Recently, altcoins have been in the spotlight as cryptocurrency investors search for the next Shiba Inu among the pack. SafeMoon, however, is a popular and deft cryptocurrency, one which might just be the next Shiba Inu.
SafeMoon, like Shiba Inu, is a meme-coin that primarily trades on social media sentiment. It, like most meme currencies, trades for fractions of a cent and is highly volatile.
Key Takeaways
• SafeMoon is a token, specifically a BEP-20 token which runs on its own blockchain framework.
• SafeMoon Tokenomics enables investors to comprehend what SafeMoon may be used for and how much it might be worth in the future.
• Miners burn tokens like SafeMoon by sending them to a verifiably unspendable address or a burn wallet. The burning procedure uses few resources (apart from the burnt coins) and guarantees that the network stays active and agile.
•SafeMoon tokens are manually burned by the project’s creators regularly to control its supply.
The SafeMoon token’s price has been on the rise, gaining more value thereby increasing its market cap.
Here is the price of Safemoon today.
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Let’s examine Safemoon’s historical price movement.
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It is evident that this cryptocurrency is thriving well, thus this article will highlight all you need to know about SafeMoon.
SEE ALSO: 5 Best Places To Buy Safemoon Online
What is SafeMoon?
SafeMoon is a BEP-20 token that was launched on the Binance Smart Chain (BSC) ecosystem on March 8, 2021. BSC is a centralized finance (CeFi) ecosystem that competes with Ethereum’s decentralized finance (DeFi).
According to Binance, cryptocurrency is made up of three main components. The first step is known as reflection. This is where SafeMoon transactions are charged a fee, which is dispersed among token holders.
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The second is a fee levied on trades that are routed through Pancake Swap and other platforms to various liquidity pools.
The third component is a token burn, which happens with each trade. The proportion of each transaction that is burnt is not specified either in the whitepaper or on the rest of the website. It just states that transactions are taxed at a 10% fee, which is split two ways…
5% is allocated to reflection awards, while 5% is allocated to liquidity pools. To ensure the liquidity of the SafeMoon and Binance Coin pair, 2.5% of the 5% paid to liquidity pools is converted into Binance Coin (BNB).
The SafeMoon whitepaper notes that the team intends to do manual token burning. Having burns managed by the team and elevated depending on successes helps to reward and inform the community.
SafeMoon intends to adopt a burn strategy that is both useful and rewarding for people who are committed to it in the long run. With all of the excitement surrounding a new coin, it’s natural to worry if it’s secure.
SafeMoon has raised some eyebrows among experts. SafeMoon, unlike several other cryptocurrency ventures, accomplishes nothing. The main point appears to be to persuade others to buy it and push up the price.
The token is intended to deter selling. Because of this, the price is expected to rise over time, rewarding owners and early adopters. The excitement and hysteria around cryptocurrency on social media heightens it even more.
Some experts even go so far as to suggest it’s a pump-and-dump strategy. That is, those who purchased the coin early will “push” it up, encouraging others to do the same.
Then they will sell or “dump” their coins onto an unsuspecting audience, causing the price to fall again.
Is SafeMoon a Coin or a Token?
SafeMoon is a token, specifically a BEP-20 token. The primary distinction between a coin and a token is that a coin is constructed on its own blockchain, but a token is not.
SafeMoon is based on the Binance smart chain blockchain and hence lacks its own blockchain.
Another distinction between tokens and coins is what they symbolize. Tokens can represent assets or deeds, but cryptocurrencies coins are basically digital copies of money.
Tokens may be purchased using currency, but certain tokens have a higher worth than others. As an example, consider a company’s stock.
However, because there are frequent constraints on where you may use a token, it lacks the liquidity that a currency provides.
To put it simply, a token symbolizes what you possess, but a coin represents what you are capable of having.
The distinction between a token and a coin isn’t huge, but it may cause a tremendous problem if it’s neglected repeatedly.
Paying attention to what you’re buying is a simple way to determine which to use. If it’s a product, you’ll almost always require coins. If it’s a service, you should be able to utilize utility tokens.
Tokens existed long before cryptocurrency coins existed on a larger scale. Even now, it has very little to do with cryptocurrency.
Finally, one intriguing aspect about tokens is how simple it is to manufacture one. Some networks, like Ethereum, give templates for you to brand your tokens and begin trading.
As a result, even those with little to no technical understanding may become market makers. This sort of behavior is prevalent in decentralized markets such as Uniswap.
How SafeMoon Burn Works
Miners burn tokens like SafeMoon by sending them to a verifiably unspendable address or a burn wallet.
This procedure uses few resources (apart from the burnt coins) and guarantees that the network stays active and agile.
Miners may burn either the native money or the currency of an alternative chain, depending on the implementation. In exchange, users earn a payout in the blockchain’s native currency token.
SafeMoon tokens are manually burned by the project’s creators regularly to minimize supply. SafeMoon burning has averaged $7000 in token value every day over the previous seven days.
