Why Did Bonfire’s Token Go Up in Flames?

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Buyers thought they’d found the crypto that would make them rich, but the results couldn’t match the hype.
For about a week at the start of May, Bonfire looked like a winner. Its price went up by over 1,700 %, it reached over $ 75 million in day by day trade book, and its supporters were talking about how this nominal was going to the lunar month. Those expectations soon came crashing back to reality. In less than two months, Bonfire has lost over 90 % of its rate. daily trade bulk much does n’t evening crack $ 500,000, and most of those enthusiastic supporters have moved on.

The story of Bonfire is a common one, and it offers some useful lessons if you ‘re trying to decide which crypto to buy .

What is Bonfire?

Bonfire is a cryptocurrency token that launched on April 18, 2021. According to the whitepaper, it ‘s “ a frictionless, yield-generating contract that allows the exploiter to seek shelter amidst the uncertainty of the commercialize. ” It ‘s a description that manages to be both excessively complicated and dim. The truth is that Bonfire is good a cryptocurrency like any other, with two celebrated features that it copied from tokens that were trending :

• Static rewards: Every Bonfire transaction has a 10% fee. Half of that fee is redistributed to all Bonfire holders as a reward. The other half is used for a liquidity pool, or a pool of crypto funds that facilitates trading.
• Manual burns: The Bonfire team can burn (destroy) tokens whenever they want to reduce the supply. Bonfire’s original supply was 1 quadrillion tokens, and 40% have been burned so far.

Both of these features were popularized by Safemoon, a cryptocurrency that launched in March. After Safemoon ‘s early success, many new cryptocurrencies came out with the lapp gimmicks.

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Why Bonfire was a bad bet

The problem with Bonfire and other cryptocurrencies like it is that it does n’t offer anything singular. Its entirely purpose is for the price to increase. just attend at the Bonfire whitepaper. here ‘s how the “ Why Bonfire ? ” section starts : “ bonfire differs from the lie of the De-Fi herd because it has a passionate team working full time to develop a fully-fledged ecosystem of applications surrounding the token. ” That ‘s a generic description that could be used for practically any modern crypto stick out. It ‘s like a person calling themselves a “ arduous actor ” on their sketch.

Since there ‘s nothing special about it, Bonfire relies on popularity. Bonfire ‘s subreddit even includes a pin post titled “ Do Your Chores ! ” It includes nine tasks for Bonfire supporters to complete every day to boost the token ‘s popularity, including :

• Search for “Bonfire” on Google, Bing, and Yahoo
• Search for “Bonfire” and “Buy Bonfire” on YouTube
• Vote for it on CoinMarketCap and CoinGecko
• Post about it on Twitter

Bonfire’s rise and fall

bonfire followed a conversant pattern to many doubtful cryptocurrencies. here ‘s a drumhead of what happened :

• There wasn’t much activity for the first few weeks. On May 3, its price opened at $0.000000047174. But it was starting to get people’s attention.
• By the end of the day, the price had more than doubled.
• On the morning of May 10, it hit an all-time high of $0.000000886399 — a 1,779% increase in just one week.
• That high didn’t last long, as it lost a third of its value by the end of the day.
• As of June 29, the price is $0.000000066780 — a drop of over 90% from its all-time high.

The nominal is technically still alive. It ‘s available on PancakeSwap, a democratic place for these kinds of recently launched projects that are n’t large adequate for major exchanges. none of the clear cryptocurrency exchanges have listed it, and they likely never will.

The right crypto investing mindset

Investing in crypto can be highly hazardous. We think investors should approach these assets like any early technological investment — with a long-run mentality and the expectation of ups and downs. The Fool realizes there may be opportunities for investors. We do actively recommend blue-ribbon cryptocurrencies to our community. But we encourage everyone to be well intimate anterior to investing to understand the likely risks and rewards .None If you ‘re wondering whether Bonfire has any screen of future, it ‘s doubtful. It already has n’t been able to follow its roadmap. Plans for the second draw of 2021 include launching a Bonfire app and holding weekly AMAs ( an acronym for “ ask me anything, ” meaning a casual for people to ask the Bonfire team questions ). There ‘s no app however, and while there have been episodic AMAs, they have n’t been hebdomadally. There are some patriotic supporters in the Bonfire subreddit, but a exploiter named Ao_n may have summed it up well by comparing them to “ the guys who continue to play music when the Titanic is filling with water. ” The moderators promptly deleted that mail, which they seem to do with any negative comments about Bonfire .

Be careful with your crypto investments

Cryptocurrency has gotten much more democratic this class. Because it ‘s easy for people to create their own, there has been a massive inflow of new tokens. The teams behind them normally spam social media with bizarre claims to lure in ampere many buyers as possible. Unless you manage to get in at the right time and sell before the price plummets, you end up losing money on these unproved cryptos. The best overture is to avoid projects like these entirely. here are a few bolshevik flags to look out for :

• The token’s price is a fraction of a cent.
• There’s a massive total supply, such as a quadrillion or hundreds of trillions of tokens.
• There’s a 10% transaction fee with half getting redistributed to existing holders.
• People are hyping the token on Twitter, Reddit, YouTube, or similar sites and talking about how the price will go up.

Bonfire is a holocene example of a cryptocurrency that had early success and then fell off a cliff. More such tokens pop up all the prison term, with EthereumMax and Baby Doge Coin being two late examples. It ‘s crucial to recognize tokens like these so that you do n’t waste your money on a bad investment.

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Category : Coin