While the market is blood red, a new cryptocurrency has emerged on the Solana blockchain. Dubbed Bonk, it’s skyrocketed since his Christmas show. We take stock of this new meme corner and the reasons for its success that promises to be ephemeral.
On December 25, 2022, a new cryptocurrency was born: Good. Like the Shiba Inu, the Dogecoin or the Tamadoge, the Bonk is classified in the category of coins of the same name. It’s a cryptocurrency inspired by a meme appeared on the internet. It’s a simple joke and the real interest of these tokens is limited, even non-existent, whatever Elon Musk says.
Not very original, the Bonk includes the image of a dog, the Shiba Inu, on its logo. Despite everything, cryptocurrency has encountered a monster success after its issuance on the Solana blockchain. Within a week, Bonk’s price increased tenfold. Since its launch, the token has increased in value by 4,000%. It’s huge, but it’s not uncommon for a crypto of this nature to rely solely on speculation.
Despite the Cryptocurrency crashAfter the collapse of FTX and the economic crisis, the price of Bonk reached $0.00000439 on January 5, 2023. After this peak, the price started falling again to stabilize around $0.00000161 at the time of writing this article.
Also read: CFO embezzles money, trades crypto and loses it all
How did Bonk attract investors?
If investors are enthusiastic about this new cryptocurrency, the available information about the project can be counted on one hand. On the token site we learn that “ Bonk is the first dog-like cryptocurrency on Solana for the people, by the people “.
To get out of the game of other equal corners, the bonk organized a drop of air reserved for holders of non-fungible tokens (NFT) certified on the Solana blockchain. Half of Bonk’s total supply was given away for free, causing quite a stir almost immediately. An airdrop consists of offering digital assets such as cryptos or NFTs to specific investors. In general, you must own a certain asset in order to benefit from it. This practice attracts profit-seeking users.
To stand out, Bonk does not hesitate to capitalize on the Solana name to stand out from other equal corners. On Twitter, the people behind the project boast that Bonk recorded it “More transactions in the last three days than Ethereum in the same period”.
“It’s the power of Solana”says the band behind Bonk.
Based on data from a community dashboard, $BONK has performed more transactions in the last three days than Ethereum in the same period.
This is the power of Solana. pic.twitter.com/j9frZCazwJ
– Good! (@bonk_inu) January 6, 2023
In addition, a white paper is available on the official website, which aims to detail the operation and goal of the project. The document is very superficial, content to outline the outlines of its purpose. Apparently Bonk was designed for this support the Solana ecosystem, which has been bearish since FTX collapsed. The cryptocurrency was actually largely based on investments made by Sam Bankman-Fried through his companies.
“2023 is the year the Solana community takes back control of this network”predict the makers of Bonk in the white paper.
Of course, Bonk’s success is likely to be short-lived. The token owes the increase in its price to thatair drop organized during the launch. It is to be feared that the bellows will not take long to fall. In addition, the possibility of fraud cannot be ruled out. In theory, Bonk’s creators could decide to disappear after converting their earnings and reducing the value of the crypto to zero… and the savings made by users.
Another drop in the ocean
The creation of a new cryptocurrency has no event. New tokens are issued on blockchains every day. Thanks to the infrastructures provided, it is very easy to launch a crypto in minutes with a minimum of know-how. Because of this, the number of digital assets has exploded in recent years. We count on the latest news more than 20,000 cryptocurrencies on the market, compared to 5,000 last year.
Not surprisingly, a large portion of these digital currencies are scams. According to data collected by Solidus Labs, More than 350 rogue cryptos are born every day. These tokens have only one purpose: to rob the most gullible investors.