Launched in March 2021 and having racked up a couple of million customers already, SafeMoon is a blockchain-based cryptocurrency just like Dogecoin, Bitcoin and Ethereum, however with just a few key variations.
The founders famous some key points with many digital currencies that they needed to repair, corresponding to worth volatility. To discourage day-trading, which typically causes nice worth fluctuations, SafeMoon will reward long-term holders by imposing a price of 10% on every sale. Half of those charges can be distributed to present coin house owners, within the type of a dividend paid in further cash.
Whereas it’s nonetheless very unclear what SafeMoon will permits traders to do, the promoting price discourages folks from promoting. You might be merely paid further to carry.
“The aim right here is to stop the bigger dips when whales determine to promote their tokens later within the sport, which retains the worth from fluctuating as a lot,” SafeMoon defined in a company whitepaper. Whales is the phrase for big holders of a coin.
Moreover, the corporate determined to go for guide burns as a substitute of steady burning, i.e. burning being the destruction of cash so as to add shortage and thus worth to the foreign money. SafeMoon believes that guide burning will give them extra management of the coin’s provide and worth.
Based on CoinMarketCap, the SafeMoon Coin is value $0.000005084 as of this writing, up from its $0.0000000010 launch worth. Its present market cap has fluctuated between just below $3 billion and practically $4 billion.
After all, these numbers are removed from making it one of many prime cryptocurrencies like Dogecoin — it’s #202 within the prime cryptocurrencies rating as I write this — however it’s already attracting loads of consideration, as it’s comparatively cheap and gives a brand new perform to reward holding. Keep in mind, even our favorite canine foreign money began off at a small worth earlier than taking pictures for the moon.
Who’s behind SafeMoon?
We all know little in regards to the creators of SafeMoon, besides that there are six leaders. The CEO is a person named John Karony who was once an analyst for the U.S. Division of Protection. SafeMoon’s CTO, Thomas Smith, has spent the final two years working with a number of blockchain and DeFi organizations. The COO, Jack Haines-Davies, has solely listed firm names on his LinkedIn profile, although none of them appear to have a web site explaining their function.
What’s subsequent for SafeMoon?
The challenge laid out a roadmap for the 12 months. The primary quarter let SafeMoon double the dimensions of its workforce and begin engaged on a advertising marketing campaign. The subsequent steps within the plan are the event of an app — although it’s nonetheless unclear for what function other than facilitating SafeMoon buying and selling — a pockets and a few video games.
SafeMoon can be trying to be listed on main cryptocurrency exchanges like Binance. Moreover, they wish to construct their very own trade – the place they might supply NFTs –, preserve increasing their groups and open workplaces on the previous continent. The final half of the 12 months can be devoted to complete the SafeMoon trade and open an workplace in Africa.
Critics of the SafeMoon challenge
The challenge does have its critics, although. For instance, SafeMoon owns greater than 50% of the liquidity and refuses to repair it. What’s stopping them from promoting all the pieces and making a rug pull, making it not possible for different merchants to promote? All funds could be misplaced, and we might solely be witness to an exit rip-off.
SafeMoon has additionally been in comparison with Bitconnect, which turned out to be nothing however a Ponzi Scheme, the place any earnings made sooner or later could be based mostly on somebody paying extra for the token than you probably did additional down the road. This might imply that early adopters could be the primary beneficiary of the system, leaving solely the scraps for late joiners. As cryptocurrency investor and influencer Lark Davis mentioned: “Keep in mind, simply since you generate profits off of a Ponzi doesn’t change the truth that it’s a Ponzi.”