Solana-based meme coin Bonk (BONK) started losing value after futures contracts opened on Binance.
According to CoinGecko data, BONK has increased in the last four weeks. more than 1,200% by gaining value More than $327 million reached market value.
However, this number started to decline after Binance added 50x leveraged perpetual futures contracts for BONK to the platform yesterday.
Perpetual futures contracts, which are a type of traditional futures contracts, unlike others does not have a maturity date. In this way, investors can hold their positions for as long as they want.
These contracts did not produce positive results for some cryptocurrencies. Another meme coin, PEPE, was released before perpetual futures contracts on Binance opened on May 5. $1.5 billion achieved market value. Within four weeks after the operations started, this number up to $380 million declined.
Investors taking short positions using these contracts may have a negative impact on the price. BONK’s market value also decreased to 257 million dollars after the transactions started.
Delphi analyst Priyansh Patel said: “There is no guarantee whether this will work, but if we look at the past, there is a high probability that such a situation has arisen. However, time will tell!” said.
Patel also stated that the movement in BONK price may be directly linked to Solana (SOL). “Considering how BONK mirrors the price movement of SOL, it would not be unreasonable to assume that this continues and BONK begins to move sideways, if not corrected,” Patel said. said.