Safemoon crypto

What is SafeMoon Crypto?

Introduction to SafeMoon Crypto

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Image by Muhammad Salman from Pixabay 

SafeMoon crypto is one of the most recent cryptocurrencies to make its debut earlier in 2021. This cryptocurrency concept is a decentralized financial system that is driven by the community. After its initial debut in the first quarter of 2021, the currency now has over 2.3 million users. The founders wanted a coin that would guarantee “safe” earnings and avoid bubbles from forming.

SafeMoon crypto’s creators have a long-term goal for the cryptocurrency’s future growth. Over time, holders earn passive benefits, and penalties for selling.

Characteristics of SafeMoon Crypto

SafeMoon crypto is based on 3 simple functions, and they are as follows;

1.      Static Rewards

According to the White paper published by SafeMoon crypto in their official website;

Static incentives fix a slew of issues. To begin with, the amount of the incentive is contingent on the volume of the token being traded. This approach tries to relieve some negative sell pressure on the token that has been caused by early adopters selling their tokens after harvesting insanely high APYs. Second, the reflection mechanism encourages holders to keep their tokens in order to earn bigger kick-backs, which are calculated as a proportion of the total tokens owned by the owner.

The static rewards, are an attempt to address the issues of farming rewards. It tries to accomplish this in 2 ways:

  • The amount of the reward is reliant on the number of trades, which reduces the selling pressure produced by early adopters selling their coins.
  • It promotes holders of tokens to receive larger payments based on the overall number of tokens they own.

Unlike typical mining pay-outs, this approach is static. The people who adopt the coin earlier rather than later received larger benefits for their mining efforts than the people who adopted the coin later with Bitcoin (and other tokens), because the reward value diminishes over time.

Because of this particular issue, the people who adopted earlier will have more crypto than the people who buy it later. But the static reward system used by SafeMoon aims to address the same mentioned issue of early adopters selling their coins in bulk.

2.      LP Acquisition

The self-directed liquidity pool, according to the official white paper, is SafeMoon’s secret sauce. Both buyers and sellers of the token would benefit from this function because it establishes a stable price floor.

Long-term stability is the goal of the design. The penalty for the holder who sells their SafeMoon crypto is a fascinating aspect of SafeMoon. The smart contract levies a 10% fee for each transaction. Existing holders receive 5% of the fee, which encourages investors not to sell their tokens.

The idea, according to the SafeMoon crypto’s white paper published, is to avoid greater dips when whales (term used in crypto world to identify the token holder who is holding huge number of tokens/cryptos) decides to sell their tokens later in the game, resulting in less price fluctuation.

3.      Manual Burn

First, let’s understand what is coin burn in cryptocurrencies?

When tokens are delivered to an address where they can’t be spent, it’s called a coin burn. Because no one has access to the private key linked with the address, the tokens are taken out of circulation, thus reducing the token’s supply. The coin burn address is publicly known, allowing anyone to verify that the tokens have been burnt.

This method is used by most of the cryptocurrencies. This technique’s goal is to promote insufficiency and, as a result, price of the token. Some Cryptocurrency Project from the very beginning performs continuous coin burns.

Meanwhile, SafeMoon crypto uses manual burns instead of continual burns. This system, as per the argument, can be used to implement a favourable coin burn strategy for enduring investors. It also permits for public announcement and tracking of the coin burns, which would result in improved transparency.

SafeMoon Crypto price

There isn’t much historical data to go on because SafeMoon crypto is so young. The SafeMoon crypto price is currently around $0.000002942. Its price soared to an all-time high of $0.00001399 on April 20, more than 1,560 percent more than the previous week, just after its introduction.

According to CoinMarketCap, SafeMoon’s current Fully Diluted Market Cap is approximately $2.49 billion, putting it at 206th in terms of market domination. That’s a very good figure for a new cryptocurrency, specially when it is competing with 5,000 others. All the SafeMoon crypto price are approx. and recorded during the time of writing this article, and it may vary in different times.

So, is SafeMoon Safe to invest?

With all the excitement surrounding a new coin, it’s natural to question if it’s safe. SafeMoon crypto has raised some eyebrows among analysts. SafeMoon isn’t like other crypto projects, like it doesn’t actually perform anything. The whole point appears to be to persuade people to buy it and inflate the price.

Some analysts believe it’s a pump-and-dump scheme.

The token is intended to discourage selling, as previously stated. Because of this, the price is likely to rise over time, benefiting the owners and early adopters. The social media buzz and excitement surrounding cryptocurrency is pouring gasoline on the fire.

Some analysts even feel it’s a “pump-and-dump” scheme. This means that those who purchased the coin early will “push” it up, encouraging others to do the same. Then they’ll sell or “dump” their coins to an unsuspecting public, bringing the price back down.

So, we don’t know if it’s actually safe to invest or not. But as the days goes by, SafeMoon crypto certainly seems trying to build the trust amongst the people with various efforts. Whether with the more involvement of the people behind the SafeMoon crypto being active on social media or by performing independent audits.  Nevertheless, all the cryptocurrencies have to go through the same hurdle and that is to gain trust amongst the people. Whether SafeMoon will be able to do it or not, only the future will tell.  

But one thing for sure is whether we should invest in SafeMoon crypto or not, one thing we all should do is to keep an eye on.

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