New digital currencies have entered the market one after another, with a growing trend in recent years. This trend continued in 2021, and many digital currencies have been introduced to the market.
Many start-ups in the world have focused their projects in this direction, seeing the unique potential of this market. The safeMoon digital currency is one of the cryptocurrencies launched in March 2021 and has attracted much attention quickly.
With the success and growth of digital currency projects and the growing tendency of people to buy and invest in this field, cryptocurrency is no longer a strange concept. Digital currency investors are taking many risks today because the digital currency market is very volatile, as evidenced by the recent sharp rise and fall in prices.
There are several different cryptocurrencies on the market, the most prosperous of which are Bitcoin, Ethereum, and Dogecoin. Now in cryptography, another digital currency called SafeMoon digital currency is being considered. SafeMoon is the new cryptocurrency, and it has been rising in recent months. Join us in this article to learn more about this new digital currency.
What is SafeMoon?
SafeMoon is a digital currency token launched under BEP-20 tokens in the Smart Binance Blockchain (BSC). In the blockchain ecosystem, there are decentralized financial platforms (DeFi) and centralized financial platforms (CeFi).
A central bank does not regulate the DeFi ecosystem. However, assets are publicly displayed on the blockchain network. In contrast, in the CeFi ecosystem, assets are managed through an intermediate exchange. Blockchain BSC uses SafeMoon to run in the CeFi ecosystem.
SafeMoon is similar to Bitcoin and Ethereum that has several fundamental differences. Its makers say they want to fix some of the problems – such as price fluctuations – that are common to other digital coins. To do this, SafeMoon intends to prevent its daily coin trading and reward long-term holders by receiving a 10% commission on each sale.
Half of the collected expenses are considered for the holders of existing coins who receive some dividend in the form of additional coins.
“The goal here is to prevent bigger drops when the whales decide to sell their tokens later in the game. It makes the price fluctuate just as much,” SafeMoon said, explaining its currency to investors with large amounts of digital coins.
SafeMoon also says it chooses manual burns over continuous burning when digital coins are deliberately taken out of circulation. According to the makers, manual burning gives SafeMoon more control over coin supply. Less supply increases the price of coins as demand increases.
Who are the founders of SafeMoon?
SafeMoon lists a team of six leaders. According to his LinkedIn profile, the company is led by CEO John Caroney. He previously served as a US Department of Defense analyst. He and Thomas Smith, chief technology officer at SafeMoon and director of the Trevor Church community, are also working on an independent video game studio. its name is TANO, which stands for “New Technical Operation.”
Smith has worked with various organizations on the blockchain and decentralized financial products for the past two years. UK-based SafeMoon CEO Jack Heinz Davis lists LikeandShare and Ben Phillips Global on LinkedIn as his former employers.
How does it work?
SafeMoon is a digital currency that is digital currencies that only exist online, and we hope they can be used as a medium of exchange. Like popular digital currencies such as Bitcoin and Ethereum, Safemoon supports distributed general office technology such as blockchain. SafeMoon was created on the smart blockchain of Bainance and alone has a market value of about $ 1.3 billion (as of September 2, 2021), compared to about $ 930 billion for Bitcoin.
Encouraging long-term investment and reducing sales are the goal of SafeMoon. It does this by receiving a 10% fee from sellers, half of which is better for current Safemoon holders and the other half for use in a liquidity pool (trying to keep prices stable).
During the Safemoon audit, blockchain security firm CertiK found that its owners obtained tokens created from the liquidity pool. It gave them control over the tokens created as part of the fee. CertiK noted this in its report as a significant issue and advised Safemoon to improve its security features.
SafeMoon developers also manually reduce the amount of Safemoon in circulation regularly to reduce supply and increase prices. According to CoinMarketCap, the price rose shortly after its introduction in March, reaching a high of $ 0.000014 on April 20.
Feature of SafeMoon
SafeMoon is designed to withstand fluctuations by rewarding investors for holding their coins. It works with three simple functions: Reflection, LP Acquisition, and Burn.
Reflection: Static rewards, known as reflections, try to correct problems with extraction rewards. It does this in two ways:
The amount of the reward is conditional on the transaction volume, which reduces the selling pressure caused by the initial sellers of their coins.
Encourages these people with tokens to receive higher payments based on the total number of properties.
This static approach is different from traditional extraction rewards. For example, early recipients were rewarded more for their mining efforts with Bitcoin- and other tokens- than those who arrived later because the reward value diminished over time.
This means that early users usually have more passwords than new buyers. The SafeMoon Fixed Rewards approach seeks to reduce the problem of early coin dealers en masse.
Manual burn: Most digital currencies go through token burning, which permanently takes tokens out of circulation. This process is an attempt to create shortages and thus increase value. Some crypto projects are constantly burning coins from the beginning.
However, SafeMoon uses manual burns instead of continuous burns. The argument is that this process can implement a profitable burning strategy for long-term investors.
Acquisition of LP: According to the official white paper, the automatic liquidity pool is the “secret sauce” SafeMoon. This function creates a fixed price floor for both buyers and sellers.
It is for long-term sustainability. An unusual feature of SafeMoon is the fine for selling coins. For each transaction, the smart contract receives a 10% fee. Five percent of the commission is shared among existing holders and encourages investors not to sell their tokens.