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Everything You Should Learn About SafeMoon
The Crypto market has more than 9,000 currencies currently, and the numbers are constantly growing. Such a huge number of cryptocurrencies make it difficult for a user to understand which cryptocurrency he should choose for investment.
The pioneering coins Bitcoin trading through Bitcoin Trading Software and Ethereum are leading the crypto world. It is essential to consider that not all cryptocurrencies succeed, many of them get a failure, and some are fraudulent. Visit Crypto Crash.
In the crypto world, every investor dreams about two things, going to the moon and experiencing the maximum value of their holdings. However, many Altcoins face severe price fluctuations. And when you indulge in multiple crypto frauds and rug pulls, investing in different Decentralized Finance projects is dangerous.
That is why a cryptocurrency is required to ensure the safety of your investments. To cope with these problems, SafeMoon crypto came into being.
What Is SafeMoon?
SafeMoon is one of the newest community-driven DeFi projects; that launched in March 2021. It was developed to benefit the long-term investors by charging a 10% fee from sellers, part of which is refunded to existing crypto-holders.
SafeMoon contains its crypto wallet that is supported for android and iOS. As per the Whitepaper of SafeMoon, its main objective is to provide a solution to liquidity and mining rewards problems that are associated with other cryptocurrencies.
SafeMoon utilizes Smart Contracts for its operations and tries to minimize the fluctuations and maximize liquidity. To achieve this, it charges a 10% transaction fee for each trade made through the SafeMoon network. Giving 10% as transaction fees is precipitous, and in this way, SafeMoon prevents users from swing trading or pumping & dumping the coin.
In addition, through its immobile reward structure, SafeMoon provides digital tokens to its holders via Reflections. And again, it degrades selling because the currency holders receive rewards just by holding the currencies.
Features Of SafeMoon
SafeMoon came into existence to reduce volatility by benefitting holders for holding their digital assets. It operates with the following features;
Reflections are Static Rewards, a replacement or an alternative to Mining Rewards to resolve the associated problems. The amount of reward is based on trade volume, which relieves the selling stress produced due to the selling of coins by early adopters.
This encourages token holders to receive higher rewards based on the total amount of cryptocurrencies they are holding. This approach of Static Rewards is unique. For example, with Bitcoin and other cryptocurrencies, the early adopters received higher profits for their mining work than the latecomers because the value of gains diminishes gradually.
An automated liquidity pool is a code for the success of SafeMoon. This feature establishes a solid value destination for both buyers & sellers. This design ensures persistent durability. Smart Contract deducts 10% as a transaction fee for each transaction, 5% of which is disbursed among existing investors to prevent them from selling their digital tokens.
SafeMoon aims to stop the big dips when the market sharks decide to sell their holdings later, which prevents the price volatility as much as possible.
The majority of cryptocurrencies go through a process known as token burning, which eternally eliminates token circulation. This process takes place to build a scarcity of tokens which will result in higher demand and higher prices. Some crypto projects are constantly burning coins from the beginning.
However, the case of SafeMoon is different because it uses Manual Burning rather than continuous burning. This process leads to a rewarding strategy for long-haul investors. It also permits burns announcements and public tracking, which results in the enhancement of transparency.
Risks Attached With SafeMoon
- Since its inception, SafeMoon’s prices have fluctuated sharply, rising more than 20,000% before falling to more than 80% currently.
- Cryptocurrencies are something new for governments, and it will take time to completely comprehend them. So, SafeMoon can face regulation issues if the government bans digital currencies.
- The name SafeMoon seems to have been selected to take advantage of the currency frenzy to deliver an asset that is “safe” and “going to the moon” instead of having a real primary objective. Mature investors must take it as a red flag or alarming bell.
- The trading of SafeMoon does not involve popular exchanges, and it uses exchanges on which a few cryptocurrencies are tradable.