Safemoon Price: Everything you Need to Know

SafeMoon is a DeFi project with over 2.5 million holders and over $50 million in liquid assets. It has a fully diluted market valuation of over $1 billion.

SafeMoon

 

This is a community-driven DeFi protocol that incorporates the SAFEMOON deflationary utility token. It is based on the Binance Smart Chain and uses the BEP-20 token standard (BSC). The project was started in the first quarter of 2021 and included numerous features such as static incentives, the acquisition of liquidity pools, and a burn strategy.

SafeMoon’s Contribution to the Crypto World

Numerous projects with significant payouts are available on the cryptocurrency market. It is not uncommon to hear of platforms offering a 300 percent or even 500 percent annual percentage yield in the cryptocurrency market.

However, volatility continues to reign, and the majority of existing DeFi platforms are constrained by fundamental limitations, such as the famed rug pulls. Additionally, there are issues with flawed smart contracts that allow for exploitation. It provides a method for simplifying the DeFi procedure. It instills an unprecedented level of security into the yield farming or liquidity mining process as a whole.

This is a community-driven system that aims to provide investors with a respectable annual percentage yield (APY) through an automated liquidity generation and token burn process. Additionally, the protocol’s smart contracts are validated by Certik, adding to the sense of security that SafeMoon users can expect.

READ:  How to Withdraw from Trust Wallet

Who Is Responsible for SafeMoon?

Thomas Smith (CBO), John Karony (CEO), Hank Wyatt (CTO), Jack Haines (COO), Jacob Smith (web developer), and Charles Karony are the project’s leaders (executive assistant).

SafeMoon: How Does It Work?

The SafeMoon protocol is built on the platform’s BEP-20 SafeMoon token, which uses a combination of auto-liquidity generation and reflection tokenomics to operate. The deflationary mechanism of the cryptocurrency has already consumed 400 trillion tokens.

Each of its transaction carries a 10% cost, with 5% of the fee distributed to its holders and the remaining 5% split in half.

From the split percentage, half is sold into BNB (Binance Coin) via a smart contract, while the other half is instantly paired with BNB and added to PancakeSwap’s liquidity pool.

Through this approach, those who retain their SAFEMOON tokens are rewarded with static prizes, while those who sell their SAFEMOON tokens are disincentivised from continuing to sell. As a result, the token’s price is stabilized and the project’s liquidity is funded.

What Is So Special About SafeMoon?

SafeMoon distinguishes itself from the competition with the following features:

Static Rewards

The static incentives consist of the 5% tokens granted to its owners. The amount distributed is proportional to the volume of tokens traded, as the 5% fee is included in the 10% transaction fee. This alleviates the negative sell pressure that frequently occurs when early adopters liquidate their tokens.

READ:  Polkadot - How Does it Work?, How to Buy and Polkawallet.

Manual Burn

This feature implements a SAFEMOON token burn strategy, in which the number of tokens is reduced in order to boost their price and demand.

Automatic Liquidity Pool

It has a self-sustaining liquidity pool that collects tokens from transactions in the form of transaction fees and deposits them in SafeMoon’s liquidity pool on PancakeSwap. This provides a strong floor for the token’s price. Additionally, it penalizes selling operations, dissuading whales from dumping the token on exchanges.

SafeEarn

Apart from the gains made by SAFEMOON holders merely by HODLing the token, users get additional incentives through SafeEarn. SafeEarn is a newly developed decentralized application on the Binance Smart Chain network that enables SafeMoon token holders to stake their tokens (or convert them to SafEarn tokens) and earn additional SafeMoon automatically.

Summary

The SafeMoon token is currently trading at $0.000001625. While the road to one cent may seem distant, planned enhancements to the SafeMoon platform, which will include a SafeMoon wallet and an exchange, will increase interest in the project.