With over 7,000 cryptocurrencies available on the market today and more getting added daily, it can be tough to know which ones to research and invest in. On the other hand, popular coins like Bitcoin and Ethereum have paved the way for various emerging digital assets. This article explores one of such fast-growing cryptocurrencies, SafeMoon.
Within just a few months of launch, Safemoon has become one of the hottest coins on the market today. So could Safemoon become a millionaire-maker coin? Before we find out, let us understand the fundamentals of the blockchain platform.
Safemoon: What Is It?
The name SafeMoon expands to “Safely to the Moon” and sells itself as a Defi token. This getting to the moon phrase was introduced with Dogecoin, and now SafeMoon also follows it. SafeMoon was launched in March 2021. The platform intends to mend the price volatility issues, unlike other currencies.
SafeMoon exists on the blockchain and does not leverage any financial institutions or exchanges as intermediaries. Instead, it promotes peer-to-peer exchange and has a total supply of 1 quadrillion tokens as per the whitepaper released.
SafeMoon is led by John Karony, CEO, an All-Source Analyst for the US Department of Defense. Thomas Smith is the CTO, who previously served as the CIO of Goldsmith Blockchain Consulting. The COO of SafeMoon is Jach Haines-Davies, who earlier worked in Likeandshare LTD and Ben Phillips Media as a Manager.
Is Safemoon a Millionaire-Maker Investment?
Despite its volatility, the SAFEMOON coin has garnered considerable community support from investors and traders who acknowledge it as a millionaire-maker investment.
The Safemoon team has covered future plans on their website and through regular video livestreams. These plans include releasing a Safemoon app, wallet, and video game and creating a Safemoon exchange.
The team also wants to integrate Safemoon with the African market and turn it into "the fuel for the freedom of the unbanked" through "Project Phoenix."
For these and many more reasons, Safemoon could become a millionaire-maker coin and grow immensely.
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Factors That Drive Safemoon To Be A Millionaire-Maker Coin
Several factors affect the price of Safemoon, from the development team to the way it functions. These factors can go a long way in making Safemoon a viable option for crypto investors.
Here are some factors that could make Safemoon a millionaire-maker:
1. Unique Features
With solid fundamentals in place, Safemoon is likely to rally in the near future.
Safemoon was designed to resist volatility by rewarding investors for holding their coins. It works with three simple functions: Reflection, LP Acquisition, and Burn.
Static rewards, known as reflection, attempt to correct the problems with mining rewards. It does so in two ways. First, the reward amount is conditional upon the volume being traded, which mitigates against selling pressure caused by early adopters selling their coins. Second, it encourages those holding the tokens to collect higher payments based on the total number owned.
This static approach differs from traditional mining rewards. For example, with Bitcoin (and other tokens), early adopters earned more rewards for their mining efforts than latecomers because the reward value decreases over time.
That means early adopters generally have more crypto than new buyers. SafeMoon’s static reward approach attempts to mitigate the problem of early adopters selling their coins en masse.
LP Acquisition: According to the official white paper, the automatic liquidity pool is the “secret sauce” of SafeMoon. This function creates a solid price floor for both buyers and sellers. The design is for long-term stability. The unusual feature of SafeMoon is the penalty for selling coins. For every transaction, the smart contract charges a 10% fee. 5% of the fee is split among existing holders, encouraging investors not to sell their tokens.
According to the white paper, the goal is to “prevent the larger dips when whales decide to sell their tokens later in the game, which keeps the price from fluctuating as much.”
Manual Burn: Most cryptocurrencies undergo a process called token burning, which permanently removes tokens from circulation. This process is an attempt to create increased scarcity and value. Some crypto projects perform continual coin burns from the start.
However, Safemoon employs manual burns instead of continuous burns. The argument is that this process can implement a beneficial burn strategy for long-term investors. It also allows the burns to be announced and tracked publicly, leading to increased transparency.
2. Network Architecture
Safemoon is a fast-growing DeFi protocol and makes a stellar investment option.
Safemoon is a BEP-20 token issued on the Binance Smart Chain. The creator of Binance, Changpeng Zhao, has admitted that BSC is not decentralized. In a since-deleted tweet, Zhao called BSC CeDeFi, which is short for centralized DeFi and a bit of an oxymoron.
The Binance Smart Chain uses a consensus mechanism called proof of authority. In this system, the block creators are validators. These validators are pre-approved and chosen by Binance. To be approved, they must confirm their real identities, invest money to prove long-term commitment, and be equal to all other candidates, making proof of authority reputation-based by design.
In this model, Binance has absolute control over the blockchain. They decide who becomes a validator, and they remove validators at their discretion. All users must trust that Binance will behave in everyone's best interest. If Binance decides to alter any aspects of the chain or ecosystem, it has the power to do so.
3. Unique Fee Structure
Investing in SAFEMOON now could help you realize massive profits in the future.
A unique feature of Safemoon is that sellers pay a 10% fee. So if you have 100 million Safemoon and sell them all, 10 million would go towards that fee.
Half of the fee is redistributed to all existing owners of Safemoon. The other half is used for a liquidity pool with Safemoon and Binance Coin (BNB). According to Safemoon's white paper, the 10% tax on every sale is designed to reward long-term holders and stabilize the price.
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Given the price history and network fundamentals, Safemoon is likely to become a millionaire-maker investment. However, a calculated investment in SafeMoon would require the investor to consider the centralization of the Binance Smart Chain and how much control Binance has over it. It would also require a level of faith in the legitimacy of the SafeMoon team, which has little proof of previous success.
An investment in SafeMoon in its current stage would be pure speculation as it is not yet a proven team or project. That said, all ships tend to rise with the tide. Should Bitcoin continue on its trajectory in this bull market, there could be a chance SafeMoon will increase too, and other speculative investors could push it higher.