Those curious about Safemoon can gather enough insights from this article. The safe moon crypto is the new kid on block. It was launched in March 2021. The token, accompanied by high transaction fees of 10% and equally high volatility, has generated a lot of social hype. Like other renowned cryptocurrencies like Ethereum and Bitcoin, Safemoon uses the distributed ledger technology created on the Binance Smart Chain blockchain. The creators claim that the purpose of making the new token was to encourage long-term investment. 50% of the transaction fees go to the long-term holders and the remaining to a liquidity pool that aids the price stabilization of Safemoon.
What is Safemoon?
Launched under the BEP-20 tokens on Binance Smart Chain, blockchain Safemoon is a cryptocurrency token, not a coin. The blockchain ecosystem consists of decentralized finance (Defi) and centralized finance (Ceci) platforms. Defi is out of the ambit of the central bank’s control and is an independent platform, but the assets are visible publicly on the blockchain. The Ceci ecosystem uses an intermediate exchange for handing assets. The BSC blockchain utilizes a CeFi ecosystem.
The manner of distribution of the transaction fees makes it clear that the new cryptocurrency is not a flash in the pan and isn’t bogus or a joke like other cryptocurrencies like the Dogecoin, Inu Coin, and Shiba. But like Dogelon Mars, Akita Inu, and some other smaller crypto breeds, Safemoon seems to draw a leaf from Dogecoin’s book by investing in meme culture while riding on the plank of the former’s popularity.
The Financial Aspects of Safemoon
Celebrity endorsements by names like YouTuber Jake Paul, rapper Lil Yatchy and Dave Portnoy, the famous sports blogger, pushed up the price of Safemoon during the second quarter of 2021 and created lots of buzz on social media.
Currently ranked 117th among cryptocurrencies based on market capitalization by CoinGecko, Safemoon occupies the 218th spot among all cryptocurrencies in popularity as ranked by CoinMarketCap. However, both the rating agencies agree that the current price of Safemoon is much lower than the peak it had reached on May 11, 2021, which is within two months after its launch.
Is Safemoon a Scam?
You might raise the question – is Safemoon legit as there are strong views expressed in some quarters that Safemoon is a scam. The sudden spike in Safemoon prices in April 2021, when it touched an all-time high as its value increased 12 times, raised eyebrows. The phenomenon appeared to be too good to be true. As a result, many observers labeled it as a Ponzi scheme where the money invested by people at a later stage went back to the early investors.
The concerns about the legitimacy of Safemoon also stem from the fact that cryptocurrency is not to have any real-world use.
Having got the answer to your question – what is Safemoon you can now decide whether it would be meaningful to go after the crypto that hints at helping you reach the moon.
