The Solana ecosystem has found itself in a difficult situation caused by fear, uncertainty and doubt as to its Connections with disgraced crypto exchange FTX.
Since the collapse of the exchange, the ecosystem has been trying to distance itself from former FTX CEO Sam Bankman-Fried, with Messari even posting a detailed overview of the ecosystem and how it was impacted by the December 15 implosion.
But a new project called bonk has been making headlines for the past few days, raising its prices and giving Solana some welcome respite from the troubles she’s had to endure.
What is BONK and what it can bring to the Solana ecosystem
According to Bonk official siteBonk represents the Solana community that made the Solana ecosystem great in the first place. This is the first Solana “for the people, by the people” dog coin.
“Bonk contributors are fed up with toxic ‘Alameda’ tokenomics and wanted to create a fun memecoin where everyone gets a fair shot,” the official website states.
This has certainly touched a spot in the Solana community and the crypto world as a whole, as the token is now in place. 214% in the last 24 hours.
— Solana Legend 🎒 (@SolanaLegend) January 4, 2023
The metric proves that Solana, the “Ethereum killer”, is not dead and has a bullish community backing him.
With the token having a impressive burn rate and big trade listing it for the open trade, Bonk is now making a name for himself. Expectations are high for the dog meme piece. For example, many wonder: Will this save Solana from extinction?
Vague white paper and extreme returns
Although the hot new memecoin is leading the charge for Solana in 2023, it’s not without confusion. Their white paper itself is very vague, only detailing the distribution of the 100 trillion tokens to the various parties.
According to data from orcaan on-chain liquidity automated market maker (AMM) from Solana, Bonk has a very unsustainable rate of over 1% per hour just to provide liquidity.
Although this may only be short term to attract additional capital from community investors.
Crypto total market cap at $778 billion on the daily chart | Chart: TradingView.com
Although 50% of the total BONK token supply has been airdropped, investors might be wary that the remaining half is held by early contributors.
To counter this fear, early contributors to the project have a three-year vesting period, which means the tokens awarded to them are locked until the end of the three-year period.
It is important to recognize the willingness of contributors to empower the Solana community.
However, how they will do this was not made clear in the white paper. Although Bonk certainly has a positive effect on the price of FLOORit remains to be seen if this project would actually live up to the hype surrounding it.
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