BONK

What is BONK?

BONK is a Solana-based (SOL) memecoin that was airdropped to the Solana community on Christmas day 2022. The crypto project’s mascot is a Shiba Inu dog, inspired by a popular memecoin called Dogecoin (DOGE).

Advertisements

In the third week of December 2023, BONK surged over 100% after the token was listed on Coinbase – the biggest crypto exchange in the US by trade volume.

Techopedia Explains Bonk Crypto

A memecoin is a cryptocurrency that is inspired by internet memes, jokes, and satire. Memecoins are not designed with a specific use case in mind however, as a memecoin’s community and popularity grows, the project may build an ecosystem centered around the meme cryptocurrency.

The BONK cryptocurrency exists on the Solana blockchain, which is one of the most valuable layer one (L1) blockchains in the world.

According to BONK’s whitepaper, the project aims to be a “community coin of Solana” that will be used across many decentralized applications (DApps). BONK said that it will “flip the script” on “predatory VC (venture capital) tokens that preyed on the wider Solana Community” by giving power back to the people.

BONK aims to do this by airdropping 50% of its total supply to “NFT degens and DeFi traders”, artists, and collectors on Solana.

BONK Tokenomics

Tokenomics refers to the study of the supply, distribution, and demand of a cryptocurrency.

Below, we have compiled some important information that BONK investors will find useful.

Here is how BONK was distributed when it was originally airdropped in December 2022, according to the BONK whitepaper:

Recipients % of total BONK supply
40 most active NFT projects on Solana 21%
Active crypto traders and DeFi users on Solana 15.8%
Artists and collectors of 1/1 art on Solana 10.5%
Developers on Solana 5.3%
Early contributors to the BONK project 21%
BONK decentralized autonomous organization (DAO) 15.8%
Liquidity distribution on decentralized exchanges (DEX) and DeFi protocols 5.3%
Marketing promotions, incentives, giveaways 5.3%

Pros and Cons of BONK

Is BONK a good crypto investment? What are the pros and cons of BONK? Let’s find out.

Pros:

  • BONK is listed on popular centralized exchanges (CEX), including Coinbase, Binance, and KuCoin
  • BONK is part of a Solana ecosystem that is growing in popularity as an alternative to Ethereum
  • BONK has seen incredible price action in 2023, over 10,000%
  • The token will be the center of a growing BONK ecosystem of dApps
  • BONK ecosystem launched a decentralized exchange (DEX) called BonkSwap in November 2023
  • BONK can be used to earn interest by providing liquidity on BonkSwap

Cons

  • BONK has a high total supply of 100 trillion coins.
  • Meme coins tend to experience fading hype as new meme coins come up.
  • Meme coins face high market volatility.
  • There is no information about the team behind BONK.
  • BONK has limited utility.

How to Buy BONK?

You can buy BONK using your debit card, credit card, digital wallet, and online banking on CEX. Buying BONK on CEX is easy and convenient as fiat-to-crypto conversions are available. However, you will need to send your BONK tokens to a crypto wallet to use it on dApps.

You can also buy BONK directly from your crypto wallet via crypto swaps on DEXs. For example, on Solana-based DEX called Raydium, you can exchange your SOL token for BONK coins. Please note that you will have to pay the gas fees quoted in SOL to process the transaction.

Where to Buy BONK Coin?

Where can you buy BONK coins? You can do it on centralized exchanges (CEX) like Coinbase and on decentralized exchanges (DEX) like Raydium.

Buying BONK on CEXs

Here is the list of some of the CEXs where you can buy BONK:

  1. Coinbase
  2. KuCoin
  3. Binance
  4. Bybit
  5. Bitget
  6. MEXC

Buying BONK on DEXs

You will only find BONK on Solana-based DEXs. Here is a list of DEXs where you can buy BONK:

  1. Raydium
  2. Orca
  3. Jupiter
  4. OpenOcean
  5. BonkSwap

Ethereum users can gain exposure to BONK by buying Wrapped BONK tokens. Wrapped tokens represent the market value of another token. Wrapped BONK will track the market price of Solana-native BONK.

The Bottom Line

BONK’s over 10,000% gain in 2023 is incredible, even by crypto standards. No wonder we are seeing increased interest in the Solana-based meme coin.

If you are interested in buying BONK, please do your own research (DYOR), be mindful of the fear of missing out (FOMO), and remember that meme coin trading is extremely risky.

Advertisements

Related Terms

Mensholong Lepcha

Mensholong Lepcha is a financial journalist specializing in cryptocurrencies and global equity markets. He has worked for reputed firms such as Reuters and Capital.com. Fascinated with blockchain technology, NFTs, and the contrarian school of investing, Mensholong has expertise in analyzing tokenomics, price movement, and technical details of Bitcoin, Ethereum, and other blockchain networks. He has also written articles on a wide range of financial topics including commodities, forex, central bank monetary policies, and other economic news.