A brand new cryptocurrency is preparing for a shot on the moon like Dogecoin, Bitcoin and Ethereum. However is it actually primed for outstanding success?
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Launched in March 2021 and having racked up a couple of million customers already, SafeMoon is a blockchain-based cryptocurrency much like Dogecoin, Bitcoin and Ethereum, however with a couple of key variations.
The founders famous some key points with many digital currencies that they wished to repair, similar to value volatility. To discourage day-trading, which generally causes nice value fluctuations, SafeMoon will reward long-term holders by imposing a payment of 10% on every sale. Half of those charges will likely be distributed to current coin house owners, within the type of a dividend paid in further cash.
Whereas it’s nonetheless very unclear what SafeMoon will permits buyers to do, the promoting payment discourages folks from promoting. You might be merely paid further to carry.
“The purpose right here is to forestall the bigger dips when whales resolve to promote their tokens later within the sport, which retains the value from fluctuating as a lot,” SafeMoon defined in a firm whitepaper. Whales is the phrase for big holders of a coin.
Moreover, the corporate determined to go for handbook 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 forex. SafeMoon believes that handbook burning will give them extra management of the coin’s provide and value.
In keeping with CoinMarketCap, the SafeMoon Coin is price $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 almost $4 billion.
In fact, these numbers are removed from making it one of many high cryptocurrencies like Dogecoin — it’s #202 within the high cryptocurrencies rating as I write this — however it’s already attracting numerous consideration, as it’s comparatively cheap and provides a brand new operate to reward holding. Keep in mind, even our favorite canine forex began off at a small value 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 an internet site explaining their objective.
What’s subsequent for SafeMoon?
The challenge laid out a roadmap for the yr. The primary quarter let SafeMoon double the dimensions of its group and begin engaged on a advertising and marketing marketing campaign. The subsequent steps within the plan are the event of an app — although it’s nonetheless unclear for what objective apart from 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 want to construct their very own alternate – the place they might provide NFTs –, maintain increasing their groups and open workplaces on the previous continent. The final half of the yr will likely be devoted to complete the SafeMoon alternate 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 things 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 income made sooner or later could be primarily based on somebody paying extra for the token than you probably did additional down the road. This is able to 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 stated: “Keep in mind, simply since you make cash off of a Ponzi doesn’t change the truth that it’s a Ponzi.”