Safemoon has become the talk of the town, and this is why, the release of their new wallet, which is still under beta testing. However, details are classified.
Here’s a quick rundown of what Safemoon is.
SafeMoon is a digital currency launched on the Binance blockchain with a market cap of $2.5 billion.
One of the unique features is that it taxes every transaction made and redistributes tokens to its holders.
If you’ve come across the #SAFEMOONWALLET hashtag on Twitter’s top trending hashtags today, you may not have realized the token with a $2.5 billion market cap—sometimes perceived as a Ponzi scheme actually has some product news.
Today, SafeMoon broke the news on its opened sign-ups for a closed beta version of its new wallet. This is great news, as it’s welcoming about 500 users to test the new product, which will purportedly hold the SafeMoon token.
The emergence of cryptocurrency has brought about dozens of Bitcoin forks, Ethereum wannabes. Even Dogecoin knockoffs have gone up for a few days only to dump forever into the dustbin of CoinMarketCap’s servers. People are not just buying “shitcoins” for the long haul unless these coins fulfil some benefits beyond financial transactions.
SafeMoon, just like Bitcoin, has been able to motivate people to hold tokens as a seemly safe way, as these tokens can’t be spent on anything other than cryptocurrencies.
Cover your ears, Grover Norquist, but here’s a breakdown of the way it does it: a 10% tax on is deducted for every transaction, regardless of whether it’s a buying or selling transaction. A portion of the tax also goes directly into a liquidity pool. Instead of decreasing supply to get a price hike, the idea is that this equilibrates SafeMoon’s price floor.
SafeMoon calls its incentives, “reflections.” The reason is that it spits half of the transaction fee amongst holders, this is however based on the number of tokens they own.
Theoretically, then, every time a whale cashes out, it may create a short-term splash but no long-lasting ripples.
Since its advent in March 2021, the price of SafeMoon has been all over the place. According to the highlights by CoinGecko, it is currently down to about 60% from its all-time high, it is however up 9,624% from its introductory low. Regardless, its floor remained at similar levels after coming down in May.
Many people perceive Safemoon to be a Ponzi scheme because holders aren’t panicking, probably because they still have extra tokens at hand, while some of those who bought at the top are waiting to receive reflections that will most likely take them back to zero, however, they have to wait for others.