BONFIRE Risk Assessment
As described on their website, Bonfire is a frictionless, yield-generating contract that allows you to seek shelter amidst the chaos of the market. The project’s token contract employs a static reward system where 10% of every transaction is split into two parts and one part is distributed to holders, while the other 5% is used to fuel the liquidity pool on the PancakeSwap decentralized exchange.
The tokens are permanently locked in the LP, effectively reducing the available supply. The token was launched with the idea of creating a community token with a self-generating income mechanism for its owner.
As mentioned in the project’s whitepaper, Unlike other protocols on the market, the Bonfire contract does not employ a manual burn wallet (meaning the developer does not control a significant portion of tokens that can negatively impact the marketplace) and the community takes great pride in the project’s excellent token distribution. However, this is in contrast to some of the things we discovered when we dug deeper into the project.
Findings
⁃ Initial liquidity was burnt
⁃ Details of some of the project’s team members were announced on the website. However, the core team like the CEO/Founder, CFO,CTO and the tech lead was not released.
Risk warnings
No major high-risk warnings were found. However, from our research, here are some of the red flags that are associated with this project that we found out:
- Contract deployer transferred 15% of the supply to 15 addresses before listing the project on pancake swap (of which these wallets are cashing out)
⁃ No proper security audits were done on the project’s smart contract and if any was done, the details are not released.
⁃ Contract is not verified on BSC
⁃ Project founder identity not revealed
Conclusion
Since we are in the ALTs season, several projects with shady motives are springing up in the blockchain/cryptocurrency niche. We strongly advise that proper research and due diligence is done regarding the project’s use case and core team before you invest your money. If you see that it’s too good to be true, trust your instinct and move on.
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