SafeMoon ’ mho creators say it was designed with the purpose of encouraging long-run investment. Half of the 10 % charged during transactions is shared among long-run holders, and the early to a fluidity pool that is intended to stabilize the monetary value of SafeMoon, in contrast to Dogecoin, Shiba Inu Coin and a number of other cryptocurrencies that seemed on the surface to be either a jest or bogus. But just like Akita Inu, Dogelon Mars and other much smaller crypto breeds, SafeMoon appeared to be trying to cash in on Dogecoin ’ s popularity by investing in meme culture .
Because the fee for buying into SafeMoon goes back to its earlier investors, SafeMoon has been regarded by some — including one SafeMoon investor — as a “ Ponzi ” system — an allegation that SafeMoon ’ s CEO decidedly denies .
The project ’ mho founders say they designed SafeMoon for long-run investing, and the 10 % transaction fee is set intentionally high to discourage people from selling the coin and encourage long-run HODLers.
SafeMoon is considered to be among the riskier investments in the crypto earth. Like Shiba Inu, Safemoon has no detail manipulation and derives its value entirely from other investors buying in — which is why some have called SafeMoon a “ shitcoin. ”
hush interested in SafeMoon ? This Forkast.News explainer will help you learn more .
What is SafeMoon — and why is it famous?
SafeMoon is a cryptocurrency keepsake that was launched under BEP-20 tokens on the Binance Smart Chain ( BSC ) blockchain. In the blockchain ecosystem, there are decentralized finance ( DeFi ) platforms and centralized finance ( CeFi ) platforms. The DeFi ecosystem is not regulated by a central bank but the assets show publicly on the blockchain network while in the CeFi ecosystem, assets are being handled through an average exchange. The BSC blockchain incorporates SafeMoon to run in a CeFi ecosystem .
During the second gear quarter of this year, the price of SafeMoon rose after receiving endorsements from celebrities such as knocker Lil Yachty, YouTuber Jake Paul and democratic sports blogger Dave Portnoy .
By market capitalization, SafeMoon is presently ranked 117th largest of all cryptocurrencies, according to CoinGecko, while CoinMarketCap presently ranks SafeMoon as the 218th most popular out of all crypto, as of print time.
But both CoinMarketCap and CoinGecko agree that SafeMoon ’ s current price is more than 85 % lower than its all-time high earlier this class. CoinGecko says SafeMoon ’ s all-time high happened on May 11, while CoinMarketCap reports SafeMoon ’ south price acme as occurring on April 20 this year. ( To find out why these two leading cryptocurrency ranking sites sometimes report wildly unlike dates and numbers, please see this Forkast.News explainer on crypto mathematics and economics. )
History Of SafeMoon
SafeMoon is one of the crypto token standards designed to extend to Ethereum standards on the cryptocurrency ecosystem. SafeMoon was developed by six developers and launched on the BSC blockchain on March 8, 2021. The name was derived from the idiom, “ Safely To The Moon, ” which implies that the intention of the coin is not to rise alone but to rise safely. Since origin, the coin nowadays has more than 2.9 million holders, according to BscScan .
Core features of SafeMoon
- Reflection: The white paper of the project reports that SafeMoon holders are charged a transaction fee of about 5%, which is distributed among the holders of the coin.
- LP acquisition: The white paper also revealed that this second core component of the project charges transaction fees of about 5%, which will be issued to various liquidity pools on PancakeSwap and other platforms. Half of the 5% that goes to the liquidity pools are converted into Binance Coin (BNB) in order to guarantee the liquidity of the SafeMoon and Binance coin pair.
- Token burn: Another key feature of SafeMoon is its “token burn” — which decreases the quantity of SafeMoon in circulation, to be deflationary.
How does SafeMoon work?
Since its launch on March 8, 2021, SafeMoon has accumulated a market capitalization of about US $ 1.9 billion while Bitcoin has a market capital of about US $ 1.1 trillion .
Traders are compelled to pay a 10 % charge, with one-half of the money going to SafeMoon ’ s current holders and the other half going to a liquid pool ( in an attempt to better maintain price stability ) .
SafeMoon ’ randomness creators besides decrease the quantity of SafeMoon in circulation .
What are the main criticisms of SafeMoon?
SafeMoon, like many cryptocurrency coins, is a highly inquisitive asset with no built-in value. here are a few other risks to think about .
Volatility: SafeMoon ’ mho monetary value has been highly erratic since its plunge, increasing more than 20,000 % before plummeting more than 70 %. Because cryptocurrency coins have no intrinsic worth, your profit depends on what you paid and how much you can sell it for .
Regulation: Cryptocurrency coins are very fresh, and governments are merely now learning about them and their potential effect. Crypto deal has been banned by China owing to the fiscal dangers they represent and the inquisitive trade they encourage. Higher tax rates on crypto profits may potentially be a form of regulation .
Liquidity: For traders wanting to get in or out of SafeMoon fast, the fact that they discourage selling via the 10 % charge may make liquidity a problem. SafeMoon is traded on Binance and PancakeSwap, platforms that enable respective cryptocurrency coins to be traded .
Bottom line: Because of the centralized nature of validation of authority, SafeMoon, like all early tokens on BSC, is basically at the discretion of Binance. All ships, however, tend to rise with the tide. If Bitcoin continues to rise in this bull market, there ’ s a possibility SafeMoon will rise ampere good, and other bad investors may drive it flush higher .
What does the future hold for SafeMoon?
A roadmap of the SafeMoon team ’ sulfur goals for the approaching year, on the SafeMoon web site, is presently space .
A message on SafeMoon ’ s roadmap page says :