SafeMoon, the new hype since March 2021 or the future of decentralized finance? The year 2021 saw an explosive growth in the number of projects and especially in the ecosystem of decentralized finance. With SafeMoon doubling in value one after the other, the news quickly spread on social media that this was the way to become a millionaire in record time. But what exactly is SafeMoon and how does it work?
- 1 What is SafeMoon?
- 2 Foundations of the protocol
- 3 Roadmap
- 4 Socials
- 5 Where do you buy SafeMoon?
- 6 Is SafeMoon a scam?
- 7 Related projects
- 8 Safemoon Chart
- 9 Conclusion
What is SafeMoon?
The name of the protocol is immediately promising. They want to go to the moon in a safe way. “To the moon” is a common expression when investors are extremely hopeful about a protocol and strongly believe it is the future. There’s no getting around it: if you’d actually invested a few hundred dollars at the start of the project, you could easily have become a millionaire. This ideology is interesting enough for many young investors to invest blindly, which is never a good idea. But what is SafeMoon?
SafeMoon is a project in the world of De-Fi that puts the community at the center. Increasingly, the projects that want to maximize decentralization by placing the community at the center as much as possible. In this way, such projects gain a lot of prestige due to the high degree of influence that an investor has.
Bubble or foundation?
The world of DeFi in particular is also known for its attractive interest rates, but also for the constant danger of impermanent loss. This is the loss that can occur when the available liquidity changes in a very short time, causing the price of your investment to plummet. When a project enters a bubble, and large investors decide to sell their digital assets, the bubble bursts and many small tokenholders are left with significant losses. SafeMoon therefore wants to remove this fear and has 3 foundations that make the protocol worth investing in, according to the team.
Foundations of the protocol
The staking process allows you to generate passive income from your current digital assets. That is why it is also a popular thing to do, especially when these interest rates are attractive. Nevertheless, SafeMoon has decided to work with static rewards. In this way they want to create steadfastness and provide transparency to the community.
Despite the fact that the world of crypto was originally developed from a decentralized ideology, in practice we see that this decentralization is not optimal due to the use of exchanges. It is therefore this paradigm that is often the driving force for the further developments of DeFi. Characteristic of De-Fi protocols are the high degree of decentralization and the control of and by the community.
Holders of SafeMoon tokens are thus rewarded with extra tokens with every transaction that takes place in the network. In this way, the protocol aims to reward token holders, but also hopes that investors will commit to the project in the long term. This has many advantages. By holding the tokens in the long term, there is always sufficient liquidity so that problems such as impermanence and market fluctuations by whales can be minimized. The extra rewards they get will only benefit investors who believe in the protocol.
Automatic liquidity providers
The latter ensures an automatic liquidity stock. Where with other DeFi projects you have to manually make your tokens available in a certain pool, in exchange for attractive interest rates, this is done automatically with SafeMoon. Adding liquidity manually is becoming more common, but it is still subject to potential market manipulations. When a large investor decides to provide liquidity, a lot of liquidity is added to the protocol in a short period of time, which is beneficial. But when it decides to no longer make its digital currency available, this liquidity decreases significantly, which still has a negative impact on the price.
SafeMoon wants to prevent this problem. Each transaction on the network is associated with a fee of 10% of the total transaction amount. As a result, they want the protocol to be regulated by the community itself. They determine how much liquidity is added and how many extra tokens are distributed. Of this 10%, 5% will be redistributed among the holder of the Safemoon token. The remaining 5% is split and half is incinerated. The remaining 5% is added to a liquidity pool, with the Binance Coin ( BNB ) trading pair.
At the time of writing, at the end of May 2021, SafeMoon has a market cap of no less than $2.7 billion and may have been one of the fastest growing crypto projects in recent months or possibly years. Based on CoinMarketCap, SafeMoon is in the top 50 protocols, surpassing protocols such as Sushi and Ziliqa.
Total Stock: 1,000,000,000,000,000
Stock in circulation: 583,695,206,887,710
Burned Tokens: 223,000,000,000,000
Burning tokens may seem like a pretty drastic decision or affair, but it happens more often than we think. It is a strategy to regulate the price of a token or coin. Through the combustion process, they are removed from circulation to make the total stock more scarce. This increases the value of a coin and makes it more interesting for investors to be involved in a project that uses this strategy.
The project has been in the spotlight since its launch in March 2021 due to the unprecedented successes and success stories that young investors have experienced in a very short time. You may also have heard of SafeMoon for the first time because someone made the biggest profits with a bizarrely small deposit. But what is the future of SafeMoon?
SafeMoon wants to become available on as many decentralized exchanges as possible so that everyone worldwide can invest in the token that they believe will go ‘to the moon’. For example, during quarter 2, the team is working on an integration with Whitebit, a decentralized exchange that also offers a DEX as well as an integration with BitMart.
