Safety Shot Falls After BONK Investment: Stock Falls 50%!

Safety Shot Falls After BONK Investment: Stock Falls 50%!

Safety Shot Inc., a company that originally specialized in the production of health drinks, has recently made a drastic change of course and is now investing in cryptocurrencies, particularly the altcoin BONK. On Monday, Safety Shot announced that it will invest $25 million in BONK, with the goal of pumping a total of up to $115 million into the digital asset by the end of the year. This decision follows the trend of more and more companies forming crypto treasuries, supported by the activities of firms such as MicroStrategy and SharpLink Gaming. Crypto expert Nom will serve as a strategic advisor to Safety Shot in this initiative; he has already actively participated in the creation of BONK.

With the investment, Safety Shot plans to acquire approximately 4 to 5 percent of BONK's total offering. The company currently holds more than $15 million in cash and will issue an additional $35 million in convertible preferred stock. However, Safety Shot's share price has seen a dramatic decline, falling 92 percent since its peak in 2021, reducing its current market cap to $82.7 million.

Investor reaction

However, the announcement of the BONK investment did not come without negative consequences for Safety Shot shares. After the announcement, the price of the shares fell by over 50 percent to currently $0.56. In the after-hours trading hours on August 11th, the price even fell to around $0.59. Investors' disappointment with the announcement was palpable, as the share price fell 51.04 percent on Monday.

In addition to the challenges in the stock market, BONK's price itself was hit by the developments, falling 10 percent to currently $0.00002445. However, despite these price drops, many investors remain active in trading BONK. BONK's market cap is currently approximately $1.96 billion, with a 24-hour trading volume of $535.73 million.

Advantages and competitive advantages of BONK

Safety Shot highlights that BONK has some advantages over competitors such as Shiba Inu and Pepe. BONK offers lower transaction fees and higher speed, which is increasingly in demand in the crypto community. An integrated burn mechanism has also contributed to BONK's previous price gains, which could support confidence in this Telegram again.

Apart from the BONK investment, there are also other projects in the cryptocurrency space, such as the SUBBD project, which is in the presale phase and has raised $984,892.58 so far. Currently, the presale price for SUBBD is $0.05615, and early backers can benefit from a staking yield of up to 20 percent. Security considerations and innovative strategies also appear to be fueling this new wave of cryptocurrency projects.