Bonfire Crypto: The Coin, The Myth, The Flame
One of the many interesting cryptocurrencies of 2021 is the Bonfire crypto token which launched in May 2021 and caused a good portion of the trading market to go into a frenzy.
Everyone wanted a piece of the token and, within a week of hitting the market, daily trading volumes were averaging $75 million. It was so successful that all who had their bets on Bonfire were sure that this coin would be the next big thing.
Reality came crashing down a few months into the year when Bonfire burnt through well over 90% of its market value and sent the price of its token plummeting into the depths of the crypto abyss.
Typically, this means all who believe in the token do what they can to bring it back to life and campaign for its growth and rise back to fame. That wasn't the case; everyone moved on and now daily trading volumes barely make it past $500,000.
The question then became what went wrong?
The red flags were there, but many were much more concerned with the brand purpose of Bonfire. It is a bit irresistible not to invest in a project that claims they are on a mission to educate people about the gospel of blockchain technology. This is especially the case when the tokens are numbered one quadrillion!
While this looks like it's a good thing, it eventually showed that it wasn't because basic economics has it that scarcity or limited availability of a commodity determines its value because a constrained environment will allow demand and supply to work their magic.
The result of not adhering to this principle is why the Bonfire token is worth a fraction of 1 cent today.
There have been many community engagement and marketing tactics employed by different crypto projects, and more will be devised and implemented. However, the approach used by Bonfire is as ingenious as it is interesting: their Reddit group features a set of "chores" newcomers must do. These tasks involve following them on social media handles and doing simple tasks like searching "bonfire" or "bonfire crypto" on search engines and YouTube, thus building a digital reputation by hacking through organic search volume to seem legit.
What really stands out is how easily everyone moved on. Projects rarely see increases of 1,700% in their lifetime, let alone in less than a month after launch. It seemed revolutionary, until it didn't anymore. The large, inferno-like flames of the Bonfire token trading $75 million daily were reduced to mere candle flickers of $500,000.
Despite this, the Bonfire project is still going strong with its claims of advocating for blockchain education to reinforce the value of the token and brand altogether.
Finally, a feature of Bonfire that really is interesting is the decentralised autonomous organization that has voting rights to how the project operates and what directions it should take.
This may be a step in the right direction, but will they bounce back stronger and compete with the likes of Safemoon, charging towards global adoption and fandom? Only time will tell.
Author: Kalu Arunsi
Kalu Arunsi is a brand strategist who writes on Finance, Crypto, Tech and Marketing. His style involves breaking down complex topics into simple bite sized content, that way his readers enjoy reading as much as learning.