More than nine thousand cryptocurrencies are traded on the cryptocurrency market. Among them, there are both potentially successful and very dubious projects. It is very difficult to distinguish between them in the early stages of development, especially when it comes to young projects. One of such projects is SafeMoon, a coin available also on LetsExchange – crypto exchange online
What is Safemoon?
The SafeMoon project was launched in the first quarter of 2021. It focuses on decentralized financial systems. The developers wanted to create a coin that would be a “fuse” against financial bubbles.
The project is aimed at the long-term development of the cryptocurrency market. The main idea of the project is to encourage owners of digital assets to hold coins.
Project Features
The SafeMoon project is designed to counterbalance market volatility. The network has a system of rewards for storing coins. This is implemented in the following way for this, the LP Acquisition, Burn and Reflection functions are provided in the network.
Reflection
This is a system of static rewards, which is fundamentally different from the reward of miners. The amount of remuneration is calculated depending on the volume of trade. This reduces the pressure from sellers, which is provoked by the sale of coins by early investors. This encourages coin owners to accumulate funds.
The traditional mining reward looks different. In the case of bitcoin and other coins, the amount of reward for early adopters was the highest and decreased over time. That is, early adopters received more coins than any new buyer. SafeMoon’s static approach deters the massive sale of assets by early adopters.
LP Acquisition
This feature is designed for long-term stability. It creates a fixed minimum coin price for all market participants. The SafeMoon network has penalties for selling coins. A 10% commission is charged for each transaction. 5% commission is distributed among token holders.
Burn
Burning means the destruction of part of the tokens. This is one way to create scarcity and add value to an asset. SafeMoon performs this process manually. This process is most beneficial for long-term investors.
How much does SafeMoon cost?
The coin was launched in the spring of 2021. On April 20, the price jumped to an all-time high of $0.00001399 per coin. The increase was over 1500%. By the close of the day, the price fell to 0.00001118. And from that moment on, it decreased until stabilization in the range of 0.000001501 – 0.000003164. The exception was May when the price of the coin was around 0.000009521.
At the time of writing, the coin is trading at $0.000001701 and is ranked #214 in the CoinMarketCap ranking. The total capitalization is approaching $1 billion. This is not a bad achievement for a beginner coin.
How secure is SafeMoon
The SafeMoon project plans to expand to include the non-fungible token market in the future and enable users to create their own cryptocurrency projects. The developers of the protocol plan to launch a decentralized exchange and expand partnerships. However, some analysts doubt SafeMoon. So far, SafeMoon is doing nothing and looks like its goal is to get people to buy coins and raise the price. There are fears that this is nothing more than another meme coin
Where to buy SafeMoon?
SafeMoon is traded on several exchanges PancakeSwap (V2), MEXC, Bitrue, Gate.io, mainly paired with USDT. SafeMoon exchange for fiat currencies is not provided.
Is SafeMoon a good investment?
Since there are no active actions from the SafeMoon team yet, the coin looks like an exclusively speculative asset and an extremely dubious investment. The outlook for the asset is unclear. The cryptocurrency market is unpredictable and therefore the decision to invest in one or another cryptocurrency is made solely at your own peril and risk.
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