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There are more than 7,000 cryptocurrencies on the market today, and they are increasing every day. It is difficult to know which cryptocurrencies to research and invest in. Popular currencies like Bitcoin and Ethereum have taken the world by storm with huge valuations. But not all cryptocurrencies will succeed. Many will fail, some are scams.
This article explores SafeMoon, one of the latest cryptocurrencies. You will learn about the history of the token, its current value, whether it is safe and whether it is a good investment. Will SafeMoon be one of the next big cryptocurrencies to break out in 2021?
SafeMoon is one of the newer cryptocurrencies to hit the market in 2021. This crypto project is a community-driven approach to decentralized financial systems. After the initial launch in the first quarter of 2021, there are now more than 2.5 million holders of the currency and 585.536 trillion coins in circulation, according to CoinMarketCap. The founders wanted a coin that would ensure “safe” gains and prevent the inevitability of bubbles.
SafeMoon crypto developers have a long-term vision for the future success of the cryptocurrency. Holders earn passive rewards over time, and penalties discourage selling.
Quick Stats:
- Current price: $0.000003
- Market cap: $981.88 million
- Market rank: 212
SafeMoon aims to resist volatility by rewarding investors who hold tokens. It has three simple functions: reflection, LP capture and burning.
Static rewards, known as reflection, attempt to correct the problems with mining rewards. It does so in two ways:
- The reward amount is conditional upon the volume being traded, which mitigates against selling pressure caused by early adopters selling their coins.
- It encourages those holding the tokens to collect higher payments based on the total number owned.
This static approach differs from traditional mining rewards. For example, with Bitcoin (and other tokens), early adopters earned more rewards for their mining efforts than latecomers because the reward value decreases over time.
That means early adopters generally have more crypto than new buyers. SafeMoon’s static reward approach attempts to mitigate the problem of early adopters selling their coins en masse.
According to the official white paper, the automatic liquidity pool is the “secret sauce” of SafeMoon. This function creates a solid price floor for both buyers and sellers.
The design is for long-term stability. The unusual feature of SafeMoon is the penalty for selling coins. For every transaction, the smart contract charges a 10% fee. Five percent of the fee is split among existing holders, encouraging investors not to sell their tokens.
According to the project’s white paper, the goal is to “prevent the larger dips when whales decide to sell their tokens later in the game, which keeps the price from fluctuating as much.”
Most cryptocurrencies undergo a process called token burning, which permanently removes tokens from circulation. This process is an attempt to create increased scarcity, and thus value. Some crypto projects perform continual coin burns from the start.
However, SafeMoon employs manual burns instead of continuous burns. The argument is that this process can implement a beneficial burn strategy for long-term investors. It also allows the burns to be announced and tracked publicly, leading to increased transparency.
Because SafeMoon is so new, there isn’t much historical data to go on. Currently, the price is about $0.000003. Soon after it launched, it saw a massive price jump to an all-time high of $0.00001399 on April 20, more than 1,560% higher than the previous week. However, the price dropped to $0.00001118 by closing that day and, except for a spike in May, has trended downward ever since.
According to data from CoinMarketCap, SafeMoon’s current total market capitalization exceeds US$98188 million, ranking 212th in terms of market dominance. Not bad for a new cryptocurrency that competes with more than 7,000 other tokens.
With all the hype for a new coin, it’s valid to wonder if it’s safe. Some analysts have some concerns with SafeMoon. Unlike some other crypto projects, SafeMoon just having their wallet and doesn’t have further announcement at the moment. The entire purpose seems to be to get people to buy it and drive the price up.
It could see more buyers in the coming months as the wallet gains more widespread use. Although more than 100,000 Android users had downloaded the wallet from Google Play by Oct. 1, according to BSC News, the iOS version just went live on the App Store on Oct. 6 — and shot up to #10 within 12 hours, SafeMoon announced in a tweet.
PancakeSwap is the only exchange SafeMoon lists on its website. It’s a decentralized exchange that lets you trade directly from your crypto wallet, which means you, not the exchange, are in complete control over your crypto assets. Of course, that means you are responsible for the safety and security of your wallet, and you won’t receive the benefits that some crypto exchanges offer. But, if you want 100% control of your crypto, it’s not a bad option.
Buying SafeMoon on PancakeSwap can be confusing. To be able to purchase it, you will need to buy BNB, or Binance Coin, then convert that to Smart Chain. You can then swap this for SafeMoon. Note that PancakeSwap imposes a $2,000 maximum on SafeMoon, according to Laptop Magazine.
Given that SafeMoon doesn’t do anything and the only future expectation of profits is that more people will continue to buy, it doesn’t seem like a good investment at the moment. The price has hovered at its current level since mid-September. It could be gearing up for a bounce, given the successful wallet launch on the App Store, or the floor could be broken and the price could continue to fall. Nobody knows.
Investing in cryptocurrencies can be extremely risky. Always consult a professional advisor and never trade money you can’t afford to lose.
Credit: gobankingrate.com
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