What is BONK?
Bonk Coin (BONK) is a Solana-based memecoin that was launched on December 25, 2022, and is notably inspired by the popular Dogecoin, featuring a Shiba Inu dog as its mascot. Its introduction was marked by an airdrop to the Solana community at a time when confidence around the Solana network was shaken following FTX's collapse.
The distribution of BONK was extensive and community-focused, with the intent of boosting morale of Solana network participants. A significant portion of its total supply was airdropped to various groups within the Solana ecosystem, including Solana NFT projects, DeFi traders, artists, and developers. The overarching goal was to establish BONK as a community coin of Solana, distinct from venture capital-backed tokens.
Today, BONK is supported by many centralized exchanges and decentralized applications, and serves as a unit of account and means of exchange.
What is BONK?
BONK is an Solana Program Library (SPL) token, which means it is built on and operates within the Solana blockchain. This is similar to how ERC-20 tokens operate on the Ethereum network. By leveraging Solana's infrastructure, BONK inherently relies on Solana's security mechanisms and operational framework. All of BONK's transactions, data handling, and overall functionality are thus underpinned by the efficiency and scalability of the Solana network.
BONK was launched with a total supply of approximately 93 trillion coins. The breakdown of this supply includes allocations for team development, marketing, initial liquidity, and a Bonk DAO, among others. As of January 2024, approximately 56 trillion BONK tokens were in circulation. BONK's whitepaper can be found here.
Risk statement
Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.
No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform.
Wealthsimple has performed an assessment of whether BONK can be supported by Wealthsimple's platform, including whether BONK is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.
We evaluated BONK based on publicly available information, including (but not limited to):
- The creation, governance, usage and design of BONK, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created BONK;
- The supply, demand, maturity, utility and liquidity of BONK;
- Material technical risks associated with BONK, including any code defects, security breaches and other threats concerning BONK and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them;
- Legal and regulatory risks associated with BONK, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of BONK; and
- Statements made by regulators or securities regulatory authorities in Canada and other jurisdictions regarding whether BONK, or generally about whether the type of crypto asset, is a security and/or a derivative.
Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple's original assessment of those assets, including Wealthsimple's assessment of the application of securities and derivatives laws. Any significant changes relating to BONK may result in changes to this Crypto Asset Statement and/or Wealthsimple's ability to support BONK.
Like all other crypto assets, there are some general risks to investing in BONK. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.
We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading BONK. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.
Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision).
The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.
Last updated: December 16, 2024
Comments
0 comments
Article is closed for comments.