Bonfire seeks to protect buyers from the volatility of the market, but it’s been a bumpy ride thus to.
Bonfire is an crypto token which was introduced in April. As per its site, Bonfire offers holders a safe haven from the storm, which is the volatile cryptocurrency market. If you decide to invest in Bonfire it is possible to pay taxes on sales by others as well as “watch your profits grow.”
It wasn’t time for Bonfire to attract a following and early results were encouraging. In just two weeks, it reached 100,000 customers. In May the market had witnessed an increase of nearly 1,700 percent. However, this didn’t last since the price is steadily declining since reaching the all-time high in May.
It’s not a unique issue to Bonfire and the whole market has seen a dip in recent times. If you’re trying to decide what cryptocurrency to purchase Blockster it’s a matter of whether Bonfire is able to rebound or if the cryptocurrency is dead.
How does Bonfire work? Bonfire functions
Bonfire is one of the new tokens which use static rewards. These are tax-free for sellers, and are utilized to reward owners.
Here’s how Bonfire’s fixed rewards work: each transaction is subject to an additional 10% charge. In the example above, if someone makes a sale of the equivalent of 10 millions Bonfire tokens, one million will go towards the fee. Half of the fee is distributed to all holders of Bonfire. The remaining portion goes to an liquidity pool, which is a pool of money that makes trading easier Bonfire.
Static rewards are a characteristic which has gained a lot of popularity in new tokens and can be a good idea effectively if the price goes up or remains the same. However, the majority of tokens will end up in the free fall. If that occurs, you’ll losing money even after putting the earnings you made.
There are many goals listed in Bonfire’s whitepaper and roadmap. find out more Here are the most prominent and how they’ve been progressing to date:
- The HTML0 is a cryptocurrency that is a non-fungible currency (NFT) marketplace: The Bonfire team is creating “the most unique, NFT-based marketplace for trading frictionless.” It’s described in Bonfire’s objectives to achieve in 2021’s third quarter and at present, the progress is zero according to Bonfire’s website.
- A Bonfire application: This will allow users to purchase Bonfire to keep track of their passive income earned from the token, access market data and receive news from Bonfire’s team. It was mentioned among Bonfire’s objectives in the 2nd quarter 2021 however, the progress currently is just 30 percent.
- An exchange for crypto Bonfire plans to launch a decentralized cryptocurrency exchange named FireSwap within the last quarter of 2021. Current progress is 0 percent.
Bonfire is in contact with the major trading platforms in the hope of getting Bonfire included. But it’s unlikely that this will occur, since the largest exchanges are notoriously cautious about the currencies they offer. The majority of buyers purchase Bonfire on PancakeSwap which is a decentralized exchange which houses a variety of smaller projects.
Bonfire has lofty goals however, they’re no different from the goals established by a variety of other projects. There’s no shortage in new tokens, whose teams are planning to create NFT platforms, applications and exchanges. Like Bonfire and others, these projects are supposed to go to the moon.
The issues are with Bonfire
In evaluating Bonfire there are a few red flags that appear.
Inability to meet goals
In the past two months, the Bonfire team has been having trouble adhering to its plans. The biggest issue is the Bonfire application, which was not fully functional until the second quarter of 2021.
The map also included weekly ask me everything’s (AMAs) as well as billboard advertisements. None of these were ever done, neither. There’s been AMA videos but they’re not regular.
It’s not a great indicator that Bonfire has been unable to achieve its goals, especially easy ones such as weekly AMAs. This raises questions about Bonfire’s capacity to meet the more challenging goals.
Massive price drop
Bonfire enjoyed a spectacular week in May’s early days However, since then, it has been a disaster. The price has dropped over 90% and trading volume is just a tiny fraction of what it was.
The argument that Bonfire’s team and its supporters adhere to is that the whole cryptocurrency market is in decline which means that a drop in price is anticipated. But there’s a problem with this argument The main reason for Bonfire lies in the fact that they’re “sheltered against the waves.”
The main page of the website explains the fact that markets can be scary and how Bonfire allows you to “seek shelter from the storm that is outside.” The whitepaper echos this sentiment, noting that Bonfire “allows users to find refuge in the uncertainties in the pros and cons marketplace.” There’s no way to protect yourself from risk when your investment is able to lose 90 percent or more of the value.
No competitive advantage
If you compare Bonfire with the other crypto-currencies that are flooding the market there’s anything that stands apart. The transaction fee of 10% was previously used and its goals aren’t different from the plans of other projects.
The “Why Bonfire?” section of the whitepaper is a general overview that can be applied to various cryptos. It states that Bonfire is a team of passionate people who want to create an appealing and financially sound cryptocurrency for traders who trade on a short-term basis as well as a suitable investment for long-term investors. they’re determined to alter the current status quo of the field of decentralized financial services (DeFi).
You can simply copy and paste that description into hundreds or thousands of different cryptocurrency.
Should you purchase Bonfire?
Bonfire is not a good option to make the purpose of a crypto investment. These tokens are all over the place.
They’ve got big goals including the launch of their own exchange. They’ll add on the 10% transaction cost and show you how you can earn money from holding. They also promote these tokens to the maximum extent they can on social media, including discussion of the potential for prices to grow 100 times more.
There are numerous projects in the market that look exactly like Bonfire however, the majority are not successful. Making a purchase on Bonfire or something similar to it is like purchasing penny stocks. There’s only a small possibility of finding the needle in the haystack that results in it. However, 99 percent of the time you’ll lose money.