Bonfire Coin: Do You Invest Now?

Launched in April 2021, the Bonfire token was quick to find an audience. In one month, the price increased by over 1700%. Unfortunately, this success was fleeting, and its value has steadily declined since.

Now the question is: Will Bonfire reignite or continue to smolder?

What You Need to Know Before You Invest in Bonfire

Bonfire tokens were created to protect holders from price volatility in the crypto market. The idea is, if you invest in Bonfire coin, you have the benefit of “collecting taxes” when others sell. The idea caught the attention–and the wallets–of 100,000 holders who invested in the coin’s first month.

Every transaction has static rewards.

When someone sells Bonfire tokens, there is a 10% fee. Half of this fee is redistributed to the investors holding Bonfire coins. The other half of the fee is put into a liquidity pool on PancakeSwap (the decentralized exchange where you can buy Bonfire), making it easier to trade Bonfire tokens.

Essentially, if a person sells 10 million Bonfire tokens, 1 million tokens would be taken in fees. Then, half a million tokens would be redistributed to Bonfire holders. More people are taking interest in new tokens with similar static rewards, such as Safemoon. This type of system works quite well when token prices increase or remain the same. However, when the token price drops large magnitudes (which isn’t really uncommon given the current market), investors lose money–even after factoring in the earned static rewards.

Is Now the Time to Buy Bonfire?

It’s not uncommon to see a new coin debut on a crypto exchange each day. So how do you know when you should invest, or simply watch and wait? Understanding how the Bonfire tokens work is only one piece of the puzzle.

The primary use-case for investing in Bonfire is: you suspect that the price of Bonfire will increase in the future, making it more appealing to those who would buy and sell. Which, considering the value of many services highlighted in their recent whitepaper, is entirely possible. Two of their highlighted services are an NFT marketplace along with a decentralized cryptocurrency exchange. If the developers are able to make good on their promises, investor interest may rekindle.

It is possible that the spike in May 2021 was the only one we will see from Bonfire. Yet, on the other hand, it’s also possible that the real fun hasn’t even started with this token. Their website has an interesting roadmap; however, there are no dates listed at this time, so it’s hard to say for sure when we can expect to see movement again.

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