Has the bull run of Solana-based BONK, seen as the new Dogecoin, finally over? The altcoin price has seen a drastic decline in the past 24 hours. So what’s behind this? Is this altcoin one of the scams?
Altcoin price crashed after a bull run
cryptocoin.com As you follow, last week has been a crazy ride for meme coin BONK. The altcoin appeared suddenly and soon became one of the top 200 cryptocurrencies by market cap. The Solana-based meme-coin was hit hard by a strong downtrend late Thursday evening.
As speculation spread that BONK’s creators would sell their holdings, a number of Solana whales liquidated BONK positions. Because of this, BONK’s market value dropped by 54% in 24 hours. Despite the significant drop in price, the meme-coin is still positive after an increase of 1,509.7% in the previous week.
After the current bearish boom, the altcoin’s 24-hour trading volume dropped 43.40% to $63 million. Altcoin market cap dropped to $93 million. Because a large number of SOL whales started selling BONK holdings and making huge profits. One cryptocurrency investor in particular admitted on Twitter that he sold $700,000 worth of BONK shortly after purchasing it for just $330.
Will the altcoin price drop further?
However, according to the token’s rich list data, the top twenty wallet addresses hold almost 50% of the circulating supply of the token. This has led many to believe that the token can be manipulated and abandoned by large wallet holders. Moreover, if conspiracy theories are to be believed, some suspect that disgraced crypto king Sam Bankman-Fried is behind all this. Because he’s been so involved in the development and ecosystem of Solana (SOL), the creator of the now-defunct FTX exchange. A crypto enthusiast made the following claims on Twitter:
BONK is a (scam) scam coin. The top 20 holders own 50% of the total tokens. A collapse is inevitable. But more scams are all other tokens created on other Blockchains.
The price of the meme-coin had increased recently due to the cryptocurrency burn announcement, where the developers stated that all five trillion BONK tokens allocated to them were destroyed. Given the current volatility in the cryptocurrency market, it’s hard to say what the future will hold for BONK’s price. BONK has been showing evidence of a decline lately. So many viewers predict that it will eventually drop to zero.
Developers burned 5 trillion BONKs
The developers behind Solana-based meme coin BONK burned the 5 trillion BONK tokens they had allocated earlier on Friday in an attempt to halt the token’s bearish momentum. In the incineration, they removed approximately $1 million worth of BONK from circulation. After the token burn, BONK’s circulating supply decreased by 5% to 94.16 trillion, according to data from Solscan.
A token burn is a standard process for reducing the supply of a cryptocurrency. It could also (in theory) lead to an increase in the price of the asset. However, BONK reacted otherwise. Currently, Bonk (BONK) is currently trading at $0.000002118. This represents a 30% drop in the last 24 hours according to CoinMarketCap.