Token Symbol: BONK5L
According to the one-pager, BONK is the first dog-themed coin on Solana "for the people, by the people" with 50% of the total supply of the cryptocurrency airdropped to the Solana community. BONK is similar to Shiba Inu (SHIB) and Dogecoin (DOGE) memecoins, it was launched on December 25, 2022, and led to an increase in the price of the SOL token (a rise of 34% in 48 hours). Trading began on December 30, 2022, arousing genuine interest from the crypto community. The main goal of the team is to bring back liquidity to Solana-based decentralized exchanges (DEXs). The idea of the developers was to create a full-fledged community coin that will be used across all the dApps built on Solana, and each user will have the opportunity to become part of the ecosystem, "where everyone gets a fair shot". BONK was airdropped randomly to Solana NFT collectors, developers, and artists, other airdrop details remain unknown.
BONK5L is a leveraged token that goes long on BONK with 5x leverage, which means that for every increase in the price of BONK in the market, the leveraged BONK token seeks a 5x increase in its price. BONK5L is required to maintain its target leverage and does so through dynamic rebalancing to gain a net value increase by 5% when the price of BONK goes up by 1%.
Due to such rebalancing and investment costs, BONK5L may suffer a net value loss when the market fluctuates. Please note, AscendEX’s leveraged tokens are not suitable for long-term investment. Investors must be cautious while investing in leveraged tokens and manage their investment risks in a timely manner.
Leveraged tokens differ from regular tokens for spot trading in that there is higher risk and volatility, which could bring about great returns or losses in a single day. Please learn more about leveraged tokens in our help center before making an investment.