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The latest cryptocurrency SafeMoon is a decentralized finance (DeFi) sign that has quickly earned a reputation on common media amongst investors watching for the following digital asset to increase in price.
What is this coin, and how does it work? Can SafeMoon compete with Dogecoin? This article gives you detailed information about cryptocurrency that you need to know before deciding whether to invest.
SafeMoon aims to reward Hodlers
What is SafeMoon? Launched in March 2021, it is a DeFi token powered by the SafeMoon protocol. DeFi tokens use smart contracts that run on blockchains like Ethereum to provide decentralized services. As of July 2, the number of SafeMoon owners exceeded 2.42 million.
The name SafeMoon is a reference to the phrase “to the moon” used on social media by cryptocurrency traders who are optimistic about the price of dogecoin.
How does SafeMoon work? According to the official website, the protocol is based on three functions, which it calls reflection, liquidity pool (LP) acquisition, and burning. The compensation device for operating tokens shows the selling amount to encourage owners to hold their tokens, which is called “hodling” in the cryptocurrency business.
What’s next for SafeMoon?
SafeMoon is available for trading on BitMart trading platform, Pancake Swap and Bakery Swap decentralized exchanges, and WhiteBIT centralized exchange and crypto exchange ranks.
SafeMoon launched in May on:
- LBank;
- Bitrue;
- BiKi.
He plans to launch it on other exchanges including Binance, Coinbase and Kraken later this year. According to the 2021 roadmap posted on its website, SafeMoon intends to produce a non-fungible token change (NFT), publish a video play with a game-integrated sign, and generate kind designs. A popular example of an NFT game is Pixel Invaderz.
Criticism of the SafeMoon project
Critics point to the uselessness of the token. Presumably, the bridge will help expand the use cases of the project, turning it into just a token for growing crops. For example, it can not only increase trading volume by allowing ETH holders to buy SafeMoon but also allow SafeMoon holders to use their tokens in various Ethereum decentralized applications such as MakerDAO and Uniswap.
Another controversial point is the centralized risk of the project. According to a plan audit accompanied by CertiK, a blockchain firm that audits the safety of other blockchain designs, SafeMoon buyers save a meaningful part of the liquidity pool tokens, which could eventually pretend a concentration threat.
SafeMoon Price Analysis
SafeMoon’s price rose sharply from April 17 to April 20 from $ 0.00000159 to a peak of $ 0.00001399 – a 780% increase and a staggering 69.850% rise since March 12. The price then fell 70% to $ 0.00000421 on April 22, with a trading volume of $ 191.6 million.
While the price climbed to $ 0.00000699 on April 24, following the rest of the cryptocurrency markets, the price fell to $ 0.00000381 on May 1. It traded at $ 0.00000982 on May 15, up 157.7% over two weeks, but fell to $ 0.00000385 by May 24. At the time of writing, the coin is trading at $ 0.0000034.
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