At that rate, it might take another 64 years to completely burn all of the SafeMoon tokens. However, this is simply a speculative scenario that is dependent on token consumption and trade.
The SafeMoon team eliminated over 142 million tokens from circulation per minute, according to SafeMoon Burn, a website that tracks the burning of SafeMoon tokens.
Below is a screenshot of the previous stats. Note that these figures change on a 24 hours basis.
Every day, this equates to 81 billion SafeMoon. So far, 42.802% of the total token supply has been burned, out of a total supply of 100%. At this pace, SafeMoon may face a supply shock.
You can find out more about SafeMoon Burn here.
How SafeMoon Wallet Works
The Safemoon wallet, which was recently introduced, is simple to use, even for crypto and blockchain newcomers.
The SafeMoon’s calculator will break down which tokens you’re buying, allowing you to enter the realm of decentralized finance.
The SafeMoon wallet software contains all of your favorite cryptos, including Ethereum, SafeMoon, and many popular crypto tokens.
The simplified layout of the Safemoon wallet software will assist you in tracking markets and making an educated decision about your crypto purchase.
With the SafeMoon wallet Swap, you can exchange one token for another with the press of a button.
You’ll also be able to manage your portfolio from a single interface that displays your balances, tokens, and current market movers. Ledger live currently does not support Safemoon.
How SafeMoon Reflection Works
Static rewards, sometimes known as reflection, aim to address issues with mining payouts. It accomplishes this in the following ways:
The reward amount is conditional on the volume exchanged, which mitigates selling pressure produced by early adopters selling their coins and encourages those retaining the tokens to earn bigger payouts depending on the overall number possessed.
This method varies from usual mining payouts. For example, because the reward value of Bitcoin (and other tokens) diminishes with time, early adopters received higher incentives for their mining efforts than latecomers.
As a result, early adopters often own more cryptocurrency than new purchases. SafeMoon’s static reward model aims to alleviate the problem of early adopters mass-selling their tokens.
How SafeMoon Tokenomics Works
Tokenomics, in general, is simply attempting to understand the demand and supply characteristics of a cryptocurrency, in this instance, SafeMoon.
SafeMoon Tokenomics enables us to comprehend what SafeMoon may be used for and how much it might be worth in the future.
The creators of SafeMoon stated in the crypto’s whitepaper that they intend to address some of the issues that plague other digital currencies, such as price volatility.
SafeMoon intends to prevent day trading of its coin while rewarding long-term holders by imposing a 10% incentive on each sell.
Half of the fees collected go to existing coin owners, who get a type of dividend in the form of extra coins.
How is SafeMoon Redistributed?
SafeMoon includes various distinctive features, such as a smart contract that costs a 10% exit fee to holders who wish to sell.
Half of this fee is ‘burned,’ while the other half is redistributed to surviving token holders, therefore raising the value of their holdings over time.
SafeMoon has received widespread criticism for the present supply of the token’s ownership structure since members of the founding team possess a disproportionate share of SafeMoon’s overall liquidity.
Even though these assets are under a so-called lock-up, such concentration of ownership is sometimes a source of considerable worry in the crypto world.
This is due, in part, to the power that significant holdings, known as whales, have over price movements when they sell.
Despite this, SafeMoon has a tiny but devoted following of supporters who intend to keep the token for the long haul. Despite a decline from all-time highs in April and May of 2021, this popularity has kept the price of SafeMoon above zero.
Best Platforms to Mine SafeMoon
Unfortunately, SafeMoon cannot be mined since the maximum number of these currencies already exists. They will only deflate from here on out through transactions.
How Many SafeMoons are There?
SafeMoon is presently ranked #202 on Coinmarketcap, with a $2.9 billion market value and a circulating supply of 572 trillion tokens as of the time of writing. SafeMoon has a total quantity of one quadrillion tokens.
Will SafeMoon Get to One Dollar?
SafeMoon will likely attain a dollar value in the future. However, even the most bullish long-term SafeMoon cryptocurrency price estimate has it valued at less than a penny over seven years of existence.
Frequently Asked Questions (FAQs)
1. Is SafeMoon a meme coin?
SafeMoon is a growingly popular and contentious cryptocurrency. SafeMoon, like Shiba Inu, is a meme-coin that primarily trades on social media sentiment.
SafeMoon, like most meme currencies, trades for fractions of a cent and is highly volatile.
2. Why is SafeMoon not on Coinbase?
Coinbase is the largest cryptocurrency exchange in the United States, and it would make sense for the company to include SafeMoon among its many assets.
SafeMoon cannot be purchased on Coinbase since the exchange does not normally list many of the smaller coins.
Final Thoughts
SafeMoon is a cryptocurrency that is backed by popularity and, as such, may be deemed a very high-risk investment.
Nevertheless, it has seen an impressive gain in recent weeks, putting a smile on the faces of investors who invested in the token.
Take note, however, to do proper research before you invest in it, as you can easily lose your funds if the right actions are not taken.
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