SafeMoon, which is notorious for its hefty fees and social media hype, is currently trading at an 85% discount to its all-time high. What does the future hold for SafeMoon?
SafeMoon is a newbie to the cryptocurrency market, noted for its significant volatility, ten percent transaction fees, and social media buzz. SafeMoon, like other well-known cryptocurrencies like Bitcoin and Ether on the Ethereum blockchain, is based on distributed ledger technology and was launched on the Binance Smart Chain blockchain in March 2021.
SafeMoon was created with the goal of promoting long-term investment, according to its developers. In contrast to Dogecoin, Shiba Inu Coin, and a number of other cryptocurrencies that appeared to be either a joke or bogus on the surface, half of the ten percent charged during transactions is shared among long-term holders, and the other half goes to a liquidity pool that is intended to stabilize the price of SafeMoon. However, SafeMoon appears to be seeking to bank in on Dogecoin's fame by investing in meme culture, much like the Akita Inu, Dogelon Mars, and other much lesser crypto breeds.
SafeMoon has been dubbed a "Ponzi" scheme by some, including one SafeMoon investor because the charge for purchasing into the company flows back to its previous investors.
The project's creators claim that SafeMoon was created for long-term investment and that the 10% transaction fee was chosen to prevent users from selling the coin and promote long-term holders.
SafeMoon is regarded as one of the riskiest cryptocurrency investments. Safemoon, like Shiba Inu, has no specific utility and gets its value exclusively from other investors purchasing it, prompting some to label it a "shitcoin."
SafeMoon still piques your interest? You may learn more by watching this Forcast.News explanation.
What is SafeMoon — and why is it famous?
SafeMoon is a cryptocurrency token that was introduced on the Binance Smart Chain (BSC) blockchain as BEP-20 tokens. Decentralized finance (DeFi) and centralized finance (CeFi) systems exist in the blockchain ecosystem. The DeFi ecosystem is not controlled by a central bank, but assets are visible on the blockchain network, whereas the CeFi ecosystem uses an intermediary exchange to manage assets. SafeMoon is integrated into the BSC blockchain for use in the CeFi ecosystem.
SafeMoon's pricing increased in the second quarter of this year as a result of celebrity endorsements from musician Lil Yachty, YouTuber Jake Paul, and prominent sports blogger Dave Portnoy.
SafeMoon is now the 117th biggest cryptocurrency by market capitalization, according to CoinGecko, and the 218th most popular cryptocurrency according to CoinMarketCap, as of posting time.
SafeMoon's current price, according to CoinMarketCap and CoinGecko, is more than 85% lower than its all-time high earlier this year. SafeMoon's all-time high was on May 11, according to CoinGecko, while SafeMoon's price peak was on April 20 this year, according to CoinMarketCap. (See this Forcast. News tutorial on crypto math and economics to see why these two prominent cryptocurrency ranking sites occasionally post dramatically different dates and statistics.)
SafeMoon's Background
SafeMoon crypto token standard that aims to bridge the gap between Ethereum and the cryptocurrency ecosystem. On March 8, 2021, SafeMoon was released on the BSC blockchain by six developers. The name comes from the phrase "Securely To The Moon," which emphasizes that the coin's goal is to ascend safely rather than just rise. According to BscScan, the currency has over 2.9 million holdings since its launch.
SafeMoon's main characteristics
1. Reflection: According to the project's white paper, SafeMoon coin holders are paid a transaction fee of roughly 5%, which is split among the currency's holders.
2. LP acquisition: According to the white paper, the project's second major component charges transaction fees of around 5%, which will be distributed to multiple liquidity pools on PancakeSwap and other platforms. To ensure the liquidity of the SafeMoon and Binance coin combination, half of the 5% that goes to the liquidity pools is changed into Binance Coin (BNB).
3. Token burn: Another important characteristic of SafeMoon is its "token burn," which deflationary reduces the amount of SafeMoon in circulation.
What is the mechanism behind SafeMoon?
SafeMoon has a market capitalization of roughly US$1.9 billion since its introduction on March 8, 2021, whereas Bitcoin has a market capitalization of about US$1.1 trillion.
Traders must pay a 10% fee, with half of the funds going to SafeMoon's present holders and the other half going to a liquidity pool (in an effort to better maintain price stability).
The designers of SafeMoon also reduce the amount of SafeMoon in circulation.
What are the most common SafeMoon criticisms?
SafeMoon, like many other cryptocurrency currencies, is purely speculative and has no intrinsic value. Here are a few other dangers to consider.
SafeMoon's price has been extremely volatile since its inception, rising more than 20,000 percent before dropping more than 70%. Because cryptocurrency coins have no inherent value, your profit is determined by how much you spent on them and how much you can get for them when you sell them.
Cryptocurrency currencies are still relatively new, and governments are only now learning about them and their potential impact. China has outlawed cryptocurrency trading due to the financial risks it poses and the speculative trading it encourages. Increased tax rates on cryptocurrency revenues might be viewed as a form of regulation.
Liquidity: For traders who need to get in and out of SafeMoon quickly, the fact that they discourage selling with a 10% fee may provide a difficulty. SafeMoon is traded on Binance and PancakeSwap, two marketplaces that let you exchange several digital tokens.
Bottom line: SafeMoon, like all other BSC tokens, is effectively at Binance's discretion due to the centralized structure of proof of authority. However, all ships tend to rise with the tide. If Bitcoin continues to increase in this bull market, SafeMoon might follow suit, and other speculative investors could push it even higher.
What is SafeMoon's outlook for the future?
The SafeMoon website now has a blank roadmap of the team's plans for the future year.
According to a notice on SafeMoon's roadmap page:
