Detailed Explanation to Understand Solana-Based Meme Coin Bonk

Considered Solana’s ‘social layer,’ BONK, a dog-themed meme coin, has surged to a market capitalization of surpassing $1.5B.

BONK was born out of the ruins left behind by FTX plummeting in November 2022. The meme coin seeks to unite the Solana community. 

In December last year, a BONK boom boosted this cryptocurrency’s market capitalization to more than $1B. This resulted in Solana smartphones selling out after shrewd traders noticed that the BONK airdrop with the phones was worth more compared to the devices themselves. 

This guide discusses what this dog coin entails, what makes it unique, how it functions, and what the BONK meme is.

Explanation of BONK

Considered Solana’s ‘social later and community meme coin,’ BONK is a Solana-founded cryptocurrency with an ecosystem including dapps, decentralized exchanges (DEXs), nonfungible tokens (NFTs), and a dog mascot. 

CoinGecko’s data shows that Bonk is the sixth biggest meme coin and the 63rd biggest cryptocurrency by market cap as of May this year. Sam Bankman-Fried, FTX’s fallen founder, strongly backed Solana. Hence, following his fraud’s unraveling in 2022, the Solana community sought a means to distance itself from the exchange’s plummeting.

With Solana’s piece being at an all-time low,’ 22 Solana developers collaborated to develop a ‘community coin’ with an effective ecosystem. 

Despite the BONK core team staying anonymous, they assert they have previous experience developing nonfungible tokens, decentralized finance, and other products on Solana. Further, they claimed the groups lack a leader instead of collaborating as equals. 

Soon after the token’s unveiling in December 2022, Solana community members and developers were airdropped BONK worth approximately $300 for Christmas. This strategy sought to unite and award the community for pushing through the challenging year. CoinGecko’s data shows that the airdrop’s worth is above $550,000 as of May.

In January last year, BONK’s developers burned 5 trillion BONK assigned to them to avert a drop in the cryptocurrency’s value. The burn reduced BONK’s circulating supply by 5% to 94.2 trillion. However, the value kept plummeting in the burn’s immediate result.

Understanding the BONK Ecosystem

BONK’s official website shows that it has 129 integrations. However, it highlights even critical projects in its ecosystem, including BONKSwap, an automatic market maker (AMM), and BONKbot, a Telegram trading bot that permits Solana users to trade using the messaging service.

Examples of additional projects in the BONK ecosystem entail OpenBONK, a decentralized exchange, BuyBONK, a cross-chain bridge to purchase BONK, and Moonwalk, a gamified fitness program.

It is critical to highlight BONK’s continuous engagement with Solana’s nonfungible token initiatives. For instance, the project allocated 21% of its token supply to 40 active Solana nonfungible token projects. Additionally, BONKz, a BONK-instigated NFT suite, was unveiled last year.

Understanding What is in the Bonk Name

Bonk’s name references several comic memes involving dogs being hit on the head using hammers with a ‘bonk’ sound effect. KnowYourMeme notes that the ‘bonk’ meme comes from a 2019 Instagram post featuring an ‘amusingly distorted’ Siba Inu being hit by a hand grasping a hammer.

Despite influencers’ previous features in the cryptocurrency culture, none have done so as much as recently. After Elon Musk supported Dogecoin, the original meme cryptocurrency, it evoked a wave of imitators.

Some people believe that investing in meme coins is crazy, while others believe it is an inexpensive bet that can result in a 1000% profit. Unlike most mem coins, the BONK token utilizes its proprietary logo, not the original meme. 

Final Thoughts

Since the first Christmas Day airdrop in 2022, BONK has focused on strengthening the Solana community. Moving forward, the distribution tactic is not different. 

The BONKDAO decentralized autonomous organization (DAO) has been assigned 15.8% of BONK’s overall supply to enable the community to pick the BONK ecosystem’s next destination. The decentralized autonomous organization has voted on proposals, including making a voting tutorial video and burning treasury tokens.