Bomb Money Update — Bomb Chain Coming
There is a new blockchain that has had very little fanfare except for a small group of people like myself. It sounds a bit like a cult when I put it that way but I’m just talking about Bomb Money’s upcoming official launch of the Bomb Chain on 9 January. The chain is already live but is not yet operational, this will come when the new mobile app is released and the bridge to other EVM compatible chains is operational.
Within the Bomb Money community there is much anticipation but you are not seeing the monster hype that you saw with the likes of Aptos, Arbitrum, and Optimism in 2022. Instead what you have is an ecosystem that has evolved to the extent that Bomb Chain became a natural progression. The direction has been to build then promote and may lack the tactics that are often employed to hype up a token. The promotion tactics are different because there has been more focus on mainstream investors (a more difficult market right now) more than the degen crowd (a crowd that often lacks any real loyalty).
Use Cases For $BOMB Expand
The team have been working very hard to both increase the demand for $BOMB and reduce the supply. This has come about by creating use cases for $BOMB that incentivise both purchasing the tokens. There are also initiatives in place that (at least temporarily) reduce the circulating supply.
Below are the current use cases for $BOMB.
- You can pair your $BOMB with $BTCB to do LP Bonding and purchase discounted $BOMB. This can allow you to earn “passive income” or grow your $BOMB position faster. It also builds up a more stable pool of liquidity.
- You can lock up your $BOMB for 3 months to earn 1.5 times your stake while also getting the new $BOMBSWAP token airdropped to your wallet. This offer expires on 9 January.
- Pair your $BOMB with $CZBOMB on CZPegs to earn $CZSHARE.
- Pair your $BOMB with $BITSHARE on BitBomb to earn $BITSHARE.
- Pair your $BOMB with $CZSHARE on CZPegs to earn $CZSHARE.
- If you’re willing to wait, you could deposit $BOMB into the XBOMB contract. When the boardroom prints, XBOMB holders will receive 20% of printed $BOMB. Given all the other immediate use cases, I would hold off on this option.
With the launch of Bomb Chain you will also have the following use cases:
- Pay for gas for transactions on Bomb Chain (this will make $BOMB deflationary when it trades below peg).
- Earn $BOMB rewards for being a validator on Bomb Chain.
- Liquid staking of $BOMB.
- Pair with $BOMBSWAP, $WBTC, or $BUSD to earn $BOMBSWAP.
More About Bomb Swap
Since the launch of CZ Pegs, the team have included a native swap site to make it easier and safer to transact the tokens in the ecosystem. I believe that all protocols should have their own localised DEX or at least an interface to the main swap site (e.g. PancakeSwap, Trader Joe, Quick Swap etc.). This will help to protect investors’ tokens. Too many times I see people get scammed on places like PancakeSwap where someone impersonates a genuine coin (I’m thinking especially of Animal Farm’s $AFD token). As an aside, I don’t think the “warnings” given by PancakeSwap are good enough.
Bomb Money have taken it a step further by building up a fork of Sushi Swap that will enable them to provide their own DEX solution on Bomb Chain. This is where Bomb Swap comes in. There is no documentation available yet but from my very brief discussion with the team, they have indicated that the tokenomics of the new $BOMBSWAP token will be similar to $SUSHI and $CAKE.
Bonus $BOMBSWAP tokens will be airdropped to people that lock up their $BOMB for 90 days by the 9 January. Below is a preview of the farms that will be available on launch. You will need to wait for the bridge to be operational to be able to use it. The APRs could be fairly high at the start and the auto-vaults could be a nice way to build up your exposures in the likes of $WBTC (Bomb Chain’s version of Wrapped BTC), $BUSD, $USDC, and $BOMB.
Beware of the Risks
As promised in my previous article, I want to highlight some risks related to the upcoming launch.
- Bomb Money remains a relatively small community compared with other plays. Make sure you are aware of this because liquidity is relatively thin in all tokens and can be subject to big jumps (up and down).
- There may be little/no interest in this chain initially. Again, don’t go in expecting a monumental price pump in the first week. The team have tried to be efficient with marketing in the bear market and their plans extend to 2025. They are looking to market a product, not just a promise.
- The $BOMB locking bonus is reliant on $BOMB getting over peg to print more $BOMB to pay holders. If this doesn’t happen, the Treasury will need to pay holders out which is not ideal. Counteracting this, they have had no trouble exchanging $BOMB in the LP Bonding but something to be aware of.
- I expect that people will go into Bomb Swap at launch chasing a high yield and then dump the tokens to cash out. Be wary of purchasing the token on the market.
- Bomb Money are beholden to market conditions like any other protocol. If we get some bad news then they will get hit like anyone else.
Final Thoughts
The evolution of Bomb Money has been quite fast. During this time they have gone from being a Tomb Fork that pegged to Bitcoin to a very broad ecosystem. It is also a protocol that have largely shunned ponzinomics. The $BOMB locking bonus could be seen as one if you want to be hyper-critical. There was also an offering of Nodes but Aaron has more or less sworn off them moving forward.
With all the use cases for $BOMB there is a strong possibility for a supply squeeze. None of this is guaranteed, especially in a bear market, but I am more than comfortable to deploy funds in this ecosystem. There is no need to FOMO into the ecosystem, if you do go in you can deploy modest amounts at a time to keep the price stable. The ecosystem is not short of swing traders that don’t mind “correcting” the price.
Disclaimer: None of what is written in this article constitutes financial advice. Investing in cryptocurrencies, and in particular decentralised finance, is high risk. What I write is not a recommendation to invest in the projects I discuss. I am not aware of your personal circumstances. Only invest what you can afford to lose. Make sure to do your own research rather than relying solely on my content.
Links
Bomb Money Homepage: https://www.bombmoney.com/
Bomb Money dApp: https://app.bomb.money/
An Important Note
Make sure to protect your crypto with a hardware wallet. I personally prefer Trezor but the Ledger is more versatile and can be used for more cryptocurrencies. If you don’t have a hardware wallet you can get a Ledger by using my affiliate link here.
Ledger Link: https://shop.ledger.com/?r=d7b7094a37a9
Trezor Link (no affiliate commission): https://trezor.io/compare