with BONK. Another example is Aurory, which allows users to play games against other players and earn BONK for winning.
Overall, BONK does not sport the same use cases as other large tokens, but it has its niche in the dog-themed meme coin space.
Bonk Coin (BONK) History
BONK was released via an airdrop in late December 2022. While the founders have decided to remain anonymous, they did burn their share of the supply to support the price.
In terms of price movements, BONK has been extremely volatile. Within a few weeks of the initial airdrop, the price skyrocketed over 2,000% and reached a market cap of over $200 million. However, the price quickly dropped by around 80% and currently has a market cap of around $50 million.
Where to Buy Bonk Coin (BONK)
Because BONK is such a new token, it is not available on many major crypto trading platforms, but you can buy it on ByBit and Huobi Global.
To get started on either of these platforms, create an account using an email and verify it with basic personal information. You can then connect your bank and fund the account. You cannot buy BONK directly, so you will have to buy Tether (USDT) and swap it for BONK. The token is also available on a handful of decentralized exchanges (DEX).
Bonk Coin (BONK) Blockchain vs. Other Blockchains
Bonk Coin is built on the Solana network. Solana was created to be a cheaper and faster alternative to Ethereum. However, it failed to reach the same levels of popularity as Ethereum and had a rough 2022.
In terms of consensus, Solana combines micropayments with a proof-of-history (PoH) and proof-of-stake (PoS) consensus model to verify its millions of microtransactions. PoS works by employing validators who own SOL to lock their investment on the blockchain. They verify the legitimacy of transactions and earn rewards for doing so. The chain holds the token as collateral to punish those who do not validate correctly. This system is similar to that of Ethereum, although Ethereum does not use PoH.
How to Store Bonk Coin (BONK) Safely
While a crypto brokerage can be an easy way to buy and sell BONK, it may not be the safest location to store it. A hardware wallet is a great way to add an extra level of security to your crypto holdings.
Ledger is a hardware wallet that allows users to securely store crypto. It stores private keys on a physical device, so crypto can only be accessed if the device is present. Ledger wallets support the sending and receiving of Solana assets, including BONK.
Ledger offers three hardware wallets: the Ledger Nano S Plus, Nano X and the Stax. The Nano S Plus is cheaper and more beginner friendly. The Nano X is more expensive and offers more advanced features, such as more storage and Bluetooth connectivity. All Ledger wallets support more than 1,800 different cryptocurrencies including Bitcoin, Ethereum, Dogecoin, Bonk Coin, and all ERC-20 tokens.
If you plan on obtaining BONK from a DEX, having a wallet is necessary. Ledger’s hardware wallets may be a great option for those looking to safely store crypto.
Is Bonk Coin (BONK) a Good Investment?
Like many others in the crypto sector, you may be wondering if BONK is a good investment given the recent drastic price movements. When deciding whether to invest in BONK, consider factors such as your risk tolerance. If you have done your own research and concluded that BONK is a good investment, then it may be worth looking into purchasing the token.