BONK Whale Makes Waves: Ycombinator for Solana Gets a Major Boost

• The BONK meme coin, initially conceived as a light-hearted means to distribute wealth within Solana, has evolved into an unexpected venture fund investor.
• The Bonk DAO, overseeing $124 million in BONK tokens, plans to allocate $500,000 from its treasury to an early-stage startup fund supporting Solana blockchain projects.

Originating as a lighthearted response to distribute wealth within the Solana ecosystem, the BONK meme coin has transformed into an unexpected role: an investor in a venture fund. The Bonk DAO, consisting of a 12-member council comprising influential figures in Solana, overseeing $124 million in BONK tokens, intends to allocate $500,000 from its treasury to an early-stage startup fund. The fund aims to support projects developing on the Solana blockchain, as determined through a recently concluded governance vote.

Colosseum, the recently launched startup accelerator, is orchestrating a fund to support projects within the Solana ecosystem, focusing on initiatives stemming from hackathons. The Solana Foundation recently delegated this responsibility to Colosseum, led by its former head of growth, Matty Taylor. Expressing surprise at the unique nature of the investment, Taylor refrained from disclosing ongoing fundraising details due to securities laws.

BONK DAO Investing Into Big Projects

The inception of BONK DAO occurred concurrently with the creation of the BONK token in 2022. The meme coin’s founders allocated over 15% of all BONK to the DAO for community project management. As a Cayman-based entity, BONK DAO is the largest holder of BONK tokens, possessing over 12% of the meme coin’s total supply. While the DAO has previously directed BONK towards hackathon sponsorships, liquidity pools, and DeFi partnerships across Solana, the recent investment represents its inaugural venture check, as per its governance page.

The voting process, with eight in favor and none against, secured the decision to invest in what was described as a “Ycombinator for SOL,” signaling a commitment to supporting ecosystem builders and diversifying the DAO treasury through equity investments. Another ongoing vote suggests converting BONK into USDC via a trading partnership with market-maker STS Digital over several months.

The Price Volatility

BONK is currently navigating a challenging phase characterized by substantial price declines and evolving market sentiments.

In a recent development, BONK experienced an 8.12% decrease in its price over 24 hours. This decline is part of a larger trend characterized by successive lower highs and lower lows, indicating a bearish trajectory. The Relative Strength Index (RSI) for BONK, a key market momentum indicator, dropped to 35.10, falling below the standard threshold of 50.

This signals an oversold condition, suggesting a potential continuation of the downward trend. Moreover, the Awesome Oscillator exhibited a decrease, aligning with the negative price movement and contributing to the prevailing bearish outlook.

The cryptocurrency market’s perception of BONK is transforming, evident in the rising number of short positions taken against the token. This shift reflects an increasing skepticism among traders regarding the coin’s future performance. As more market participants embrace short positions, it may signify a broader lack of confidence in BONK’s capacity to stage a short-term recovery.