Benzinga - BONK (CRYPTO: BONK) is taking the crypto-world by storm — soaring over 186% in the last 24 hours.
What Happened: Crypto analyst 'LitecoinYagami', a BONK holder, has explained the good, the FUD (fear, uncertainty and doubt) and the ugly about this meme coin that is poised to beat the likes of Shiba Inu (CRYPTO: SHIB) and Dogecoin (CRYPTO: DOGE).
See Also: Best Crypto Day Trading Strategies
According to LitecoinYagami, the tokenomics of BONK is beneficial, with over half of the initial supply being air-dropped to the Solana (CRYPTO: SOL) community. The analyst highlighted that the token has a low fully diluted valuation, a high supply, and a three-year vesting period for initial contributors.
“High FDVs lead to inflation and high sell pressure. Tokens reach absurd valuations, but eventually more tokens flood the market, driving the price down,” the analyst said, adding that many ‘predatory tokens’ utilize high FDV.
LitecoinYagami mentions that BONK has had a bit of a lift from adding integrations, such as the recent addition to Whirlpool's rotation for liquidity providers.
“BONK has inspired a movement that has begun to extend even outside of our ecosystem... and the price of Solana is rallying behind it. Holders of the free airdrop have been rewarded and they're making the right amount of noise.”
The Good: Community $BONK has inspired a movement that has begun to extend even outside of our ecosystem... and the price of Solana is rallying behind it.The FUD: The analyst highlighted the fact that on the website it's stated that all early contributors will be subject to a three-year linear vesting period. He reaffirmed that the rules are clear and that nobody was forced to purchase the token.Holders of the free airdrop have been rewarded and they're making the right amount of noise.
Great vibes. pic.twitter.com/H3HKWEBTgN
— Lite. (@LitecoinYagami) January 3, 2023
The Ugly: LitecoinYagami said that market conditions are not favorable. The analyst went on to note that on a macro level, things are in a bear market. “Realistically, alt [coins] still have room to bleed. If they do, meme coins will suffer 100x worse.”
BONK's launch in late December included a generous airdrop of free tokens to Solana developers and NFT collectors, along with those in LamportDAO, a hub for Solana developers and NFT owners from projects including DeGods and Famous Fox Federation.
Over 100 trillion BONK tokens have been created, with 50% airdropped to developers, NFT owners, creators and artists, and the remaining portion vested into special contribution contracts for BONK.
Price Action: At the time of writing, BONK was trading at $0.000004161, while Dogecoin was trading at $0.07345, up 1.7%, and Shiba Inu was at $0.000008511, up 3.21% in the last 24 hours.
Read Next: Bitcoin, Ethereum, Dogecoin Rise On Fed's Mostly Bullish Tone: Analyst Sees More Consolidation For Apex Crypto
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.