The world of NFTs took off in late 2020 and early 2021 with the arrival of more and more exposure and opportunities around these non-fungible tokens. It is therefore not unwise to make use of this hype. We see more and more protocols creating their own platform to sell NFTs, all of which contribute to additional trades for their own network. In addition, they also want to make video integration possible in the future.
Another recurring development in new projects is the integration and/or collaboration with charitable projects. In this way they want to build credibility and appeal to more investors. Which projects these will be will be determined by the community itself. All token holders will be given a governance function here where they will be given voting rights. The future will show how this new development takes shape. These are certainly on the agenda for the second and third quarters of 2021.
To the moon
In addition to the fact that Safemoon tokens can be traded on various decentralized exchanges, the team is working on the realization of its own native decentralized exchange. In addition, they want to focus on the African market by the end of the year, where they want to have a physical presence in Africa and also create jobs to offer the local population opportunities in the world of crypto. They are also hopeful of listening to major exchanges such as Coinbase and Binance in the near future .
Facebook : 130,000 followers
Twitter : 801,000 followers
Instagram : 109,000 followers
Discord : +100,000 members
For a protocol that was only launched at the end of March 2021, this community has a record number of members and followers in no time. When we look at these, we also see how involved and engaged SafeMoon holders are with the protocol.
Where do you buy SafeMoon?
SafeMoon is built on the mainnet of Binance and thus tradable via Binance’s decentralized exchange, namely PancakeSwap .
PancakeSwap is a decentralized SMP. This is an automated market maker based on the Binance Smart Chain. Since SafeMoon is built on the mainnet of Binance, this is the place to be to buy your SafeMoon token.
Trading on a decentralized exchange is done on the basis of a software wallet, such as TrustWallet or MetaMask. When entering the decentralized network, you need to connect your wallet to the DEX. Then add the unique address so you can purchase SafeMoon against other available trading pairs. Pay attention to the slippage. This is the price difference that can occur due to, among other things, lack of liquidity. What is characteristic of decentralized exchanges is that you trade at a market price. Someone is willing to buy tokens for price X, with a new buyer purchasing this amount at the exact same price. Trading in a decentralized environment is completely different from trading on an exchange. Always make sure that you are alert and that you enter the correct address and in the right place. If not, it may just happen that you make a trade to an incorrect address and you lose your capital.
Recently Dex Guru makes his appearance. This is a trading platform based in the DeFi ecosystem that gives you access to decentralized protocols on both the Ethereum blockchain and the Binance Smart Chain. The exchange does not charge any additional costs, in addition to the gas fee that you have to pay. On the SafeMoon website you will receive a manual and step-by-step plan on how to buy SafeMoon on Dex Guru.
Is SafeMoon a scam?
Despite the successful stories, SafeMoon is also often scrutinized and labeled as a scam. Why? This statement often comes from die-hard crypto enthusiasts looking for the fundamental value of a project. Many projects such as Bitcoin and Ethereum have solid foundations, which is missing from SafeMoon. This use case of SafeMoon is often questioned.
In recent weeks they have added more relevant projects to a roadmap, but it is clear that this project is a community project that does not have too many additional foundations. Skeptics therefore question the legitimacy due to, among other things, the pyramid structure and 10% costs when selling your tokens. Despite this, opinions are divided and SafeMoon remains a popular protocol that many people still invest in. According to their official website, there are currently more than 2.2 million holders, and the number is increasing every day.
As an investor, you naturally want nothing more than to be at the start of a successful protocol in order to maximize your profits. In reality, we see that many people start to follow the successes and thus perhaps invest in a project too late and thus suffer a loss. With this ideology, a number of new projects have been added in record time that refer to SafeMoon and hope for a similar success. Here are a few examples:
- dragon moon
Please note that these are merely examples quoted based on their designation. No research has been done on these coins and protocols. It is therefore essential to always do your own research before investing.
SafeMoon has of course an unprecedented popularity due to the success stories. As an investor you are of course also most interested in maximizing your profits, preferably in the shortest possible way. Nevertheless, it is important to look at the foundations of a protocol. In this way you can make a long-term estimate yourself to what extent you believe in their roadmap and their objectives. You can ask yourself whether these community-driven protocols have a future and what this future will look like.
Currently, the protocol is made up of the three foundations where you pay a 10% penalty fee if you want to sell your tokens, where they are then distributed among the current holders. It is therefore important to consciously look at this structure and to what extent it contributes to the project. The new roadmap and the extension to an NFT platform can give a new dimension to the protocol, but this will also have to be seen in the future. Is Safemoon a hype or are these community-driven protocols the future of Decentralized Finance?
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com