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Is Bonfire Token Legit?

There seems to be a brand-new popular cryptocurrency trending on social media every week. At the time of the creation of this token, many investors were wondering if the Bonfire token could be the next big thing in the crypto markets. 

They have been continuously looking for the next great thing they could invest in. The Bonfire token was one of the potential tokens that attempted to meet investors’ expectations, and some have been referring to it as the following SafeMoon. However, a similar number of people have been concerned that Bonfire may not be that safe. 

In this article, we will analyze the whole thing behind the Bonfire token and see if it is a legit project or if it is designed to steal people’s money.

What Is Bonfire Token?

Bonfire Token was launched in April 2021. According to its website, it provides holders with passive income for just holding the Bonfire token. If you buy in Bonfire, you may “see your gains rise” and get taxes when others sell.

When the Bonfire token was only a month old, even though it was a short amount of time, it already had a Twitter account that had grown to 43,000 followers. However, if you check their Twitter account now, there are over 63,000 people following their work.

On the other hand, it took it only two weeks to hit 100,000 holders. According to RecentCoin, there are over 321,000 holders right now.

On October, 20th the price of the Bonfire token is $0 and it has a lot of different domains in CMC and CG. However, some of them are down.

These are all the parameters we need to consider before concluding if the Bonfire token is a scam or not.

How does Bonfire work?

Bonfire works the same as several other tokens that use static rewards – a tax on sellers that is meant for rewarding its holders.

To explain it a little bit more in detail, you first need to know that every transaction has a 10% fee. 

For example, if someone sells 10 thousand Bonfire tokens, the fee would be 1 thousand. Half the fee (500 Bonfire tokens) is redistributed to all the holders of the Bonfire token. The other half goes to a liquidity pool, a collection of funds that makes it less complicated to trade Bonfire.

When it comes to static rewards, they are increasingly popular among new tokens. However, it can work out well only if the price rises or stays the same. If the price decreases, you will end up losing money, even after taking into account the rewards you received. Unfortunately, that’s what happens with most of these tokens.

How Do You Buy a Bonfire Token?

Now that you know what the Bonfire token is and how it works, you’re probably wondering how to buy Bonfire token. We recommend you use the Trust wallet, which uses over 25 million people to buy, sell, and exchange digital assets.

The whole process of buying a token like Bonfire can get a bit complicated, so here is a quick breakdown for you to follow.

You can find detailed instructions at tradecrypto.com.

Problems With Bonfire

We all saw that the Bonfire token would have specific problems from the very beginning. The Bonfire team failed to follow its roadmap after only two months. That was already a bad sign, but it didn’t stop there.

After just one spectacular week in May 2021, the price is down over 90%. The reason they cited for that drop is a drop in the entire market, which is ironic considering that the point of the whole Bonfire system was to protect its holders from those drops in the market.

Also, there isn’t anything unique about Bonfire compared to the other tokens that are saturating the market. Even in the “Why Bonfire” section, they did not state anything that cannot be said for other cryptocurrencies too.

Is Bonfire Token a Scam?

Even though the Bonfire token looks like a poor choice for cryptocurrency investment, it isn’t a scam. It is a legit transparent project, but with the problems listed above, excitement about the token disappeared too soon.

However, many things, including marketing trends in Crypto are changing. Just a week ago, the Bonfire team announced to its community on Reddit the plans for the Bonfire and what is the advantage of holding a Bonfire. Some members claimed that it was onto something, but whether it was sarcasm or an honest opinion is still a mystery.