After the initial boom of cryptocurrency way back in 2017, many people thought that this would become the new normal. However, that sharp increase was followed by years of volatility that manifested uncertainty among the masses. It was only when Bitcoin really took off last year that cryptocurrencies stepped into the limelight again. What later followed was the incredible story of Gamestop, and the astonishing rise of a meme cryptocurrency, Dogecoin.
Having said that, these can be classified as one-off events and don’t have any consistent and robust backbone. And, with older cryptocurrencies like Bitcoin getting increasingly harder to obtain and mine, people’s focus has shifted to new entrants into the market. One of those is SafeMoon, which has become the most searched cryptocurrency in the world overnight. So, what is SafeMoon all about and why is it garnering so much interest?
What is SafeMoon all about?
SafeMoon, according to its website is inherently not even a cryptocurrency. Instead, it is something called a DeFi token, which is a Decentralized Finance Token. Its aim is to disrupt the current financial system being controlled by banks and instead give power to the people for peer-to-peer transactions. This is not the only SafeMoon characteristic that’s similar to Bitcoin as it also uses complex blockchain technology as its backbone.
How is it different from a cryptocurrency?
So, what makes it different from other cryptocurrencies then? Well, for starters, the entire philosophy behind SafeMoon is that its creators do not encourage disposal or trading of the token. Instead, keeping hold of SafeMoon is beneficial to its owners. “Remember, getting to the moon takes time and the longer you hold the more tokens you pick up.”, says the official SafeMoon page.
In reality, this philosophy is backed by a 10% sellers’ fee every time SafeMoon is disposed of by someone. However, the interesting part is that 5% of this fee is then redistributed into the value of tokens that are being held by existing owners. So, this results in a multi-level marketing loop where more buyers equal greater value.
SafeMoon has come bursting through the door into the Crypto world
As a result, SafeMoon’s value has skyrocketed over the past couple of days by over 100%. And, as more people try to get in on the hype, it’s only going to go up. This method of adding value after every transaction means that the token won’t be as volatile as other speculative cryptocurrencies. Having said that, the legitimacy of SafeMoon is still up in the air as it is, still, an undiscovered new road.
— BitMart.Exchange (@BitMartExchange) April 20, 2021
The fact that it has begun to send new waves into the world of cryptocurrency and could disrupt the system cannot be undermined though. Thanks to some excellent marketing and promotion on Twitter and other social media websites, SafeMoon has managed to get some eyes on it and has kickstarted its ascension to the skies.
The token is going to be available on many widely used cryptocurrency exchanges. For now, though, it remains limited to WhiteBit, Bitmart, and PancakeSwap. In addition to that, SafeMoon also plans to launch its very own exchange and has already raised over $700K out of the $1 million required. If it manages to reach that point, it’ll surely gain even more momentum and increase its current $3 Billion market cap.
Is it safe to invest?
It is easy to say that SafeMoon is completely impervious to any volatility and risks that other cryptocurrencies carry but can you trust those claims? Well, for now, most analysts and investors have suggested a wait-and-see approach for the token. It has not been out for a long time so it can be tricky to ascertain exactly what direction it is heading in.
However, as far as the legitimacy fears are concerned, those can be put to bed. As SafeCoin is based in the US, it has passed the necessary regulations and tests to become tradable on different exchanges. Having said that, the story is quite different for those in the UK as cryptocurrencies aren’t properly regulated yet. So, despite it being fairly safe, you should still proceed with caution and do your research before investing.
SafeMoon could be the new future of cryptocurrency
SafeMoon is still a relatively new concept. The fact that it protects its investors against sharp declines and a volatile market value though, makes it a viable replacement for normal currency. This is not something that the current set of cryptocurrencies can claim to do right now. The SafeMoon model also opens up a door to many new investment opportunities and avenues.
In addition to that, it also poses some interesting questions against the current state of the cryptocurrency market. Having said that, with its current value being only a fraction of the runaway DogeCoin, there is still a long way to go for SafeMoon. So, DeFi tokens are nowhere near toppling the meme cryptocurrency, let alone giants like Bitcoin.
Do you think that the SafeMoon model makes sense? If yes, are you interested in investing in it? Let us know down in the comments below!