Although cryptocurrencies only appeared just over 10 years ago – and for a long time went unnoticed by many – it is now accepted that crypto is the future of the financial sector. Today, the cryptocurrency world is made up of about two dozen thousand digital coins, with many having very promising projects behind them. While some prefer to invest in more stable long-lived tokens like Bitcoin, Ethereum or Dogecoin, others are looking for new crypto projects with good prospects for further growth. However, the crypto industry is still a highly volatile market where new projects come and go literally every day, so finding something really worthwhile is a challenge for crypto enthusiasts and industry experts alike.
The high risks can mask great prospects in terms of profitability. And whether your goal is to make a quick buck from a small investment or you are looking for a long-term play, you should take a closer look at Bonfire. Coming onto the scene relatively recently, Bonfire is taking the world by storm by offering some innovations never seen before (according to the team behind). So, we are here to tell you what is Bonfire token, what is the project behind it and provide a Bonfire price prediction for the near term.
Features of the Bonfire Crypto Project
Launched in April 2021, Bonfire is a new cryptocurrency project using the Binance Smart Chain (BSC) blockchain network. The main idea of Bonfire is to create a decentralized social media for content creators (artists) that includes both communication tools and a marketplace where anyone can buy or sell NFT. BSC was chosen because it is a powerful technology developed by Binance, one of the largest crypto platforms in the world. BSC is a major competitor to Ethereum, with its platform serving as a basis for numerous crypto projects, many of which have failed due to ETH’s disadvantages, in particular its extremely high transaction fees. Also offering access to decentralized applications and smart contracts, BSC is a more promising technology for projects like Bonfire.
So, Bonfire is positioning itself as more stable crypto with a bigger future. Behind it is a team of talented IT experts, marketers and decentralized finance experts. However, to find out what this project is about is it worth to buy Bonfire crypto and what its plans are for the future, we looked at the official Bonfire crypto website to study its technical documentation and roadmap. Here are a few of the project’s goals:
- Launching a marketplace where artists can sell NFT without any restrictions. According to the team, they will succeed in creating the most unique frictionless NFT marketplace. However, at the time of writing, progress in this direction is still tenuous.
- The mobile app encompasses all the functionality of the Bonfire platform. According to the developers, the app’s functionality will include a trading platform, a wallet for storing Bonfire tokens, analytical tools to track capital gains, the latest market news, and notifications from the team behind the project. Essentially, the Bonfire app will provide a simple and seamless entry to the ecosystem for everyone. However, judging by the roadmap published on the project’s official website, there is still little progress.
- The launch of its own decentralized crypto exchange. As of this writing, the project is indeed close to launching an exchange.
The Bonfire team has been in negotiations with major crypto platforms to list their token as supported. However, the big players in the cryptocurrency world are selective about the coins they are willing to include in their lists. Therefore, most investors acquire a digital coin through PancakeSwap, a decentralized platform working mostly with small crypto projects.
What is Bonfire Token?
Launched in April 2021, Bonfire is a deflationary digital asset with automatic liquidity generation. According to the authors of the project, the value of the coin should gradually increase through the gradual burning of a portion of the total supply. This explains the very unusual name of the coin. Any Bonfire transaction is subject to a 10% commission. That means that if for example, you sell 10,000 coins, 1,000 of that amount will be deducted as commission. The 5% is used to provide liquidity, and the remaining 5% is distributed between the token holders proportionally to the number of coins they have in their crypto wallets. This provides a passive earning opportunity for Bonfire holders. So, here are the 3 main mechanisms that should theoretically stabilize the value of a coin (which is not the case to be honest):
- The burning mechanism that occurs with any transaction reduces the total supply, thereby increasing the value of the coin (which does not work according to the latest Bonfire price chart). This is implemented by moving a certain amount of coins to an unreachable wallet.
- A 10% transaction tax that encourages those who already have some tokens in their crypto wallet to keep their tokens.
- Making life more difficult for speculative traders who seek to take advantage of price manipulation (secured by a 10% transaction tax).
At the moment, Bonfire cryptocurrency still does not have any application other than as an investment vehicle (highly questionable in terms of price growth prospects) and as a transaction currency. As mentioned above, Bonfire aims to launch a marketplace for NFT trading, a decentralized crypto exchange for trading Bonfire tokens, as well as an app.
Bonfire Price History
In the first days after the launch in April 2021, Bonfire showed a tremendous growth rate, which attracted the attention of many crypto investors. However, the rise in the value of the coin stopped by mid-May 2021, followed by a sharp pullback with a loss of up to 99% of the value. An established downtrend followed, with a gradual decline in the value of the token. Although we have seen a slight uptick, the value of the coin has remained consistently low lately with $0.00000000482 per token at the time of writing. Many investors who believed in the project have called it their biggest mistake. Given such price history, Bonfire looks more like another fraudulent crypto fundraising project that was lost to SafeMoon and many other competitors (in fact, the idea of the NFT marketplace was not new and revolutionary at the time of Bonfire’s launch).
