Yet another cryptocurrency token is picking up momentum on social media, with Bonfire investors taking to Twitter to post its hashtag in an attempt to get it trending.
Bonfire is so new that its market data is not yet listed on major tracking sites such as CoinMarketCap.
However, the tracking sites Bogged and Poocoin both list Bonfire at around the $0.000000113 mark. The total value of all Bonfire tokens in circulation is around $85.5 million.
Although Bonfire has been out for less than a month, its official Twitter account has around 25,000 followers and its Reddit community has more than 11,000 members.
One post, which has been pinned to the top of the crypto’s Reddit forum by moderators, encourages investors to complete “daily tasks” to boost Bonfire’s online presence. These include repeatedly posting its hashtag on Twitter or typing its name into Google and YouTube so it appears in search data.
The post asks forum members to #DoYourChores and states: “Stop waiting on the developers to do your work … the community builds the coin.”
Bonfire was launched on April 18 through the Binance Smart Chain network. According to its “whitepaper”—a document setting out how it works—Bonfire operates in a similar way to SafeMoon, claiming to reward people who hold the currency by essentially taxing those who sell it.
This is known as a static rewards system. Bonfire’s whitepaper states: “The static rewards system is a concept that was pioneered by reflect.finance and popularized by SafeMoon.”
Five percent of every Bonfire transaction is redistributed to the rest of the investor community.
Bonfire’s development team says it is working to get an assessment from cryptocurrency security auditors such as CertiK.
New currencies may be keen to emphasize their safety credentials because of concerns about “rug pull” scams, in which crypto fraudsters deliberately crash a token’s value. Bonfire says it is protected from such activities because it has locked its tokens’ liquidity pool.
Bonfire sets out detailed instructions on how to buy the token on its website. Users must first download the MetaMask browser extension, which functions as a cryptocurrency wallet. Potential investors then have to use PancakeSwap to exchange existing tokens for Bonfire.
Investing in cryptocurrencies comes with a high element of risk, financial experts have warned. The market is known for price volatility.
A post about rug pull scams published on CoinMarketCap last August stated: “Investors need to be extremely careful and selective when it comes to the tokens they put their money into.”