By Nanzhi, The Daily Planet
BONK: Solana's Rising Star
In 2023, BONK emerged as one of Solana’s top-performing meme coins alongside WIF. Its bull run began in early November 2023, skyrocketing from a $20 million market cap to $1.5 billion by mid-December—a 75x surge. Unlike typical meme coins, BONK isn’t purely community-driven. It’s pivoting toward real utility:
- Launched BonkBot, a Telegram trading bot for Solana, which burns BONK tokens via service fees (over $10M burned to date).
- Announced the Osprey BONK Trust on October 16, 2024, targeting institutional and high-net-worth investors.
Inside the Osprey BONK Trust
Investor Eligibility
To participate, investors must meet strict criteria:
- Individuals: Annual income >$200K (or $300K with spouse) or net worth >$1M.
- Entities: $5M+ in liquid assets.
Key Terms
- No redemptions: Investors can only exit via secondary market sales.
- Lock-up potential: Each share represents 216,999.02 BONK. With 9.792M initial shares, up to 2.12 trillion BONK (3% of supply) could be locked—worth **$49.3M** at current prices ($0.00002273/BONK).
- 2.5% annual management fee (usage undisclosed).
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Why Attract Mainstream Money?
The trust’s appeal extends beyond simplicity:
Tax Advantages
- Investments via 401(k) retirement accounts defer taxes until withdrawal.
- BONK’s team endorsed this strategy, noting: "Memecoin gains from tax-advantaged accounts."
Institutional Validation
- Signals credibility, potentially boosting long-term price stability.
Risks to Consider
The trust’s disclaimer highlights:
- Unregistered securities: Shares are restricted, with no redemption plan.
- Liquidity risks: Investors must weigh lock-up periods carefully.
From Meme to Utility: BONK’s Evolution
While most meme coins rely on hype, BONK and others (like FLOKI’s TokenFi) are building tangible use cases:
- BonkBot burns $20K–$30K worth of BONK daily ($10.53M total), creating deflationary pressure.
- 2024’s meme coin frenzy saw ephemeral stars rise and crash—utility could be the key to longevity.
FAQ
Q: How does the trust differ from buying BONK directly?
A: It offers tax benefits (e.g., 401(k) investments) and institutional-grade access.
Q: What percentage of BONK’s supply could be locked?
A: Up to 3% (2.12 trillion tokens).
Q: Is BONK’s burn mechanism sustainable?
A: BonkBot’s consistent burns ($10M+) provide a price floor, but long-term viability depends on adoption.
👉 Learn more about crypto trusts
Disclaimer: This article is informational only. Investors should conduct independent research.
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