What is Safemoon and How does it Work?

Safemoon

Safemoon is a new cryptocurrency token used to communicate with your friends and family, using a messaging system that works like a virtual private network (VPN), but without any of the security concerns that come with using one. It allows you to chat on-the-go from any device you’re connected to the internet from—even if it’s not your own—and it also allows you to send money through the app.

Safemoon was available in the market on March 2021. Binance’s blockchain technology was used to produce the coin. This token gained popularity after receiving endorsements from several celebrities.

This cryptocurrency has a unique characteristic in that when you sell the token, you are charged a 10% fee. This fee is in addition to the additional fees that a cryptocurrency exchange would charge for enabling the selling of the token.

The costs, according to Safecoin inventors, are intended to discourage selling and encourage bitcoin keeping. The cryptocurrency absorbs revenue from costs and sales and distributes 50% to holders. This is a “reflection” distribution. The remainder is allocated to a liquidity pool, which ensures Safemoon’s price stability.

Safemoon was created by whom?

So, who created Safemoon? The coin was designed by six engineers. It was later deployed in the first quarter of 2021 on the BSC blockchain. The identity of Safemoon’s owner remains unknown. Six leaders have been named by the firm.

Thomas Smith is the chief technology officer, while Trevor Church is the community manager. John Karony, the CEO, is also a Safemoon inventor. He worked as an analyst for the United States Department of Defense.

Thomas Smith has previously worked with organizations dealing with decentralized financial products and blockchain technology. Jack Haines-Davies is Safemoon’s chief operations officer. Previously, he worked for Ben Philips and LikeandShare. However, it’s unclear what they’re all about.

How Does Safemoon Function?

This cryptocurrency uses the same technology as many VPNs, including the Tor Browser. If you’ve used Tor before, then Safemoon will be familiar territory for you. But if not, here’s what you need to know: Safemoon connects your computer/smartphone/tablet/etc., through its servers, to another server running on Safemoon’s servers. This way, all of your messages are kept private and encrypted between both servers.

The Binance Smart Chain Blockchain was used to create Safemoon. This system was designed to encourage long-term investments while discouraging selling. Sellers are paid a 10% fee, with half of the proceeds going to current holders. The remaining half is held in the Safemoon liquidity pool. This is done to keep prices stable.

Certik, a blockchain security firm, conducted an audit on Safemoon transactions and discovered that the owners get tokens created from the liquidity pool. As part of the cost, the owners receive token control. According to Certik, this was a big concern, and he encouraged Safemoon to strengthen its security features.

The Safemoon system is not just for businesses. It can be installed by homeowners to keep an eye on their own property while they’re away. It is a new way to manage the risk of cyberattacks. It uses blockchain technology to create a decentralized platform that allows users to safely access centralized services

Safemoon’s creators manually lowered the amount of Safemoon as well. This is frequently done to limit supply and keep prices high. Safe moon’s price skyrocketed after its launch in March, reaching a peak of $0.000014 in April. During this time, safemoon transactions were at an all-time high. This value has since dropped dramatically since then.

Safemoon Features

This cryptocurrency distinguishes itself from other cryptocurrencies for a variety of reasons. The coin was designed to be resistant to volatility. Reflection and LP acquisition are two Safemoon characteristics.

Reflection
Safemoon reflection is a feature in which static incentives, known as reflections, seek to compensate for drops when early investors opt to sell their tokens later on. This guarantees that prices do not very much.

Advantages of Safemoon

Important Crypto Brand
To be relevant and gain popularity, each cryptocurrency must have a dedicated fanbase. Due to excellent branding, the value of the Safemoon currency surged upon its debut. Safemoon’s branding is first-rate, and it comfortably competes with the market’s other 13,000 cryptocurrencies. Even in the next years, the cryptocurrency will rely heavily on branding to compete with other noteworthy currencies.

Income from Passive Sources
The platform is intended to penalize token sellers while rewarding token holders. Holders can make passive revenue every time an investor sells their tokens. This is often when the value falls and the pressure to sell begins. Passive income is paid to investors that retain their coins. Safemoon passive income benefits investors in the long run.

Dave Portnoy and Other Notable Investors
Safemoon has used certain high-profile celebrities to promote its message. In May, the creator of Barstool Sports invested $40,000 in Safemoon. Dave Portnoy’s Safemoon investment greatly enhanced the confidence of others in investing in bitcoin. Jake Paul is another well-known star who praised Safemoon shortly after its release.

The disadvantages of Safemoon

Volatility and liquidity
Like every other cryptocurrency, there is a considerable danger of a lack of liquidity and a high amount of volatility. The coin levies fees in order to discourage selling. It’s also not available on major cryptocurrency exchanges like Gemini or Coinbase Global Inc. As a result, safemoon’s liquidity is lower than that of other cryptocurrencies. Furthermore, Safemoon’s volatility has increased, with the value decreasing more than 80% after surging a month after its inception.

There is no utility.
In terms of security, speed, or other aspects, the coin has no edge over other cryptos. Because no large companies accept Safe Moon as a payment option, it serves no purpose.
It is also difficult to convert it for other cryptocurrencies or actual dollars because it does not trade on the big centralized crypto exchanges.

Ownership Concentration
Critics have accused major cryptocurrencies such as Bitcoin of being Ponzi schemes. However, the centralized ownership of Safemoon has piqued the interest of detractors the most. For example, the CEO is said to control more than half of the coin’s liquidity. There are reports that insiders earn enormous amounts of passive money. There is no definitive evidence that Safemoon is a fraudulent scam, but it appears that creators and early investors gain at the expense of others, as with many other altcoins.

Is Safemoon secure?

Safemoon is a malware program that can be installed on an infected device to steal your private data and send it to the attacker. The malware infects user’s devices by exploiting vulnerabilities in the operating system of the target device, i.e., Windows, Mac OS X, Linux, etc.

You may be asking if Safemoon is safe to purchase. What you want to achieve is what determines whether you made a smart purchase or not. Since its peak, the cryptocurrency has witnessed a dramatic drop in value. However, because the coin accomplishes nothing and future expectations are dependent on other buyers, purchasing Safemoon may not be a viable investment.

Conclusion

Again, whether Safemoon is a wise investment or not depends on your goals. Since its peak, the cryptocurrency has witnessed a dramatic drop in value. However, because the coin accomplishes nothing and future expectations are dependent on other buyers, purchasing Safemoon may not be a viable investment.

Investing in any cryptocurrency may be extremely dangerous. All cryptocurrencies are highly volatile, and you should conduct extensive study before sinking your toes and investing. If you are certain, it is an investment you want to make, you may also seek a professional advisor. Above all, make sure the money you’re trading with is real money and something you can afford.

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