While the market is blood red, a new cryptocurrency has appeared on the Solana blockchain. Dubbed Bonk, it has skyrocketed since its Christmas show. We take stock of this new meme corner and the reasons for its success, which 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 the same coins. It is 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 takes up the effigy of a dog, the Shiba Inu, on its logo. Despite everything, cryptocurrency has encountered a monster success after its issuance on the Solana blockchain. In the space of a week, the price of Bonk has increased tenfold. Since its inception, the value of the token has increased by 4,000%. It’s huge, but it’s not unheard of for a crypto of this ilk, which relies entirely on speculation.
Despite the crash of cryptocurrencies, the collapse of FTX and the economic crisis, the price of Bonk reached 0.00000439dollar on the day of January 5, 2023. After this peak, the price started to fall again to stabilize around $0.00000161, at the time of this writing.
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How did Bonk attract investors?
If investors are enthusiastic about this new cryptocurrency, the information available on the project can be counted on the fingers of 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 same corners, the Bonk organized an airdrop reserved for holders of non-fungible tokens (NFT) certified on the Solana blockchain. Half of Bonk’s total supply was given away for free, creating an almost immediate buzz. An aidrop consists of offering digital assets, such as cryptos or NFTs, to certain investors. In general, you have to own a particular asset to benefit from it. This practice attracts profit-seeking users.
In order to put himself forward, Bonk does not hesitate to capitalize on the name of Solana to differentiate himself from other same corners. On Twitter, the individuals behind the project boast that Bonk recorded “more transactions in the last three days than Ethereum has had in the same period”.
“It’s the power of Solana”says the band behind Bonk.
Based on data from a community dashboard, $BONK has had more transactions over the last three days than Ethereum had over the same period of time.
That’s the power of Solana. pic.twitter.com/j9frZCazwJ
— Good! (@bonk_inu) January 6, 2023
Moreover, a white paper, supposed to detail the operation and the objective of the project, is accessible on the official website. Very superficial, the document merely outlines its purpose. Apparently Bonk was designed to support the Solana ecosystem, which has been in decline since the collapse of FTX. Cryptocurrency was in fact 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”prophesy the creators of Bonk in the white paper.
Of course, Bonk’s success is likely to be short-lived. The token owes the rise in its price to the airdrop organized during the launch. It is to be feared that the bellows will not take long to fall. In addition, the possibility of a scam cannot be ruled out. In theory, the creators of Bonk could decide to disappear after converting their earnings, reducing the value of the crypto to zero… and the savings placed by users.
Another drop in the ocean
The creation of a new cryptocurrency does not have an event. Every day, new tokens are issued on blockchains. Thanks to the deployed infrastructures, it is very easy to launch a crypto in a few minutes, with a minimum of know-how. This is why the number of digital assets has exploded in recent years. According to the latest news, we count more than 20,000 cryptocurrencies on the market, compared to 5,000 last year.
Unsurprisingly, a large portion of these digital currencies are scams. According to data collected by Solidus Labs, more than 350 fraudulent cryptos are born every day. These tokens have only one purpose: to rob the most gullible investors.
Good
