To kick out 2022 with a bang, the interest-paying decentralized finance (DeFi) token safemoon is battling to keep some of its gains, even though its current price of $0.000002121 is only 21% off its previous high. Safemoon was founded in March 2021 as a decentralized finance (DeFi) token aimed at countering popular meme cryptocurrencies like dogecoin (DOGE) and next shibainu (SHIB).
According to crypto trading signals, The term “ nextsafemoon ” comes from the phrase “to the moon” that cryptocurrency traders who are optimistic about the price of dogecoin use on social media. What is the mechanism behind safemoon? On the Binance Smart Chain, the coin is a yield-farming DeFi token that operates the SafeMoon protocol (BSC). Yield farming is a method of remunerating crypto investors with more tokens in exchange for interest payments.
According to the official website, the protocol is built on three functions: reflection, liquidity pool (LP) acquisition, and burn. To encourage holders to maintain their tokens, known as ‘hodling’ in the cryptocurrency market, the incentive system for keeping safemoon tokens mirrors the volume traded. To sustain the value of safemoon, the contract contributes tokens from sellers and purchasers to the LP to provide a price floor.
Attracts Investor Interest
From the time of debut, the price of the safemoon rose by 46,533 percent to $0.00001399 on April 20th. On the 2nd of May, the price fell to $0.00000361, before recovering to $0.00001039 on the 15th of May. However, around the end of May, the crypto markets began to sell down significantly, and the price plummeted to $0.0000015 on August 18th.
The value of safemoon began to grow at the end of August, as the company prepared to publish its software wallet, as well as Android and iOS apps, towards the end of the month. However, due to technical challenges, the launch of the wallet was postponed until August 28th, causing the price to drop from $0.00000354 to $0.00000281.
In September, the price continued to decline, reaching $0.00000119 on September 10th. The SafeMoon Wallet for Android was released on September 13th, and on September 15th, the price had risen to $0.000001853 while waiting for the App Store to approve the iOS app, the creators offered available the beta version on September 30th.
The developers of the next safemooncryptocurrency released a new plan on October 3rd. In addition, there will be a coin burn with 575 billion coins in circulation and Version 2 of the coin, which has a new total supply of one trillion. The new version has a lower charge to permit the use of safemoon for commerce, but the 10% fee will still apply to daily transactions.
The creators of the new version of the currency may be able to solve the 12 weaknesses discovered in April by blockchain security company Certik in its security analysis of safemoon. In addition, there was a danger associated with the buildup of liquidity tokens, which Certik has now remedied. The introduction of a hard wallet has been postponed to 2022 “to focus on wallet development”.
The SafeMoon Wallet applications for Android and iOS have been downloaded 600,000 times, according to the company’s Twitter account on November 6th. There were 2.9 million safemoon holders, according to the report. More ether and BSC currency swap pairs will be available in the applications. The SafeMoon Wallet gained the ability to acquire BNB coin, Binance’s native cryptocurrency, on October 14th.
The Future OfSafemoon
According to DigitalCoin’ssafemoon crypto price forecast for 2022, the currency might sell for $0.00000356 in 2022, $0.00000414 in 2023, and $0.0000055 in 2025, according to the safemoon crypto price prediction for 2022. Safemoon may be worth $0.00000892 on average by 2028, according to DigitalCoin. Price Prediction, on the other hand, predicted that the safemoon price may rise to its prior peak later in the decade.
Apart from being a vehicle for speculative investment, the safemoon website makes no mention of the coins or the organization’s worth. Internet of things initiative named Operation Phoenix, which reportedly connects wind turbines in The Gambia to enable greater access to the internet, is being discussed on social media.
A YouTube video provides the company’s principal remark on Operation Phoenix. It’s not obvious what role, if any, the cryptocurrency plays in this process. Because cryptocurrency markets are so unpredictable, it’s impossible to expect what a coin’s cost will be in aa small amount of hour and much more hard to make long-term predictions. As a result, experts can and do make incorrect forecasts.
A Good Investment
In 2021, one of the newest cryptocurrencies to reach the market was SafeMoon. This crypto project is a decentralized financial system that is driven by the community. According to Utah Business, the currency already has over 2.9 million holders after its original debut in the first quarter of 2021. There are 585.536 trillion coins in circulation, according to CoinMarketCap.
The creators of SafeMoon have a long-term vision for the cryptocurrency’s future success. Over time, holders get passive benefits, while selling is discouraged by penalties. Here is the quick summary:
- $0.000002111 is the current price.
- $1.236 billion in market value
- 210th in the market
Reflection, sometimes known as static rewards, is an attempt to address the issues with mining payouts. It accomplishes this in two ways: first, the amount of the reward is dependent on the number of coins traded, reducing the selling heaviness caused by early adopters selling their change, and second, it support those who own the tokens to gather higher expenditure based on the total number of tokens owned.
In contrast to typical mining payouts, this is a static technique. Because the incentive value falls with time, early users of Bitcoin — and other tokens – earned greater rewards for their mining efforts than late adopters. As a result, early adopters tend to hold more crypto than newcomers. The idea behind SafeMoon’s static reward system is to prevent early adopters from mass-selling their currencies.
The “secret sauce” of SafeMoon, according to the official white paper, is the automated liquidity pool. For both buyers and sellers, this mechanism establishes a strong price floor. Long-term stability is the goal of the design. The penalty for selling coins is a unique element of SafeMoon. The smart contract levies a ten percent fee for each transaction.