cryptocurrency graph in article about SafeMoon

What Exactly Is SafeMoon?

This cryptocurrency has its positives and negatives.
July 7, 2021
5 mins read

SafetyMoon, a blockchain-based cryptocurrency launched in March 2021 and boasting more than 1 million users, is similar to other cryptocurrencies like Bitcoin, Ethereum and Dogecoin. Still, there are quite a few major differences between them.

The founders found major issues like price volatility that affected most digital currencies and they decided it was “wise” to fix them. To beat down day-trading, which, in most cases, causes fluctuations in price, SafeMoon will impose a 10% fee on every sale to reward long-term holders. One-half of these fees will be paid out as an additional dividend to existing coin owners.

Speaking of what investors can do with a SafeMoon, there’s no clarity yet. In most cases, people are turned away from selling primarily because of the selling fee. And as it were, you are paid in excess to hold.

In a company whitepaper, SafeMoon explains that the goal is to prevent the more significant dips when whales decide to sell tokens later in the game, thus preventing as much price volatility. Whales refer to those who hold coins in large quantity.

To add value to the coin, the company has also chosen manual burns over continuous burns, where coins are destroyed to create scarcity. In SafeMoon’s opinion, manual burning will allow them to better control the price and supply of their coin.

SafeMoon’s price

Currently, the SafeMoon Coin has a value of $0.000005084 according to CoinMarketCap, and this is an increase from its launch value of $0.0000000010. There has been a fluctuation of its market cap between slightly under $3 billion and around $4 billion.

No doubt, the figures here do not make it one of the top coins like Dogecoin — it is currently ranked #202 in the top coins ranking — but it is attracting a lot of attention due to its relatively low cost and ability to reward holding.

Who created SafeMoon?

As far as Bitcoin Rush records, six people make up the creators behind SafeMoon. John Karoly, the CEO, used to work as an analyst for the Department of Defense. Thomas Smith, SafeMoon’s CTO, has worked with several blockchains and Defi companies in the past two years. Jack Haines, who is the COO, has merely listed the names of companies on his profile on LinkedIn; none has a website projecting its mission.

What’s next?

There’s a project roadmap for the year on the site. In the first quarter, SafeMoon expanded its team and started working on its marketing campaign. Next on the list is the development of an app — which may or may not be solely for facilitating SafeMoon trading — a wallet, as well as some games.

Additionally, SafeMoon is exploring the possibility of being listed on cryptocurrency exchanges such as Binance. They would also prefer to come up with an exchange for themselves — where they’d have no trouble offering NFTs — expand their teams and open various offices.

And finally, the year’s last half will be dedicated to finishing the SafeMoon exchange and expanding into Africa.

SafeMoon critics

The SafeMoon project is not without its critics. Significantly, it owns over half of the liquidity and has refused to fix it.

Why do they not simply sell everything and create a rug pull that makes sales impossible for other traders? We would probably only witness an exit scam, with all funds lost.

Also, in comparison to SafeMoon, Bitconnect turned out to be nothing more than a Ponzi scheme in which future profits would be contingent on later buyers paying more than you for the tokens. Early adopters are most likely to benefit from the system, while late entrants would be left with only scraps.

In the words of Lark Davis, crypto investor and influencer: “A Ponzi scheme can be profitable but still, it remains a Ponzi.”

Leave a Reply

Your email address will not be published.

Don't Miss