Bonfire Price Prediction
While cryptocurrencies are currently experiencing their worst times due to the Russian military invasion of Ukraine and the ensuing negative developments in the global economy, the drop in Bonfire’s value is of a very different nature. Thus, despite the serious market decline, such giants as Bitcoin or Ethereum are still afloat, showing positive dynamics from time to time. As for Bonfire price prediction, it is hard to say anything definite here as it increasingly resembles low-value tokens that got listed on PancakeSwap and didn’t get much support from the crypto community.
When we make token price predictions, we do not rely solely on technical analysis tools as they can give a highly inaccurate picture. One of the key factors influencing the future price of a crypto project token is its utility. However, many of the goals set in the project roadmap have not been achieved so far. In addition, Bonfire does not have any strong competitive advantages. For example, its burning mechanism is nothing new, and a 10% transaction tax is already used by some other cryptocurrencies. Given the coin’s negligible value today and the lack of any factors that could change the state of affairs dramatically, there seems to be no point in making a Bonfire price prediction.
Project Problems Likely Leading to Its Failure
The first problems with Bonfire’s roadmap implementation came just weeks after the launch of token sales. According to some crypto experts, the biggest blunder made by the team is that their app was not ready for launch in 2021. In addition, despite numerous promises, the project team did not participate in active discussions with crypto enthusiasts and potential investors, limiting themselves to publishing only videos, which was very rare. The lack of weekly AMAs is already a serious sign that something is wrong with the project. So, we have identified 3 main challenges that have hindered Bonfire’s growth:
- The team has demonstrated its complete inability to achieve the goals set in the roadmap. On Bonfire’s official website, you can discover two roadmaps regarding both the token itself and the ecosystem. Today you can see that most of the token roadmap targets have been met. However, as far as Bonfire World is concerned, things are much worse. The developers have still not reached the ‘Bonfire Mystery NFT airdrop’ stage, and there is no reason to expect it to happen in the near future.
- A sharp drop in the value of the coin after its initial rise. Having had just one exciting week when the price was growing at an incredible rate, Bonfire was disappointed because its value then plummeted by 90%, which negatively affected the market capitalization. The team behind the project – and some Bonfire supporters – said that the collapse of the entire cryptocurrency market was the reason for the sharp drop. However, there is a catch, because according to the creators of the project themselves, their token is protected from the storm. With a transaction tax and a token burning mechanism (to reduce the overall supply and thereby increase the token value), it has not become a safe haven from the negative phenomena in the cryptocurrency space. However, it is unclear what kind of shelter we can discuss when your token loses more than 90% in value in just a few days.
- Lack of competitive advantage. Do comparative analysis with some other similar projects and you will find that Bonfire offers nothing new. With a 10% tax already used by many other cryptos and very vague plans that look like they were copied from the whitepaper of other projects, Bonfire looks very unconvincing. There is probably an enthusiastic team behind the project determined to change the financial sector beyond recognition. However, similar wording can be found on the websites of most crypto projects.
So, it appears that Bonfire is not the best choice for those looking to invest in crypto for profit. Also, this token does not look like a great option for speculative traders looking to make money on short-term changes in value. There are plenty of deflationary digital assets with teams actively promoting them on social media. However, buying such coins is a lot like buying cheap stocks – only a few out of hundreds or even thousands will be able to demonstrate truly sustainable growth.
F.A.Q.
1. What is Bonfire crypto?
It’s a crypto project that aims to create a marketplace where artists can freely trade NFT. In addition, the creators of Bonfire plan to launch their own decentralized crypto exchange where the project’s native token will dominate.
2. What is the native token of the Bonfire project?
It is a deflationary digital asset that has several applications including providing passive income for holders and transaction execution. It uses Binance Smart Chain, a blockchain network that provides access to decentralized applications (dApps) and features lower transaction fees than key competitor Ethereum.
3. How do Bonfire holders earn passive income?
Each Bonfire transaction is subject to a 10% commission, where 5% goes to maintaining liquidity and 5% is distributed to token holders. The more coins you have in your wallet, the more of that 5% you get as passive income.
4. How has the price of the project’s native token changed historically?
In April/early May 2021, the digital asset showed excellent growth momentum, but then followed a sharp decline. Initial investors who chose to hold the tokens lost about 99% of their money.
5. What is the Bonfire price prediction for the near future?
In simple terms, Bonfire price prediction is uncertain as the project has faced many barely solvable problems. Firstly, it has proved unable to follow its roadmap. Secondly, the native token lacks any meaningful competitive advantage. Thirdly, after a sharp rise, the price of the coin has fallen dramatically.
6. Is Bonfire a good investment?
Today it is safe to say that this token is not an option worthy of attention for long-term investors and speculative traders alike. Judging by the project’s website, it looks like it has long been forgotten by its team.
