A brand new cryptocurrency is preparing for a shot on the moon like Dogecoin, Bitcoin and Ethereum. However is it actually primed for distinguished success?
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Launched in March 2021 and having racked up multiple million customers already, SafeMoon is a blockchain-based cryptocurrency just 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, comparable to value volatility. To discourage day-trading, which generally causes nice value fluctuations, SafeMoon will reward long-term holders by imposing a price of 10% on every sale. Half of those charges shall be distributed to present coin homeowners, 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’re merely paid additional to carry.
“The purpose right here is to stop the bigger dips when whales resolve to promote their tokens later within the recreation, which retains the value 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 an alternative of steady burning, i.e. burning being the destruction of cash so as to add shortage and thus worth to the currency. SafeMoon believes that guide burning will give them extra management of the coin’s provide and value.
In response to 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 almost $4 billion.
In fact, 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 plenty of consideration, as it’s comparatively cheap and presents 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 concerning 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 objective.
What’s subsequent for SafeMoon?
The undertaking laid out a roadmap for the yr. The primary quarter let SafeMoon double the scale of its crew and begin engaged on a marketing marketing campaign. The following steps within the plan are the event of an app — although it’s nonetheless unclear for what objective other than facilitating SafeMoon buying and selling — a pockets and a few video games.
SafeMoon can be seeking to be listed on main cryptocurrency exchanges like Binance. Moreover, they wish to construct their very own change – the place they’d provide NFTs –, hold increasing their groups and open workplaces on the outdated continent. The final half of the yr shall be devoted to complete the SafeMoon change and open an workplace in Africa.
Critics of the SafeMoon undertaking
The undertaking 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 unattainable for different merchants to promote? All funds can be misplaced, and we’d 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 can be based mostly on somebody paying extra for the token than you probably did additional down the road. This may imply that early adopters can 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 make money off of a Ponzi doesn’t change the truth that it’s a Ponzi.”