Dog-themed memecoin Bonk failed to make its way out of a wider crypto slump despite a token-burning event that took 1.69 trillion BONK tokens, worth over $51 million, out of circulation.
In late November, the team behind the Solana-based memecoin Bonk (BONK) proposed to burn 1 trillion tokens under a scheme called “BURNmas,” which would burn 1,000 BONK for every X post with the hashtag #LetsBONK and 10,000 BONK per new follower on Instagram and TikTok. BURNmas was initially slated for Dec. 25.
It eventually exceeded the target and BonkDAO members voted in favor of an updated proposal to burn 1.69 trillion BONK tokens on Dec. 26 at 5:40 pm UTC.
This would account for 1.85% of the 90.97 trillion BONK tokens currently in circulation, down from 100 trillion, CoinGecko data shows.
BONK price goes backward
Token burns are a common strategy to increase token prices with a more favorable supply and demand dynamic.
Still, the token has so far failed to recreate the same success it saw from an earlier 100 billion BONK token burn on Nov. 13, which saw its token price increase 56% to reach a new all-time high market cap of $4.38 billion a week later.
Since the Dec. 26 burn event, the token is down 7.2% with a market cap of $2.3 billion amid a broader market decline.
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While it isn’t clear what caused the sell-off, several Bonk enthusiasts had earlier expressed frustration at the Bonk team for failing to execute the burn on Christmas Day as promised.
“Price is continuing to drop due to you guys not keeping your word and not having good communication,” X user BestBets said to Bonk core contributor Nom on Dec. 26, hours before the burn event took place.
“You will lose so much progress and coin holders by lying to the community,” BestBets added.
“I’m losing trust,” X user PootieCoin added.
Despite the price fall, BONK remains the fourth-largest memecoin in what has grown into a $105 billion market, trailing only Dogecoin (DOGE), Shiba Inu (SHIB) and Pepe (PEPE), CoinGecko data shows.
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