Are you concerned about what Safemoon is all about, is it legit or a scam? No worries, as in this article, we will be discussing Safemoon.
Things you should consider before making a commitment, and some amazing facts about them.
What is SafeMoon?
SafeMoon is another altcoin, launched in the recent March 2021, on the Binance Smart Chain network. Just like everyone else following the lunching of this coin, developers burned all their tokens, to participate in the coin offerings. With regards to this, it is important to note that while burning over 40% of the total token supply, SafeMoon has secured about 2.5 million users to its protocol. However, to address the issue of impermanent loss, the altcoin was created with an additional feature that enhances it to buy and hold its token rather than speculating to drive up the price. SafeMoon has quickly risen, securing a sustainable position of the Binance’s third-largest token by market capitalization.
Some other cryptocurrencies are noted to have deviated from their main purpose, having become little more than commodities, with investors, traders, and speculators simply using them as tradable assets and investments which were originally meant to serve as an alternative to the centralized fiat currencies controlled by Bitcoin, central bankers, and many other cryptocurrencies. Following the critics of some people, against SafeMoon, saying the token is a shitcoin, Ponzi scheme, and a scam, this is a serious accusation and in this article, we will take you through some detailed matter in this piece. Learn more:
IS SAFEMOON SCAM?
With no addle, SafeMoon has been gaining serious attention this year, having risen quickly to secure a sustainable position of the Binance’s third-largest token by market capitalization. However, the question remains; is it a safe place to put your money? This altcoin with regards to cryptocurrencies that seemed to be sprouting out of the ground at an alarming rate has shown many similarities to what happened in 2017. Now to our focus area, varying sources had proven the fact that Safemoon is registered, regulated, and licensed by a known government agency, known as a regulatory body.
In this section of the article, we have been able to compile a list of some facts about Safemoon, that you should consider, while making your decision. SafeMoon is another BEP-20 token, launched in the recent March 8 2021, on the Binance Smart Chain (BSC) ecosystem. Safemoon has secured a sustainable position of the Binance’s third-largest token by market capitalization. While utilizing a proof-of-authority as its consensus mechanism, SafeMoon is built on the Binance Smart Chain. Corresponding to the poof of authority, the block creators are notable as validators, chosen by Binance, to make the blockchain centralized.
However, as a user of its platform, it is required that you trust Binance and rely on it for security, due to the centralization of the Binance Smart Chain.
SafeMoon is built to have three core components
However, while we discuss Safemoon, it is important to note that It adopts three core components, which are:
But you need to note that transactions are taxed with a 10% fee, which is split into two equity.
Consider that 5% goes for the reflection rewards, alongside, 5% is meant to be for liquidity pools, however, 2.5% of the 5% that is sent to liquidity pools is therefore converted into Binance Coin (BNB) just to facilitate the liquidity of the SafeMoon and Binance Coin pair.
Varying sources had proven that there was a mania of initial coin offerings, although seem hard to affirm if real or which ones were outright scams, but currently, there is the availability of over 10,000 different cryptocurrencies, all claiming new use cases.
What Issue is SafeMoon Attempting to Address?
Following the innovative lunching of Safemoon, we will discuss some of the issues that Safemoon addresses in this section of the article. These issues include, but are not limited to:
The impermanent loss dilemma:
SafeMoon employs three basic techniques to combat temporary loss in each deal, resulting in a more robust protocol. There are three types of combat tools in this set: manual token burns, static rewards, and automatic liquidity pools.
What Issue is SafeMoon Attempting to Address?
While yield farming’s are being addressed by the introduction of static incentives, commonly known as “reflection,” they are becoming increasingly popular as a result.
Static Reward Systems.
In view of the truth that the reward cost is dependent on the token’s total trade and that early adopters are lowering the token’s selling pressures of farming the enormously high APYs, the SafeMoon developer believe that initiating static rewards would be a smart way to solve problems associated with harvesting the token’s yield.
Burns inflicted manually.
Burns have been used in a diversity of protocols, and they can occasionally create a change, although they are not always efficient. In the instance of continuous automated burns, they had a significant impact during the beginning of the process, but they’re still in use now. As a result of the incapacity of the burn to be handled in a way that maximizes its force, the impact progressively loses velocity. In comparison, a burn regulated by the team and based on project accomplishments can help maintain community participation strong while also having a positive influence on the coin. It is critical to note, however, that Cypto communities embrace and appreciate the openness that comes with trackable publicized burns. A thorough burn strategy has been implemented by SafeMoon to ensure long-term customer happiness.
Automatic Liquidity Pool System.
When it comes to SAFEMOON’s secret sauce (Automatic LP), says that this innovation will give great advantages to both holders as well as traders of the platform. There is a price floor because buyers and sellers want tokens, so the LP has more of them, which makes the price go down. The imposition of a ten percent fee on SAFEMOON is being considered. By acting as an arbitrage-resistant mechanism, this technique helps to ensure that SAFEMOON continues to be valued as a reward for holders, rather than as a speculative investment vehicle. This approach addresses a number of concerns that have arisen in the context of DEFi reflection tokens.
Is SafeMoon a Secure Platform?
It is no doubt that the cryptomarket is volatile when it comes to examining price patterns, and Safemoon is no different. Although it is exciting to predict a rapid perspective for significant profit over short periods of time, it is equally exciting to anticipate a rapid prognosis for equally large losses. When it comes to profits and losses, Safemoon, on the other hand, has a reputation for being completely extravagant in both gains and losses on any investment. Ponzi schemes and “shitcoins” have been used to describe this particular project, but it is possible to refer to it as a Ponzi scheme because profits are gained through payments from other people who pay more for the token at a later time. In this empirical investigation, the distribution of the selling charge is similar to the pyramid structure of a Ponzi scheme, as demonstrated by the data. Furthermore, a number of different sources have revealed that SafeMoon has been compared to BitConnect, which was shut down in 2018 after two US state securities regulators warned and educated its investors about the company’s Ponzi scheme-like nature, according to the sources.
It is undeniable that the platform has made a large number of people extremely wealthy in its first few months of business. Despite the fact that it appears to be incredibly enticing, you should keep in mind that this is exactly how all Ponzi schemes begin and acquire momentum. It is undeniable that SafeMoon has made a large number of people extremely wealthy in its first few months of business. Despite the fact that it appears to be incredibly enticing, you should keep in mind that this is exactly how all Ponzi schemes begin and acquire momentum. The authors hope that this page has provided you with a better understanding of Safemoon and has answered the question Furthermore, we feel you have gained a better understanding of how Safemoon works, its features, as well as how and which problems it resolves.