Is SafeMoon the New Dogecoin, or is it a Ponzi Scheme?
SafeMoon was released in March 2021, and within a couple of months, it was able to gain more than one million users already. This cryptocurrency is based on blockchain-based technology and is very similar to the already existing digital coins such as Bitcoin, Ethereum, Dogecoins, etc. But there are some discrepancies that differ this particular coin from the other already existing coins in the crypto market.
While creating SafeMoon, the creators of this coin had focused on some particular issues that the pre-existing digital currencies have to face every day. Price volatility is a significant issue for all cryptocurrencies. Even Bitcoin has to face the risk of market volatility. To fix this issue and cast down day-trading (which is also a major reason behind the price fluctuation in the market), SafeMoon has taken the initiative of rewarding the long-term holders and imposing a fee of 10% on each sale to prevent the holders from selling the SafeMoon token. The 5% of the charged fee will go to the existing holders of this digital token, and the rest will go to the liquidity pool that connects Binance and SafeMoon together. That means you will gain extra coins while holding onto it.
In the company white paper, the team behind SafeMoon stated that this step had been taken to prevent the larger coin holders (termed as whales) from selling their tokens when the value of the SafeMoon tokens have reached a certain limit. And according to them, the whales are one of the reasons behind the fluctuation that the crypto market goes through every day.
Additionally, to increase the value of the currency team, SafeMoon has opted for a manual burn policy in which the developers will manually burn the SafeMoon tokens to increase their value and scarcity. SafeMoon also thinks that by manually burning the tokens, the supply and price of the tokens will be under their control.
The Ups and Downs in SafeMoon’s price
The value of each SafeMoon token during the time of its launch was at $0.0000000010, and now the price of the coin has reached around $0.000001931 (according to CoinMarketCap). It has a long way to go to become a top-rated coin, but the rising popularity of this coin is not a matter of joke. The primary reason behind the actual popularity of this coin is the fact that it is relatively a lot cheaper than the other coins and has a new feature that has not been introduced in the world of cryptocurrency. Even the Dogecoin started at a very low price before reaching the actual value that it has right now.
An evaluation of the project SafeMoon
With all that popularity aside, it does have some potential risk involved which can actually turn this project into a scam. Truth to be told, team SafeMoon possesses the ownership of more than half of its liquidity, and they are also refusing to fix it. This is a major concern for investors because if they prevent the holders from trading or selling everything, all the investments will become lost, and it will turn into an exit scam.