Solana Meme Coin BONK Drops 11% After Coinbase Announcement
The price of the Solana meme coin BONK has experienced a significant drop of 11% following the announcement that Coinbase will soon list the token on its exchange. Initially, BONK saw a surge of 15% in price after the announcement, but this increase was short-lived, with the price later plummeting by as much as 20%. This decline comes after BONK recently reached an all-time high and surpassed the Elon Musk-themed coin FLOKI.
Coinbase Tests with BONK Token
Proof of Coinbase’s active testing with the BONK token emerged when a Solana wallet labeled “Coinbase 2” transferred 500,000 BONK, equivalent to approximately $5. Although the price of BONK has slightly recovered since then, it remains sluggish as of Wednesday afternoon.
Jealousy Among Pepecoin Fans
The announcement of Coinbase listing BONK sparked jealousy among fans of Pepecoin, another popular meme coin. Pepecoin supporters had previously called for their token to be listed on Coinbase but were declined due to concerns over the Pepe the Frog meme being co-opted by alt-right groups.
The “Coinbase Effect”
Coinbase listings have historically caused significant price spikes known as the “Coinbase Effect.” However, these gains are often short-lived. In some cases, such as with BONK, they can lead to unintended consequences like insider trading allegations.
Changes in Coinbase’s Token Listing Process
Following insider trading cases involving former Coinbase product manager Ishan Wahi, Coinbase has revamped its token listing process. Tokens are now added to the roadmap, a blog post that discloses assets under consideration. However, BONK is not yet officially listed on the exchange.
Solana’s Performance
Meanwhile, Solana (SOL) started the day at $64.36 and has since rebounded to $67.13, experiencing a slight 0.7% dip from its price at the same time yesterday. SOL is currently trading 7.4% higher than it was a week ago.
Hot Take: BONK’s Volatility Highlights Risks of Meme Coins
The recent volatility of BONK following the Coinbase announcement underscores the risks associated with meme coins. While they can experience significant price surges driven by hype and market speculation, these gains are often short-lived and can lead to substantial losses for investors.
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