Bonk Memecoin Struggles Despite Major Token Burn
Bonk Memecoin– Bonk, the dog-themed memecoin that gained attention earlier this year, has failed to break free from the ongoing cryptocurrency downturn despite a significant token-burning event. The team behind Bonk, a Solana-based token, burned 1.69 trillion BONK tokens, worth over $51 million, in an attempt to increase scarcity and drive up the token’s price. However, the expected surge in value did not materialize, leaving many Bonk enthusiasts disappointed.
BURNmas Token-Burning Event Exceeds Expectations
In late November, the Bonk team introduced a unique plan to burn 1 trillion BONK tokens through an initiative dubbed “BURNmas.” The plan involved burning 1,000 BONK for every post using the hashtag #LetsBONK and 10,000 BONK for every new follower on Instagram and TikTok. Originally set to take place on December 25, the initiative gained momentum, leading to an updated proposal to burn 1.69 trillion tokens on December 26.
BonkDAO members voted to approve the revised proposal, and the burn event took place on December 26 at 5:40 pm UTC. According to CoinGecko data, this burn accounted for 1.85% of the total 90.97 trillion BONK tokens currently in circulation, reducing the supply from the previous 100 trillion.
The Impact of the Token Burn on BONK’s Price
Token-burning events are a common strategy in the cryptocurrency space, designed to increase the scarcity of a token by reducing its circulating supply. This mechanism typically aims to boost demand and, ideally, increase the token’s price.
However, Bonk’s recent token burn has not had the same impact as the earlier burn event in mid-November, where the team burned 100 billion BONK tokens. That burn led to a 56% price increase, reaching an all-time market cap high of $4.38 billion just a week later. Despite the substantial burn on December 26, the price of BONK has dropped by 7.2%, and its market cap has fallen to $2.3 billion as of the latest data.
The underwhelming market reaction has sparked frustration among some in the Bonk community. Several users on social media voiced their displeasure, especially regarding the delayed burn event. Initially promised for Christmas Day, the burn event was pushed to December 26, leading to a loss of trust among some followers.
On December 26, a user named BestBets tweeted, Price is continuing to drop due to you guys not keeping your word and not having good communication. BestBets further added, “You will lose so much progress and coin holders by lying to the community.” Another user, PootieCoin, also expressed concerns, stating, “I’m losing trust.”
Bonk’s Position in the Memecoin Market
Despite the setbacks, Bonk remains a significant player in the memecoin market. According to CoinGecko data, it is the fourth-largest memecoin by market capitalization, trailing only Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE). The overall memecoin market is now valued at $105 billion, with Bonk holding its ground amid a competitive landscape.
While Bonk’s price may have faltered, it continues to maintain a strong position among meme-based cryptocurrencies, which have seen widespread popularity due to viral social media campaigns and community-driven support. However, as with all memecoins, the long-term value of Bonk remains uncertain and is highly susceptible to market sentiment and broader cryptocurrency trends.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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