What is Safemoon And How Does It Work

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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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By: cryptotravelsmichael
0

Table of Contents

Welcome back to another podcast episode! In today’s discussion, we’ll go over what SafeMoon is and how it works. Keep reading for more information! 

What Is Safemoon? 

SafeMoon is a DeFi project with a fully diluted market capitalization of over $1 billion, with over 2.5 million investors and over $50 million in liquidity locked in.

SAFEMOON, a deflationary utility token, is part of this community-driven DeFi protocol. 

It is based on the Binance Smart Chain and runs on the BEP-20 token standard (BSC). The project began in the first half of 2021 and included elements such as static incentives, liquidity pool acquisition, and burn strategy.

SafeMoon provides a DeFi solution that makes the process easier. It grants yield farming or liquidity mining operations an unmatched level of security.

This is a community-driven platform that uses an automated liquidity generation and token burn procedure to generate a respectable APY for investors. Furthermore, the protocol’s smart contracts are validated by Certik, adding to the security that SafeMoon users can expect.

How Does SafeMoon Work? 

The SafeMoon system is based on the platform’s BEP-20 SafeMoon token, which uses a combination of auto-liquidity generation and reflection tokenomics to operate. The deflationary mechanism of the cryptocurrency has already consumed 400 trillion tokens.

A ten percent fee is charged for each SAFEMOON transaction, with five percent of the fee going to SAFEMOON holders and the remaining five percent shared in half. 

Half of the split % is sold into BNB (Binance Coin) via a smart contract, while the other half is instantly paired with BNB and placed to PancakeSwap’s liquidity pool.

Fans who stay on to the token are granted with fixed payouts, while those who trade their SAFEMOON tokens are penalized for selling them repeatedly. Overall, the price of the token is stabilized, and the project’s liquidity is funded.

Static Rewards 

The 5% tokens granted to SafeMoon holders are known as static rewards. Because the 5% fee is part of the 10% fee imposed on every transaction, the amount distributed is dependent on the volume of tokens transferred. 

This alleviates the negative sell pressure that early adopters frequently experience when selling their tokens.

Automatic Liquidity Pools 

SafeMoon has a self-sustaining liquidity pool that collects tokens from transactions in the form of fees and deposits them in SafeMoon’s PancakeSwap liquidity pool. 

This provides the token with a stable price floor. It also punishes selling activity, deterring whales from dumping the coin on exchanges.

Manual Burn 

This feature provides a token burn technique for SAFEMOON, in which the quantity of tokens is reduced in order to raise the price and demand of the tokens. 

Safemoon differs from other cryptocurrencies on what happens after the purchase. Safemoon charges investors at 10% fee when they sell their tokens, and this fee for selling tokens discourages people from selling. So the reward for this token is to keep it, to hold on to it.

- Crypto Travels Michael

Here's What We Discussed in Detail in This Interview

  • What is Safemoon
  • The Safemoon Model
  • Safemoon popularity
  • Safemoon Tokens

Killer Resources

HOW TO REACH TO CRYPTO TRAVELS MICHAEL

Final Thoughts

Safemoon is a cryptocurrency created to promote long-term investment and prevent selling, but it’s also a highly volatile asset with a variety of other hazards.

Safemoon’s price has been extraordinarily erratic since its launch, soaring more than 20,000 % before plummeting more than 80% recently. Instead of having an actual core objective, the name Safemoon appears to have been picked to capitalize on the current craze by portraying an asset that is both safe and going to the moon. Serious investors should be concerned about this.

The New to Crypto Podcast is designed to guide you through the crypto landscape with pinpoint accuracy. New episodes are added daily. Be sure to subscribe to the podcast and listen to all of the episodes to help you in your cryptocurrency journey.

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