Nobody knows how to beat a dead horse like the people creating meme cryptocurrencies. The Doge meme has been the inspiration for a seemingly never-ending number of dubious projects, and DogeBonk (CRYPTO:DOBO) is yet another addition to that list.
DogeBonk's claim to fame is being the first cryptocurrency sent into space -- at least according to its website. Its community managed that by literally strapping a crypto wallet to a weather balloon and sending it to 90,000 feet. They're using a very generous and inaccurate definition of space, though, since it actually starts at roughly 330,000 feet.
Despite their glaring flaws, meme tokens are often some of the most popular cryptocurrency investments. In this DogeBonk guide, we'll go over what it does and why it's not worth buying.
What makes DogeBonk unique?
What makes DogeBonk unique?
There are two uses for DogeBonk. It's one of several crypto tokens that offers what are called reflections. Reflections are rewards you earn for owning DogeBonk. On every transaction with this cryptocurrency, there's a 10% tax, and half of that is redistributed among existing token holders. The other half is used to add liquidity to the market.
DogeBonk's other perk is tied to a service it offers called MemeTools. MemeTools is a data aggregator similar to CoinMarketCap or CoinGecko, but it focuses on meme tokens. It also has a "rug checker," which is a premium feature that evaluates whether a token is likely to be a scam.
The rug checker is available to anyone with at least 3 billion DOBO tokens as of May 2022. Although that sounds like a lot, DogeBonk has a very low price, so that many tokens doesn't cost much.
Where DogeBonk came from
Where DogeBonk came from
DogeBonk first launched on May 3, 2021, but the price plummeted within a day. It was dormant for several months after that until members of the 4chan forums decided to revive it in October 2021. The founders of DogeBonk are unknown, and it's a community-led project, so there's no central entity in control of it.
The starting supply of DogeBonk was 1 quadrillion DOBO tokens, and the developers burned 30% (300 trillion) at launch by sending it to an inaccessible wallet. They reserved 2% (20 trillion) for development, leaving a community supply of 680 trillion.
How DogeBonk works
How DogeBonk works
DogeBonk is a BEP20 token built on the BNB Chain, a blockchain created by the Binance exchange. It's a fork of SafeMoon (CRYPTO:MOON), another crypto token that charges a tax on transactions and uses part of it to reward existing holders.
There's a 10% tax charged on all DogeBank transactions. Of that tax, 5% is redistributed to existing holders proportionate to the amount of DogeBank they have. Keep in mind that DogeBank also has a burn wallet, the inaccessible wallet where the founders sent 30% of the starting supply. That burn wallet receives its share of the static rewards, which means that the token supply is continually decreasing.
The other 5% of the tax is split 50/50. Half is traded for BNB (BNB -1.68%), and the other half remains DOBO tokens. These BNB and DOBO tokens are deposited to a liquidity pool on PancakeSwap (CAKE -2.36%). This adds liquidity to the market so that people will be able to trade.
Connections
Staying true to its brand, DogeBonk's initiatives tend to be meme-related. The biggest project made by the DogeBonk community is MemeTools. It provides data on smaller cryptocurrencies that may not have a listing on CoinMarketCap or CoinGecko yet. Its rug checker is also an interesting tool to identify crypto scams.
The DogeBonk community has put considerable effort into spreading the word. Besides their attempt to send the meme token to space, they've also put up a Times Square billboard for it and won Meme of the Year on Reddit.
Can I make passive income with DogeBonk?
Can I make passive income with DogeBonk?
You can make a form of passive income with DogeBonk. One of the main perks of holding DogeBonk is that you receive static rewards from every transaction. This doesn't require any effort on your part. If you have DOBO tokens, then you'll earn rewards.
Although this may sound like a good deal at first, remember that you'll be getting paid in DogeBonk, a cryptocurrency of questionable value. It's nothing like getting paid in cash. If the price of DogeBonk falls after you buy it, which is very likely, any passive income you make won't do you much good.
Passive Income
Unique risks
Unique risks
DogeBonk is a project that's full of red flags, and the most glaring one is that the whole thing just seems like a joke. The name is silly and makes it clear that this is yet another Dogecoin (DOGE -4.5%) imitator. The site is full of memes, and, according to this token's own white paper, it has only two utilities:
- Passive income through reflections
- Unlocking premium MemeTools features
The bottom line is that it does very little, and the reflections gimmick has been used by many other crypto projects. If you look at SafeMoon, or Baby Doge Coin (CRYPTO:BABYDOGE), or several other tokens launched in 2021, you'll see the exact same thing. They charge a tax on every transaction and redistribute it to token holders.
Is DogeBonk a good investment?
Is DogeBonk a good investment?
DogeBonk is a bad investment, and it's definitely a cryptocurrency you should avoid. It doesn't have any valuable features or real-world use cases. It's simply another meme token that uses the same formula as countless others.
The only way DogeBonk is different is its rug checker on MemeTools, but that isn't much of a selling point. Whether they're outright scams or not, meme tokens aren't worth your money or any of your time spent researching them. The vast majority are duds from the beginning. A small fraction generates enough hype to make early buyers money, but it's impossible to predict which ones will do that.
If you're going to invest in cryptocurrency, there are much better options that have actual utility. Consider cryptocurrency stocks for companies in the industry, or try starting with a few of the major cryptocurrencies such as Bitcoin (BTC -2.53%) or Ethereum (ETH -1.22%).
Related investing topics
How to buy DogeBonk
How to buy DogeBonk
Before buying DogeBonk, make sure you're aware of the risks involved. Even compared to other types of cryptocurrency, DogeBonk is extremely risky, and the most likely outcome is that you lose most or all of your money.
If you really want to own some DogeBonk, there are a couple of purchase options. The most common is to trade for it on PancakeSwap, a decentralized crypto exchange. To do this, you'll first need to buy another cryptocurrency, such as BNB, on an exchange and transfer it to a crypto wallet. Connect that wallet to PancakeSwap, and you can trade for DogeBonk.
ChangeNOW, an instant crypto exchange service, also has DogeBonk. You can connect a crypto wallet to ChangeNOW and trade for it or you can purchase DogeBonk using a credit or debit card (although the platform charges expensive fees for that).
Cryptocurrency is already a risky market where it's easy to lose money. To have a better chance of success, it's important to look for projects that have the potential to do something besides inspire memes.
