Memecoin Bonk, inspired by the dog icon, has failed to escape the downturn of the entire cryptocurrency market, despite a token burn event that removed 1.69 trillion BONK tokens, equivalent to more than $51 million, from circulation.
In late November, the development team of the Solana-based memecoin Bonk (BONK) proposed burning 1 trillion tokens in an initiative called “BURNmas,” which calls for burning 1,000 BONK for every social media post with the hashtag#LetsBONKand 10,000 BONK for every new follower on Instagram and TikTok — scheduled to take place on December 25.
Ultimately, the plan exceeded expectations and BonkDAO members voted in favor of the update proposal to burn 1.69 trillion BONK Tokens on December 26 at 17:40 UTC.
This event accounts for 1.85% of the 90.97 trillion BONK Tokens currently circulating, down from 100 trillion, according to data from CoinGecko.
The price of BONK is going the opposite way.
Token burning is often a popular strategy to increase Token value by creating a favorable balance between supply and demand.
However, this Token has not succeeded in replicating the success from the previous burn of 100 billion BONK Tokens on November 13, when the Token price rose 56% and reached an all-time market capitalization of $4.38 billion a week later.
Since the burn event on December 26, this Token has decreased by 7.2% with a market capitalization of $2.3 billion, amid a broader market downturn.
While the cause of the sell-off remains unclear, some Bonk supporters had previously expressed disappointment with the Bonk team for not fulfilling promises on December 25.
The price continues to drop because you haven't kept your promises and there’s poor communication,” X user “BestBets” told Bonk's key contributor, “Nom,” on December 26, just hours before the Token burn event.
You will lose significant progress and investors if you lie to the community,” BestBet added.
I lost faith,” said X user PootieCoin.
Despite the price drop, BONK remains the 4th largest memecoin in the $105 billion market, following Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), according to data from CoinGecko.
