Safemoon could be a cryptocurrency that attracted attention when its value skyrocketed in the Gregorian calendar month. It was designed to reward long-run holders and charge sellers a ten % fee, with a part of that fee going back to existing holders. Launched in the spring of 2021, safemoon secures a revolutionary idea. The project was designed to require a number of the volatility out of the crypto market and reward long run token holders.
Its price shot up in April 2021. However, it has since borne back with investors concerned concerning the fee structure and finding a real-world use for the digital currency.
Rise of Safemoon crypto project
SafeMoon lists a team of six leaders. At the highest is operative officer|corporate executive|business executive} John Karony, who antecedently served as AN analyst for the U.S. Department of Defense, per his LinkedIn profile. At the side of SafeMoon’s chief technology officer Thomas Smith and community manager Trevor Church, he is additionally engaged in a freelance computer game studio referred to as TANO, a signifier for “technically a brand new operation.”
Smith has spent the past two years operating with completely different organizations on blockchain and suburbanized money products. SafeMoon’s chief operating officer, Jack Haines-Davies, based mostly within the United Kingdom, lists two corporations on LinkedIn, LikeandShare and mount Phillips Global, as his former employers. It’s unclear what those corporations do.
Safemoon describes itself as a suburbanized finance (DeFi) token. This suggests it’s a part of an alternate money system, sanctioning trade on peer-to-peer chain networks while not the intervention of centralized systems similar to banks or governments.
Like bitcoin and alternative digital currencies, it operates on a blockchain network.
However, the key distinction between a safemoon token and other cryptocurrencies is that investors are inspired to hold, not sell, their tokens.
How actually the cryptocurrency project works?
Safemoon may be a cryptocurrency, which are digital currencies that exist entirely online and hope to be used as a medium of exchange. Like many well-liked cryptocurrencies equivalent to Bitcoin and Ethereum, Safemoon is steam-powered by distributed ledger technology such as blockchain. Safemoon was created on the Binance good Chain blockchain and solely encompasses a market cap of approximately $1.3 billion (as of Sept. 2, 2021), compared to about $930 billion for Bitcoin.
Safemoon was designed in a way to encourage semi-permanent investment and discourage selling. It will do this by charging sellers a ten p.c fee, with half the fee attending to Safemoon’s existing holders and {also the} partner to be utilized in a liquidity pool.
Blockchain security firm CertiK found through an associate audit of Safemoon that its house owners acquire tokens created from the liquidity pool, giving them management over tokens created as a part of the fee. CertiK flagged this as a significant issue in its report and suggested Safemoon improve its security features.
Safemoon’s developers also manually reduce the quantity of Safemoon in circulation frequently in a trial to cut back provide and increase the price. The value did soar shortly when being introduced in March, reaching an incomparable high of $0.000014 on Gregorian calendar month 20, in keeping with CoinMarketCap. It’s since fallen around eighty p.c from its peak.
What does the project aim for?
SafeMoon has set out a road map for the year. Within the initial quarter, the corporation mentioned that it had doubled the dimensions of its team and begun a selling campaign.
Next, the company plans to finish a SafeMoon app (though it’s unclear what that app can do), a wallet, and games. It conjointly says it plans to explore permitting mercantilism of its currency on exchanges like Binance, begin building its exchange, expand its team by 35%, and establish a U.K./Ireland office.
Within the half of the year, the company said it plans to complete its SafeMoon Exchange associate degree and open an African-based SafeMoon office.
Should we pour some money into Safemoon?
Choosing to take a position in SafeMoon could be a personal call that ought to be made supporting what proportion of risk you’d prefer to take. The success of SafeMoon depends on Binance, the SafeMoon team and no matter what community is made around it.
A calculated investment in SafeMoon would require the capitalist to consider the centralization of the Binance good Chain and the way much management Binance has over it. It might conjointly require a level of religion within the legitimacy of the SafeMoon team that has very little proof of previous success. In contrast, individuals got to get their beginning somewhere. A healthy dose of skepticism will go an extended way.
SafeMoon, besides all alternative tokens on the Binance good Chain, is effectively at the whim of Binance with the centralized nature of proof of authority. Suppose Satoshi Nakamoto came back and created direct edits to Bitcoin’s code and had it enforced on each mineworker and node within the network. In that case, it might not be redistributed and would cut back on religion in the system.
In its current stage, associate degree investment in SafeMoon would be pure speculation because it isn’t a verified team or project. That said, all ships tend to rise with the tide. Should Bitcoin continue on its flight during this market, there may well be an opportunity SafeMoon can increase as well, and alternative speculative investors might push it higher. However, these are risky bets to make.
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