Cryptocurrency: What is Safemoon?

Here if we talk about Safemoon, it is in the form of a cryptocurrency. When it was launched in the year 2021, its price caught everyone’s attention at that time. And even after the peak of April 2021 when its value fell by almost 99 percent, it essentially lost all its value completely.  If we take a closer look at it, it was designed to reward holders who were in it for a longer time. It charged sellers about 10%, with a portion of the fee being returned to existing holders. Visit this link for more information regarding this article.

How is Safemoon able to work?

As we mentioned earlier, Safemoon is a cryptocurrency, which is in the form of digital currency. You can get it very easily online and also you can utilise it through the exchange. Just as ETH (Ethereum) and BTC (Bitcoin) are the more popular cryptocurrencies, Safemoon is also operated by distributed ledger technology called a blockchain. SafeMoon was built on the Binance Smart Chain blockchain.

Here, if we talk about the design of Safemoon, it was designed for those investors. The idea is to encourage investment and discourage selling for the long term. It does this by charging more than approximately 9 percent of the fee each seller is charged, and half of that fee is paid to existing Safemoon holders. And the other half is used in the liquidity pool, to improve the stability of the price.

When Safemoon was audited by blockchain security firm CertiK, it was discovered that tokens created by its owner were received from a liquidity pool and that they were paid as part of a fee on the tokens created Complete control is achieved. certik has highlighted this as a major issue in their report and also that Safemoon should improve its protection features. To improve the price of Safemoon and reduce supply, developers are constantly attempting to manually reduce the quantity of Safemoon in circulation.

Hazard to consider 

Just as cryptocurrency is a speculative asset, Safemoon is also a highly speculative asset with no intrinsic value. When you consider buying Safemoon, you may also face the possibility of losing investment, for which you have to be prepared in advance. Below are a few other hazards to note.

• Fluctuation: Since it was presented, the cost of Safemoon has been very fluctuating, rising more than 20,000% before tumbling almost close to 99%. Since most cryptocurrencies are also ones that have no hidden value, the return is also dependent on whether you can sell it to someone else.
• Regulation: Cryptocurrency forms of money are genuinely new, and governments run administrations are simply starting to comprehend what they are and the effect they can have. China was strong in its reaction, prohibiting cryptocurrency forms of money in 2021 as a result of the monetary dangers presented by them and the speculative trading they make. Look at Bankrate’s Cryptocurrency Tax Guide to find out about essential expense rules for BTC and ETH.

• Liquidity: For merchants hoping to get in or out of SafeMoon rapidly, the way that the cash’s founder demoralised selling through a 10 percent charge could make liquidity a challenge. Furthermore, Safemoon doesn’t trade on the major crypto trade, yet rather is traded on Pancake Swap, which permits trading numerous Cryptocurrencies forms of money.

Final thought

SafeMoon is a digital currency that was intended to support long-haul ventures and beat selling down, yet an incredibly unstable resource accompanies various dangers as well. The people who purchase this sort of unsafe assets ought to be ready to lose their whole venture.