Safemoon crypto was released fairly recently, in March 2021, and is a BEP-20 token that was launched on the Binance Smart Chain (BSC) ecosystem. Very quickly, Safemoon became the third biggest token by market cap on Binance. One month after its release, in April, the price of this cryptocurrency skyrocketed and took everyone by surprise. At the time of writing, its market cap is $801,683,123 and its price is $0.00000139.
The slogan of the token is “Safely to the moon” and it was meant to charge a 10% fee on transactions with 5% distributed to the token holders and the other 5% to wallets and turned into another currency called Binance Coin. The latter is owned and controlled by the creators of Safemoon and is considered to be a liquidity pool. Here are more details about this new and interesting cryptocurrency that is seemingly getting ready to take the world by storm.
More about Safemoon crypto
According to the official website of the token, Safemoon has three main components that are crucial for its core concept.
- Reflection: meaning the aforementioned 10% charged fee that then gets distributed among the token holders;
- The second is another fee that is charged on transactions which then is given to liquidity pools on platforms like Pancake Swap;
- The third one is a token burn that takes place with each trade. The exact percentage of the transaction that gets burned is not mentioned anywhere on the internet. However, the Safemoon whitepaper does mention the fact that the team’s intention is to perform manual token burns. So far, 416 trillion tokens have been burned.
How did Safemoon come to be?
The Safemoon crypto was created and is currently run by a team comprised of six members. The token’s CEO is John Karony, the CTO is Thomas Smith, and the Community Manager is Trevor Church. These three people have previous common history having founded an indie game studio called TANO. Currently, it’s unknown if this company is still active or not.
The rest of the Safemoon team also has experience when it comes to management, game, and web development. All of the team members have spent a certain number of years at universities and colleges but Henry Wyatt is the only one with a four-year degree under his belt.
Recently, there have been controversies concerning this team’s professionalism and authenticity on the cryptocurrency market. These people’s credentials are not the absolute best and the way they promote their token on Twitter could seem unprofessional to some. Moreover, the fact that they are currently selling merch for Safemoon, like hoodies and hats, is also unusual for a cryptocurrency founding team.
Safemoon versus Bitcoin
It’s also important to note that as opposed to Bitcoin, which uses a Proof of Work consensus mechanism, Safemoon is based on a Proof of Authority one. This means that the creators of the block are called validators and that they are handpicked by Binance. Moreover, Binance has complete control over the blockchain, deciding who is a validator and who isn’t. Besides that, all of the chain’s users must adapt to the changes that Binance is doing, regardless of their personal opinion.
Is Safemoon crypto worth investing in?
Nobody can tell you whether or not you should invest in Safemoon. This is a strictly personal decision that depends on multiple personal factors. However, it’s important to know that where Safemoon goes from here depends on Binance. There are also some risks involved, like the volatility of cryptocurrencies in general, the future of Binance, and the legitimacy of the developer team.
So, investing in Safemoon now would be a choice purely based on speculation and hope. As an investor, you should also look a Bitcoin and where it could go. Should it continue its bull run, it could drag Safemoon with it. However, putting time, effort, and money into speculations could be a very risky move but one that certain people are willing to take.
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