The Crypto market is at its height right now. In increasingly shorter time intervals, all major cryptocurrencies have reached all-time high prices and lows as well.
As major a crackdown on cryptocurrencies happening worldwide right now, many analysts believe that it is good for Cryptocurrencies market as it brings maturity. Some analyst also believes that these crackdowns will bring trust factor in market as more and more authorities get involved in the previously unregulated markets.
Cryptocurrencies such as Dogecoin and Safemoon have made crypto more widely available. A number of new currencies are being launched to the crypto market with the intention of making money. ‘Bonfire Crypto‘ is a new cryptocurrency that has recently gained popularity. In this article, we’ll look at what a Bonfire Crypto is.
So, what is Bonfire Crypto?
Bonfire crypto is a cryptocurrency token that was released on the Binance Smart Chain Network on April 18th. Bonfire is an inflationary coin that works similarly to the Safemoon token, according to the Bonfire website. By charging those who choose to sell their coins and rewarding those who choose to hold it with extra coins. Safemoon popularized this approach, which is known as the static reward system. 5% of all Bonfire transactions are allocated to the public. Bonfire is still in its infancy.
As describe by the official Whitepaper on Bonfire crypto, Bonfire is a frictionless, yield-generating contract that allows users to take refuge from market volatility. The protocol was launched on Binance Smart Chain on April 18th, 2021 using an OTC presale method (referred to as BSC). The token contract uses a static reward mechanism in which 10% of each transaction is split into 2 parts:
- one part is awarded to holders
- while the other 5% is used to fuel the PancakeSwap decentralized exchange’s liquidity pool.
Because the tokens are permanently locked in the LP, the available supply is effectively reduced. The token was created with the goal of providing a community token with a self-sustaining revenue stream for its owner.
The notion of the static rewards system was developed by reflect.finance and popularized by Safemoon. Because of its extremely sustainable strategy, it’s an excellent alternative to the standard high-APY liquidity farms out there. The reward amount is contingent on the token’s volume in the marketplace, reducing early investors’ pressure to sell the token. Furthermore, the method encourages token holders to keep their tokens in order to earn taxes from market transactions, which are based on the percentage defined in the contract and dependent on the total tokens kept by the owner.
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Coinmarketcap Stat for Bonfire crypto during the time of writing this article:
|bonfire Crypto Price|
|Fully Diluted Market Cap||$70,038,093.14|
What is FireStarter in Bonfire Crypto?
Many people also wondering about the term FireStarter in Bonfire Crypto’s ecosystem. So, what is it? Well, as per the official whitepaper on bonfire crypto, The Bonfire team has created a one-of-a-kind Launchpad project called FireStarter. It is the second step in the development of the Bonfire dApp ecosystem, which will give the coin a variety of new applications.
FireStarter will give new projects with all the tools they need to reach out to potential investors via Initial Coin Offerings and Initial Decentralized Exchange Offerings. FireStarter is a platform that lets users invest in newly launched, thoroughly reviewed, and audited projects via a presale with a fixed token price, allowing them to purchase tokens at a lower price than the listing price.
So, is Bonfire Crypto risky?
Investing in any crypto is simply gambling, and there are no guarantees that the value of your investment will increase. It’s a high-risk investment with little history and little underlying value. There is also no guarantee that you will be able to convert your crypto assets back into cash, as this may be contingent on current market demand and availability. Furthermore, investing in younger cryptocurrencies rather than Bitcoin is riskier and leaves you vulnerable to scams.
While the designers of Bonfire crypto have not stated that this is a ‘Get wealthy quick’ coin, investors should be very cautious before investing in any cryptocurrency that is increasing in value simply because it is becoming popular.