SafeMoon is an alternative cryptocurrency that was released by a decentralized platform with the same name. The cryptocurrency was released in March 2021 and has quickly gained over a million holders. According to the protocol of the platform, the token performs three main functions during the trade, which are Reflection, LP Acquisition, and Burn. This is entirely a community-driven project.
The project is often compared with Dogecoin as its slogan “Safely to the moon” reminds DOGE’s motto “To the moon”. However, here a more serious approach is observed as the goal is not to reach the height but to do it safely. Anyway, the slogan was well accepted by the cryptocurrency community.
The goal of the SafeMoon project
The token was designed to solve the problem of a valuation bubble that often occurs after the burst and the collapse of the price. The platform offers its own solution to avoid a high APY LP-farming trap that became an issue in the conditions of the DeFi explosion. Numerous cryptocurrency facilities were ruined after getting into this trap. SafeMoon offers static rewards to resolve this problem.
SafeMoon protocol is a combination of RFI tokenomics with the additional functionality of autoliquidity generating protocol. To launch the token, a SafeMoon developer had to participate in the presale. After minting the tokens, a dev sent the balance to the DxSale network and initiated the burning mechanism for the remainder of the tokens.
The DxSale protocol was employed to launch the token fairly. The team of SafeMoon has selected such an approach to foster trust in the community. The platform initiated the process of auto-locking liquidity for 4 years to achieve the goal.
This mechanism was developed to diminish selling pressures initiated by early holders selling their assets after they discover insanely high percentage pharming yields. The reflection mechanism urges holders to hold on to their tokens so that they could obtain higher returns determined on the basis of percentage.
As the volume of tokens determined the value, the burning mechanism was introduced being strictly monitored by the team. The platform announces the conditions of burning and the number of tokens, which are going to be destroyed. The burning is necessary for the long-term development of the project
Automatic Liquidity Pool (LP) created by the team of the project protects users from a price collapse that can occur during the massive sale of tokens. The developers designed a smart contract collecting tokens from both parties, sellers, and buyers adding them to the general pool and creating a price threshold in this way. It helps to maintain the balance and stability that can be ruined by the supplied LP.
The team of the project works over its own dedicated wallet, which is going to be a component of Canada-based Operation Phoenix, a cloud mining service provider. Since the wallet is not ready yet, the acquisition of tokens is possible via the Trust Wallet app and its use for the purchase of BNB or BSC (Binance tokens), which are then swapped to SafeMoon. According to the roadmap, the team plans to launch an NFT exchange also.
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The cryptocurrency is unique as it charges a rather sizable fee (10%) for the sale of its tokens. Half of this amount is distributed among the members of the community rewarding the holders of this token. The mechanism was developed to remove the incentive of selling the asset and the strategy seems to work as the value of the token has rapidly increased after the launch.
The model chosen by the project attracts early adopters who are going to profit more from subsequent sales. SafeMoon’s owners were criticized by WaronRugs, which is a kind of antiscamming organization for locking away over 50% of its own liquidity pool. It means that the possibility of the exit scam considerably increases. However, the CEO of the project assures that liquidity is held for better security of the cryptocurrency.
The official website of the platform says that the SafeMoon token is traded against DogeCoin on the Bibipom cryptocurrency exchange. The token is also sold on such platforms as PancakeSwap, BitMart, WhiteBit, and Bakery Swap. Though the project is rather young, it features a very good community.
John Karony with the nickname Capt Hold is the CEO of the project. He also calls himself an indie dev and video game enthusiast. John Karony is also the founder and CEO at TANO, an indie game studio. Previously, he took the position of an all-source analyst at the United States Department of Defense. The core team also includes Thomas (Papa) Smith, Henry (Hank) Wyatt, Trevor (Ragnar) Church, and a website dev Jacob (King Fox). All members of the team are US citizens.