If you’ve been following crypto for a few years, you’re aware of the community’s obsession with dog-themed coins. Tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB) created overnight millionaires and garnered praise from celebrities such as Elon Musk. Most of these same coins exist on the Ethereum network. Bonk Coin (BONK) is a new project which is “the first Solana dog coin for the people by the people”.
Overview of Bonk Coin (BONK)
BONK launched by airdrop in late 2022. The 100 trillion tokens were distributed as follows:
- 5% to the team. These tokens were then burned to help lower the price. He was worth over $10 million at the time.
- 5% on marketing
- 5% to initial liquidity
- 15% at BonkDAO
- 20% to first contributors
- 20% at 40 Solana NFT collections
- 15% to early OpenBook merchants
- 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 the move was in response to Alameda’s “toxic tokenomics” and was meant to ensure “everyone gets a fair shot.” The reference to “Alameda” is to FTX founder Sam Bankman-Fried, who held huge amounts of tokens like Solana at his trading firm Alameda Research, making them highly centralized. Due to these gargantuan positions, when his companies went bankrupt, Solana and the other tokens in which they had large positions collapsed. Essentially, the creators were angry at how Bankman-Fried was able to manipulate the system for his own benefit. As such, they claim that they hope to make their token for everyone.
Why do people use Bonk Coin (BONK)?
BONK is used for two main purposes: price speculation and payouts. 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 means of payment. It was integrated into existing projects on the Solana channel. For example, Duel Casino lets you place bets on popular casino games with BONK. Another example is Aurory, which allows users to play games against other players and earn BONKs to win.
Overall, BONK doesn’t have the same use cases as other big tokens, but it does have its niche in the dog-themed coin space.
Bonk Coin (BONK) History
BONK was released via airdrop in late December 2022. Although the founders decided to remain anonymous, they burned their share of the offering to prop up the price.
In terms of price movements, BONK has been extremely volatile. Within weeks of the initial airdrop, the price skyrocketed over 2000% and reached a market cap of over $200 million. However, the price quickly dropped around 80% and currently has a market capitalization of around $50 million.
Where to Buy Bonk Coins (BONK)
Because BONK is 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 any 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 need to buy Tether (USDT) and exchange it for BONK. The token is also available on a handful of decentralized exchanges (DEXs).
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 has not reached the same levels of popularity as Ethereum and has had a tough 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 in their investment on the blockchain. They verify the legitimacy of transactions and earn rewards for this. The chain holds the token as collateral to punish those who don’t validate properly. 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 might be an easy way to buy and sell BONK, it might not be the safest place 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 the crypto can only be accessed if the device is present. Ledger wallets support sending and receiving Solana assets, including BONK.
Ledger offers three hardware wallets: the Ledger Nano S Plus, the 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 over 1,800 different cryptocurrencies including Bitcoin, Ethereum, Dogecoin, Bonk Coin and all ERC-20 tokens.
If you plan to get BONK from a DEX, it is necessary to have a wallet. Ledger hardware wallets can be a great option for those looking to store crypto securely.
Is Bonk Coin (BONK) a good investment?
Like many others in the crypto industry, you may be wondering if BONK is a good investment given the recent drastic price movements. When deciding 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, it may be worth considering buying the token.