Consolidation continues in the cryptocurrency market. While the leading cryptocurrency Bitcoin is trying to hold on above the $95,000 level, a mixed outlook prevails in the altcoin market. In this uncertain environment, a meme coin project has launched a massive token burning campaign. Although such a move is normally expected to positively affect the price by reducing the token supply, the meme coin price continued to decline.
BONK made a big token burn move, but…$BONK
The crypto market is generally bearish. This negative environment weakens the impact of important developments. Dog-themed meme coin Bonk made headlines with a burn campaign that removed 1.69 trillion BONK tokens worth over $51 million from circulation. However, despite this move, it failed to escape the broader crypto crash.
In late November, the team behind Solana-based meme coin Bonk (BONK) set a goal of burning 1 trillion tokens by burning 1,000 BONK for every X post using the#LetsBONKhashtag and 10,000 BONK for every new follower on Instagram and TikTok, with a target of 1 trillion tokens planned for December 25. They eventually surpassed that goal. Additionally, BonkDAO members voted in favor of a current proposal to burn 1.69 trillion BONK. This would account for 1.85% of the 90.97 trillion BONK tokens in circulation.
Token burning is a common strategy that aims to increase prices by balancing the supply and demand dynamics. However, despite this burning, the BONK price was unable to repeat its success on November 13. In November, after 100 billion BONK tokens were burned, the meme coin price increased by 56%, and BONK reached an all-time high with a market cap of $4.38 billion a week later.
However, the burn event held on December 26th did not achieve the same success. The event coincided with a broader market decline, with BONK losing 7.2% of its value at $2.3 billion. While the exact reason for the sell-off is unclear, some Bonk enthusiasts expressed their disappointment with the Bonk team for not delivering on the previously promised Christmas Day event. X user “BestBets” criticized the Bonk team before the burn event: “You did not keep your promises and did not communicate well. That’s why the price keeps falling. You will lose a lot of progress by lying to the community.” Another X user, PootieCoin, commented on the situation, saying, “I am losing my trust.”
Despite the price drop, BONK remains the fourth-largest meme coin behind Dogecoin, Shiba Inu, and Pepe with a market cap of $105 billion, according to recent market data.