SafeMoon (SAFEMOON) - a cryptocurrency that wants to have a price "from the moon"

6000% increase in price per month and over $ 1,3 billion in capitalization, although the token has only been in existence since March 8, 2021. The principle of this cryptocurrency is based on rewards for long-term investors and penalties for speculators who want to quickly trade units safemoon. Will it succeed?

We continue the cycle of the Forex Club portal, in which we analyze and describe the largest, highest-valued, most interesting, most developmental, advanced and also the most controversial cryptocurrency projects around the world. Today it's time for another DeFi (decentralized finance) project, which has interesting assumptions and has quickly become one of the highest-valued tokens on the international market.

What is SafeMoon

Safemoon Protocol token first of all, it is to allow direct access to financial services without the need to use traditional banking. Its purpose is to offer automatic liquidity, which will allow awards to be granted to investors who support the project for longer. Their remuneration will come from ... penalties for speculators, who, in turn, will get rid of SafeMoon units too quickly and in too much. 

Investors liked such assumptions, not to say that at the beginning they were even delighted. In the first few weeks from launch, the token price increased by over 6000%, reaching a capitalization of 2,5 billion. Today it is more than a half lower, but it is still an impressive result - especially for such a young project.

How SafeMoon works

How does the project raise funds for rewards for long-term investors? After all, for someone to get something, someone else has to lose… and that's exactly how it is. SafeMoon defends itself against speculative purchases through an automated protocol. 

Sellers too much and lose 10% of their tokens too quickly. Each such transaction is 10% of the "penalty fee". Half of this pool immediately goes to all token holders, in proportion to the number of token holders and the time they have them on their accounts. The second part is cut in half and is sold with a token Binance cryptocurrency exchanges - BNB. The others are combined with BNB Faucet and added to PancakeSwap as a liquidity pair.

In short - the longer and more tokens we have on the account, the greater the rewards we receive when others get rid of them. Ultimately, "strong hands" are to earn the most in the long term, even if the price of tokens will drop. Deflation is also to be ensured by the possibility of manually burning tokens. 

The Safemoon protocol also has development plans in the field NFT tokens and launching an exchange of such tokens. The sub-account dedicated to this purpose already has approx. USD 1 million and the pool is constantly growing dynamically. The stock market may be a new growth stimulus for a token, the possession of which will surely provide lower transaction fees, so it will pay off for everyone to buy and hold it. 

On the other hand, some cryptocurrency market observers point out that projects that grew very quickly at the very beginning after launch, often recorded equally rapid price drops later. Only a few managed to return to record valuations or beat them after they began to be more widely available on the largest cryptocurrency exchanges. Meanwhile, SafeMoon can be purchased from May 11, 2021 and since then, the price of this cryptocurrency has dropped by 24,3%.

Cryptocurrency Quotes

As of 11.08.2021/0.00000226/582, each SafeMoon token costs 958 USD. 646 of the target 330 units are traded, which translates into a market cap of over $ 045 billion. From the beginning of the official listing, the most paid for the SafeMoon cryptocurrency was May 1, 000, when it was valued at USD 000.