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Cryptocurrencies are increasingly becoming popular by the day. This is because more people are becoming aware of the investment assets and are curious to understand how they work.
Numerous stories are told every day about the crypto industry. Both on the opportunities and the risk part. This interest has not only attracted investors but also developers.
We are experiencing new cryptocurrencies crop up every day riding on different technological concepts but with one aim, to have as many investors on their crypto as possible.
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SafeMoon was launched in March 2021 and has since attracted huge interest across the world. To begin with, SafeMoon is founded as a DeFI coin.
In less than a month after launch, SafeMoon experienced tremendous price growth of up to 12 times as shown in the chart below.
To understand the price movement of SafeMoon. We need to highlight the key fundamentals of the coin. This will help in understanding its past behavior and the future viability of the token.
What is a DeFI cryptocurrency? DeFI is a shortcode for decentralized finance. Cryptocurrencies are based on decentralization principle courtesy of the blockchain technology.
Members of a DeFI community can move funds at will without any regulatory influence across the world. Hence, SafeMoon is targeted to create a SafeMoon community where members can conduct financial activities with each other freely.
Other examples of DeFI coins include
- Uniswap (UNI)
- Chainlink (LINK)
- Dai (DAI)
At the launch stage, SafeMoon had capped a supply of 1quadrillion coins. Today, over 400 trillion have been burnt leaving the available supply of around 600 trillion tokens.
The burning of coins is helping limit supply hence boosting the price. There are approximately 2.3 million SafeMoon holders with a market cap of 1.7 billion dollars.
SafeMoon has a transaction fee of 10 % out of which 5% is distributed to the token holders. The reason for this is to ensure the holder’s value is impacted every time there is a transaction on the DeFI.
Where to buy SafeMoon
SafeMoon is available on various trading platforms. Since it is relatively new, the availability is not as widespread as other famous cryptos but I expect the network to keep expanding into the future. Below are some of the platforms you can buy and sell SafeMoon.
- Bitmat Exchange-https://www.bitmart.com/
- Gate.io platform-https://www.gate.io/
- Hot Bit platform-https://www.hotbit.io/
- Burency platform-https://www.burency.com/
- BitBins platform-https://bitbns.com/
The idea of creating decentralized finance is revolutionary. It helps build inclusivity in access to formal financial solutions. This concept has attracted huge positive reception and could shape the future of finance.
Elimination of middle players while making financial transactions makes the process more affordable and faster. If this happens successfully, there will be more value creation for the token investors.
SafeMoon is also relatively affordable compared to other coins. This is great as it makes it cheaper for the majority of people currently excluded to acquire. Recently, SafeMoon has been trading at the $0.000003 range making it among the cheapest cryptocurrencies to acquire.
There is an adequate supply of the SafeMoon tokens. The supply factor has been a key challenge in driving the acceptability of cryptocurrencies.
Limited supply locks our majority of interested users and also makes the crypto very expensive to acquire. As highlighted earlier, SafeMoon has a supply cap of 1 quadrillion meaning the token is readily available.
There is a major criticism of the viability of the coin. SafeMoon is regarded as a meme coin just like its peers Dogecoin and Shiba coin.
Traditionally, meme coins have no major uses other than speculation. Their market value is based on the investor’s sentiments. Once the confidence diminishes, the currency risks collapse.
There are fears its creators hold a lot of power on the coin. This gives the ability to manipulate the coins price making it lose the aspect of decentralization.
Though there has been communication regarding creators burning all their tokens, it remains yet to be confirmed. These issues have resulted in the coin being referred to as the Ponzi coin.
Such coins are only meant to benefit the early buyers who ride on the initial price growth then dump it once the reality kicks in.
SafeMoon is not the first coin to go through this kind of criticism. Ideally, all coins have their critics and it remains to be seen how the market reacts to them.
We have had a successful run of a meme coin before that is the Dogecoin. Today, Dogecoin is one of the most successful cryptocurrencies ranking in the top 5 positions.
Cryptocurrencies seem to defy the normal trading rules. There is a lot of market excitement in SafeMoon as shown in the initial price rally. The token is on a price pullback setting itself ready for a price jump.
This presents a great opportunity to buy. Just be aware that investing in cryptos is riskier currently compared to other investment assets.
Long term value
The price of SafeMoon in the long term will be based on various factors. The idea of burning coins and rewarding holders is key to a sustained price rise.
Coin burning will help balance demand and supply through which price is pegged. Developers need to do more value addition to convince investors the token is more than a meme token or a Ponzi scheme.
Finally, cryptocurrencies have been experiencing price crashes in the last few days. A trend that is almost similar across all crypto assets.
Based on this, there could be a potential price reaction on the upper side. Hence, it is good to take advantage of this opportunity targeting the previous high of the coin.
Cryptocurrency investment tends to reward those that are patient. You need to be in it for the long term. Always remember these kinds of investments are risky hence only put in the money that you are willing to lose.