A brand new cryptocurrency is preparing for a shot on the moon like Dogecoin, Bitcoin and Ethereum. However is it actually primed for outstanding success?
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Launched in March 2021 and having racked up a couple of million customers already, SafeMoon is a blockchain-based cryptocurrency much like Dogecoin, Bitcoin and Ethereum, however with just a few key variations.
The founders famous some key points with many digital currencies that they wished to repair, akin to value volatility. To discourage day-trading, which generally causes nice value fluctuations, SafeMoon will reward long-term holders by imposing a charge of 10% on every sale. Half of those charges shall be distributed to current coin house owners, within the type of a dividend paid in further cash.
Whereas it’s nonetheless very unclear what SafeMoon will permits buyers to do, the promoting charge discourages individuals from promoting. You might be merely paid additional to carry.
“The purpose right here is to stop the bigger dips when whales resolve to promote their tokens later within the sport, which retains the value from fluctuating as a lot,” SafeMoon defined in a company whitepaper. Whales is the phrase for big holders of a coin.
Moreover, the corporate determined to go for handbook burns as an alternative of steady burning, i.e. burning being the destruction of cash so as to add shortage and thus worth to the currency. SafeMoon believes that handbook burning will give them extra management of the coin’s provide and value.
In keeping with CoinMarketCap, the SafeMoon Coin is value $0.000005084 as of this writing, up from its $0.0000000010 launch worth. Its present market cap has fluctuated between just below $3 billion and almost $4 billion.
After all, these numbers are removed from making it one of many high cryptocurrencies like Dogecoin — it’s #202 within the high cryptocurrencies rating as I write this — however it’s already attracting a whole lot of consideration, as it’s comparatively cheap and gives a brand new perform to reward holding. Bear in mind, even our favorite canine foreign money began off at a small value earlier than taking pictures for the moon.
Who’s behind SafeMoon?
We all know little in regards to the creators of SafeMoon, besides that there are six leaders. The CEO is a person named John Karony who was once an analyst for the U.S. Division of Protection. SafeMoon’s CTO, Thomas Smith, has spent the final two years working with a number of blockchain and DeFi organizations. The COO, Jack Haines-Davies, has solely listed firm names on his LinkedIn profile, although none of them appear to have an internet site explaining their function.
What’s subsequent for SafeMoon?
The venture laid out a roadmap for the yr. The primary quarter let SafeMoon double the dimensions of its staff and begin engaged on a marketing marketing campaign. The following steps within the plan are the event of an app — although it’s nonetheless unclear for what function other than facilitating SafeMoon buying and selling — a pockets and a few video games.
SafeMoon can also be trying to be listed on main cryptocurrency exchanges like Binance. Moreover, they wish to construct their very own change – the place they might provide NFTs –, maintain increasing their groups and open workplaces on the previous continent. The final half of the yr shall be devoted to complete the SafeMoon change and open an workplace in Africa.
Critics of the SafeMoon venture
The venture does have its critics, although. For instance, SafeMoon owns greater than 50% of the liquidity and refuses to repair it. What’s stopping them from promoting every little thing and making a rug pull, making it inconceivable for different merchants to promote? All funds can be misplaced, and we’d solely be witness to an exit rip-off.
SafeMoon has additionally been in comparison with Bitconnect, which turned out to be nothing however a Ponzi Scheme, the place any income made sooner or later can be primarily based on somebody paying extra for the token than you probably did additional down the road. This might imply that early adopters can be the principle beneficiary of the system, leaving solely the scraps for late joiners. As cryptocurrency investor and influencer Lark Davis stated: “Bear in mind, simply since you make money off of a Ponzi doesn’t change the truth that it’s a Ponzi.”