A brief analysis of the first Solana-based Meme coin

Another one has joined the long line of dog-themed meme coins or the “dog coin” that started with Dogecoin — Bonk. It is the first meme coin based on the blockchain platform Solana, launched in 2020 by Solana Labs. It sets out to emerge itself to be called as “dog coin for the people by the people”, or, “the people’s dog coin”.

What’s new about the meme coin Bonk

Launched on 25 December, 2022, Bonk is the latest to join the series of dog-themed meme coins or the dog coins. The tagline that the company uses is that it is a dog coin by the people for the people. It is the first dog coin that is based on the technology of Solana.

The Solana blockchain platform was launched by Solana Labs in 2020, a San Francisco based tech company founded by Anatoly Yakovenko and Raj Gokal in 2018. It makes use of a mechanism called ‘proof-of-stake’ consensus mechanism to develop its smart contracts.

Solana lists its native cryptocurrency as Solana or “SOL”. All the other cryptocurrencies that run on the Solana network are listed as per the norms of Solana Program Library (SPL) token standards. They are called SPL tokens and follow the SPL (Solana Program Library), which is a collection of on-chain programs that manage how the blockchain of these tokens runs.

Examples of SPL tokens are — Tether, Chain link, Walken. However, SOL is not an SPL Token — it is the native token used by the Solana platform. In the Solana ecosystem, Bonk has become the first meme coin that takes after the popular dog-themed meme coins like Dogecoin and Shiba Inu.

The proof-of-stake model makes blockchains extra secure and allows some of the highest transaction speeds. The blockchain platform Solana itself is known for its efficiency and speed. It is a Layer 1 blockchain available at very affordable costs. Its popular proof-of-stake based smart contract functionality makes Solana one of the most performant and most commonly used blockchains across the world.

Market volatility being seen in Bonk

Bonk declared its motto since the beginning — to establish itself as “a fun meme coin where everyone gets a fair shot”. Distributed via an airdrop, it was launched during a “bear market”. In the airdrop event, it distributed 50% of its 100 trillion supply of Bonk coins in the market amongst the Solana community itself.

Widely, it is being used for the trading of NFTs on the Solana platform. As of today, 1 Bonk is equal to 0.000000627 USD. Despite witnessing quadruple digit rises during its initial phase, it is currently going through periods of 7–days troughs and crests of 10-20%. Looking at the recent data, it shows -14.76% from its 7-day all-time high at 0.0000007356 and +3.16% from its 7-day all-time low at 0.0000006078.

In light of yesteryear developments, meme coins have gained a reputation of being “rug pulls”. Likewise, the founders of Bonk remain anonymous. Although it would be unfair to stereotype Bonk as a “rug pull” just because of the anonymity of its developers, crypto enthusiasts looking to invest in Bonk are well advised to do so with utmost caution.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing