SafeMoon is a decentralised finance (DeFi) token that launched in March 2021 with the aim of protecting their investors against whales that create bubbles and speculation sell-off that can damage a brand’s future prospects. Basically the token rewards you for having diamond hands in a new token class they call “reflection tokens”.
We’ve all been there, seeing those shiny 6 digit figures can be pretty damn tempting to jump in. However, almost always the token suffers from the inevitable valuation bubble, which is then followed by the burst and the impending collapse of the price.
SafeMoon White Paper
SafeMoon is Expensive to Trade
If you’re thinking of trading the SafeMoon coin then think again because you will be hit with a massive 10%-12% trading fee. With 5% of every purchase or sale is redistributed amongst all wallet holders, and the other 5% is split half burned half sold into BNB because of a contract.
According to the SafeMoon white paper there is a total token supply of 1 quadrillion, with a launch supply of 777 trillion. If you sell it, you will be hit with a 10 to 12 per cent transaction fee, half of which is redistributed to existing holders, helping to create what they hope will be a ‘price floor’. This mechanism was added to reduce the likelihood of pump and dump schemes.
1,620 Cryptocurrency Dead Coins
Cryptocurrencies are gaining popularity, with some 106 million users globally trading in more than 2,300 cryptocurrencies. However, 1,620 have crashed (“dead coins”) some of which were caused by pump and dump schemes or massive speculative sell-off. This is important to note, as these new coins promise prices to the moon, and a lot of them end up as dead coins.
How Is SafeMoon Different From Other Liquidity Providers?
SafeMoon has three functions that take place during each trade: Reflection, Manual Burn, and LP Acquisition.
The rewards from providing liquidity are static, compared to others that fluctuate based on the amount of coins that help provide liquidity. This is called reflection, and aims to eliminate problems caused by these farming rewards.
Sometimes burns matter; sometimes they don’t. Manual Burns are a strategy that aim to implement a burn strategy that is beneficial and rewarding for those engaged for the long term.
The white paper states that “Automatic Liquidity pool (LP) is the secret sauce of SafeMoon”. Essentially this process is there to help keep the value of the coin more stable when people start selling, through the various methods of capturing LP and reinvesting it into the pool.
How They Plan to Ensure Safety
- Developers burned all tokens in the Dev Wallet prior to the launch
- Held a fair launch on DxSale
- LP locked on DxLocker for 4 years
- LP generated with every trade and locked on Pancake
Toward the future they plan an integration process with WhiteBIT, a crypto-to-fiat currency exchange offering more than 150 trading pairs, and BitMart, the cryptocurrency trading platform. SafeMoon also plans to develop a non-fungible token (NFT) exchange, as well as charity projects and crypto educational apps.
Join in the conversation on this article’s Twitter thread.
Disclaimer:
The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.
Credit: Source link
