- SafeMoon Coin, what is it, how can investors purchase it?
- SafeMoon’s past and future prices.
- Functions of SafeMoon.
SafeMoon is one of the newer cryptocurrencies on the market, having been launched in the first quarter of 2021.
SafeMoon is one of the newer cryptocurrencies on the market, having been launched in the first quarter of 2021 SafeMoon had around 2.9 million holders in January 2022. The token's founders wanted a coin that would ensure “safe” gains. SafeMoon designed its products to resist volatility through offering rewards to its investors for holding their coins.
SafeMoon is a type of cryptocurrency that is based on human-based technology and business, their aim is: “expanding blockchain technologies for a brighter tomorrow”. SafeMoon refers to their community as “The SafeMoon Army” which is a deeply connected community who innovates for good. They are building blockchain, commerce, metaverse and NFT products to attempt at deriving new product values from already standing crypto technology and put it towards better use.
The SafeMoon Protocol V2 Token; a community based DeFi Token that is a part of SafeMoon’s expanding ecosystem.
Coindesk.com defines DeFi tokens as representatives of “a diverse set of cryptocurrencies native to automated, decentralised platforms that operate using smart contracts.” Recall that a decentralised cryptocurrency platform transfers the control and decision making from a centralised entity (organisation, individual or group) and is given to a distributed network and smart contracts. Recall that smart contracts are digital contracts which are stored on a blockchain, when predetermined terms and conditions are met, the programs are executed.
There are 4 Functions that occur when a SafeMoon trade occurs:
- Reflection: 4% of the transaction is distributed to all coin holders. This is in an attempt to lessen the problems with mining rewards. This happens in 2 ways: (a) The reward amount is dependent on the size of the purchase. (b) encourages token holders to collect higher payments based on number owned. This will attempt to prevent the earlier investors from selling their tokens en masse and being able to sway the price, like with Bitcoin.
- LP Acquisition: 3% of each transaction is added to liquidity. The automatic liquidity pool is seen as an advantage of SafeMoons coins, it creates a solid price floor for both buyers and sellers. The LP is meant to help with long-term stability, in addition, written in a smart contract there is a 10% penalty for sellers of the coin and 5% of this penalty is split between existing holders, this is in an attempt to discourage investors from selling their coins.
- Manual Burn: 2% of tokens are burnt. The burning of SafeMoon Tokens is manual instead of continuous, this is in an attempt to increase the value of the coins for long-term investors. It also increases transparency of the coin as the burns are announced and tracked publicly.
- Growth Fund: 1% is added to the SafeMoon Ecosystem Growth Fund.
The SafeMoon coin is designed to discourage selling, driving the price up over time and benefiting early investors and the owners.
There are some analysts who believe that early adopters will pump the coin and hype it up to drive the price up and then sell when they have made money.
The price history of SafeMoon has been a rollercoaster.
Since the coin was launched its price has risen by more than 140,000%, showing the huge momentum this coin has had. SafeMoon falls under the altcoin category, meaning that it is highly sensitive to movements happening on the wider crypto market. Hence, due to current general bearish market sentiment, it is not surprising that the coin has seen almost a 61% decline in its price over the last month.
Price predictions for 2022 will depend on two factors.
- Market sentiment and the broader crypto markets. We are seeing more of a link between the general stock markets and the crypto markets, this came to light when we saw both markets react to the announcements of rising inflation and rising interest rates. This is because the opportunity cost of holding cryptocurrencies and stocks increases as these yields rise, especially because the investments linked to the rising yields are considered safer than cryptos and stocks.
- The utility factors of the SafeMoon coin will affect the price, these utility factors will determine how they will manage the coin.
SafeMoon Crypto Price Chart
To purchase the SafeMoon coin
- investors will need to download the Trust Wallet App
- It is necessary to purchase an already established coin such as Binance or bowscoin.
- Click on the DApp tab on the Trust Wallet App, this allows you to find decentralised coins.
- Look for Pancakeswap - this will allow you to trade Binance or Bowscoin for SafeMoon tokens.
- The SafeMoon Tokens will be held in the Trust Wallet App going forward.
Sources: safemoon.com, coindesk.com, gobankingrates.com, Finance.yahoo.com, business2community.com, thetimes.co-uk.