What is Safemoon?
SafeMoon is a cryptocurrency that was introduced in the crypto market in March 2021. SafeMoon cryptocurrency has adopted a community-driven approach and the mission of the currency is to decentralise the financial system, that is, to establish a financial system where there is zero interference of the regulatory authorities.
After its launch in 2021, in less than 6 months, there were more than 2.3 million holders of Safemoon in the cryptocurrency market.
SafeMoon developer had the mission to create a cryptocurrency that ensures safety and does not allow the creation of bubbles. The selling of SafeMoon is discouraged through the imposed penalties on the selling and buying the cryptocurrency is encourage through rewards.
- SafeMoon is a cryptocurrency that was introduced in the crypto market in March 2021.
- SafeMoon cryptocurrency has adopted a community-driven approach and the mission of the currency is to decentralise the financial system.
- SafeMoon developer had the mission to create a cryptocurrency that ensures safety for the cryptocurrency users and does not allow the creation of bubbles.
Frequently asked questions (FAQs)
Who are the creators of Safemoon?
Four leaders are part of the SafeMoon cryptocurrency. Beginning with the CEO of SafeMoon, John Karoly. Earlier, he served in the US Department of Defense as an analyst. Thomas Smith is the Chief Technology Officer of SafeMoon and Trevor Church is the community member. All of them are working on a video game studio, named TANO. TANO stands for technically a new operation. Smith (CTO) has experience in the field of decentralised financial products and blockchain as he worked with organisations dealing in the same for few years.
Jack Haines–Davies is the chief operating officer of SafeMoon and he is based in the UK.
What are the features that differentiate Safemoon from other cryptocurrencies?
There are three main functions of SafeMoon that ascertains its working also.
Reflection – Reflection stands for static rewards and Safemoon is a reflection cryptocurrency. In reflection, the transaction fee which is charged for entering into the transaction is distributed amongst the cryptocurrency holders. This mechanism rewards the long-term holder of the currency on the basis of the tokens held by them.
The reward mechanism of SafeMoon is completely different from other cryptocurrencies like Bitcoins. In Bitcoins, the early adopters enjoy higher returns in exchange for their efforts in mining and the rewards provided to the latecomers is generally low. However, in effect, the early adopters dispose of their holdings and create selling pressure. SafeMoon aims at solving the issue of selling pressure which is created by the early adopters.
LP Acquisition – Liquidity pool is considered the secret weapon of SafeMoon cryptocurrency. This function helps in the creation of a price floor for birth sellers and buyers. LP acquisition ensures long-term stability on the platform.
The most fascinating feature of SafeMoon is the penalty that is charged on the sellers for disposing of their holdings in the market. 10% fee is charged and 55 of the total transaction fees is distributed amongst the token holders. Thus, discouraging the selling of the currency.
The main goal of introducing higher transaction fees is to prevent significant falls in the prices and keeping the price fluctuation in control.
Manual burning – Cryptocurrency burning is a process in which the currencies in the circulation are burned and the quantity of tokens in the circulation is decreased. The main purpose of crypto burning is to create a situation of scarcity and in effect increase the value of the currency. There are many currencies that use crypto burning.
SafeMoon involves manual burning of the currencies rather than continuous burning. With manual burning, the management has the power to change the strategy as per the benefits of the large investors and the long-term stability of the currency. In addition to this, manual burning is announced publicly and thus marinating transparency in the whole process.
Is it safe to invest or trade in Safemoon?
The majority of the cryptocurrencies have some purpose nod do something such as providing a platform where developers can develop applications or solve an existing problem or establish linkage between a range of blockchains and so on. However, it is not the case with SafeMoon. The only purpose of SafeMoon is to make people hold the currency for a longer duration and manage the prices as per the interest of the investors.
Image source: © Arif77shine | Megapixl.com
From where to buy Safemoon tokens?
BitMart and PancakeSwap are the two main exchanges from where Safemoon tokens can be purchased. SafeMoon aims at getting trading permission on major exchanges like Binance or creates its own exchange.
In the Pancake Swap, the traders can execute a trade from their digital wallets directly. It is a decentralised exchange that extends the complete control of the currency to the users rather than the exchange or any other authority. Unlike many exchanges, this exchange does not extend any additional benefit to its users. Moreover, the currency holder is solely responsible for the security of their e-wallets. The process of buying SafeMoon is a little complicated on the Pancake platform, as first the investor is required to purchase Binance coins. Then the holdings are converted into Smart Chain which can be swapped for SafeMoon.
Bitmart exchange is known globally for its professionality, accessibility and trustworthiness. The offices of BitMart are located in Hong Kong, Seoul, Singapore and New York. Spot trading is the core component of BitMart followed by futures contacts and other trading options.
Interest facts about SafeMoon
- SafeMoon was launched on BSC (Binance Smart Chian) in 2021.
- Three main components of SafeMoon are reflection, FP Acquisition and manual burning.
- Proof-of-stake is the consensus mechanism of SafeMoon.
- The SafeMoon is highly speculative as the creators of the cryptocurrency do not have any significant experience in the field.