What is Safemoon And How Does It Work

Michael  0:00  

Welcome to the New to Crypto Podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host Crypto Travels Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New to crypto podcast brings you new episodes daily Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto and don’t know where to start? Are you more experienced but have questions? Then you’re in the right place. This podcast is designed for you coming at you from the Trading Center and the Lifestyle Dezign Studio. Here’s your host Crypto Travels Michael.

Hey, welcome to today’s podcast. I’ll tell you this podcast is growing. It’s now been heard and downloaded in 131 countries around the world. So I truly think you the listener, and our community is growing and I’m excited about the future. So let’s jump into today’s episode. It’s all about Safemoon. What is Safemoon? Safemoon is a decentralized finance token. And this means that is part of an alternative financial system that allows trading on blockchain. without the intervention of centralized systems (DeFi that is) The difference between this cryptocurrency and other cryptos, is that Safemoon’s creators encourage their investors to keep their token and not sell them. Safemoon was among the first cryptocurrencies on the Binance smart chain to gain widespread attention. Most of this attention came via social platforms, especially on Twitter and TikTok. There was also one of the first cryptocurrencies to implement redistribution tokenomics Something that has yet to prove itself as a viable framework of cryptocurrencies Safemoon charges investors at 10% fee when they sell their tokens, and this fee for selling tokens discourages people from selling because there’s a tax if you will, a larger fee to exit. 

So the reward for this token is to keep it to keep possession of it to hold on to it. According to Safemoon’s developers the goal with this strategy is to avoid large drops when large investors decide to sell their tokens, basically avoiding large fluctuations in the price. Safemoon was released in March of 2021. And the slogan of Safemoon is safely to the moon, and it took inspiration from the popular phrase in crypto to the moon, meaning to quickly rise in the price to significantly rise. The CEO of Safemoon is John Caroni, a former analyst of the United States Department of Defense. After its launch Safemoon quickly gained over 1 million holders for the token. Safemoon multiplied rapidly in value after a wave of celebrity endorsements including the rapper little Yachty, the YouTuber Logan Paul, and sports blogger Dave Portnoy. Safemoon has announced plans to launch its own cryptocurrency exchange, and in May of 2021, Safemoon announced making a presentation to Gambia to provide technology for innovation and learning purposes. In June of 2021, the project invited applications for better testing on the Safemoon wallet, and Safemoon wallet app was released on Google Play in September of 2021, and the App Store in October of 2021. So let’s go over some of the features. 

Safemoon differs from other cryptocurrencies on what happens after the purchase. Each transaction causes the network to do a reflect a liquidity fund acquisition and a burn. Reflection in crypto means static rewards in attempt to eliminate the bursting liquidity bubble that comes with every new DeFi token today, and the acquisition of the liquidity pool. As for the 5% that is allocated to liquidity The goal is to create price stability, and Safemoon distributes liquidity across all exchanges that support the asset. In this case, half of the 5% fee is allocated to the Safemoon, Binance, BNB coin trading pair in hopes of creating floor price. Let’s break down the burning portion that I mentioned. Finally, there’s the token burning and the remaining 5% is covered to BNB essentially removing Safemoon from circulation. This increases the rarity of the asset and as a result increases its price. Remember, these three steps occur with every transaction. The team wants to token to act as a store of value. So where can Safemoon be purchased? Safemoon can be bought on several crypto exchanges according to coin market cap. 

The main exchanges to buy Safemoon is Bitforex, Bluehelix exchange and Gate.io among others such as WhiteBIT and BitMart. Although Safemoon is based on the Binance smart chain is not available on Binance. The project’s website states that is seeking a Binance listing and from the time of this recording, it is not yet on the Binance exchange. Little is known about the creators of Safemoon except that the team is composed of six people. I hope this has given you an overview of what Safemoon is definitely like and subscribe to the podcast we have more series is coming up we have more how to guides on the website, more resources. I’m launching a coaching program and consulting to help people just grow and people that are new to crypto, learn how to do the basics where I’ll get on Zoom and go over with them any questions that they may ask or have. So chime in here tomorrow for a very special episode. Until then, make it a great day.

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