Safemoon has skyrocketed up a staggering 1470% since it’s launch less than a month ago on March 8. This new project is hoping to level the playing field of decentralized finance applications by giving 'whales' or large investors less room to price speculate - as we've seen in many new defi projects - prices skyrocket in the beginning only to fall very sharply as the 'whales' take out their initial investment leaving smaller investors with almost worthless tokens.
Safemoon is focusing on the development of an automatic liquidity pool, allowing loyal and long term investors to be rewarded while keeping speculators at bay. In the proposed system, withdrawals will be charged a 10% penalty or tax of which 5% is then redistributed among existing safemoon token holders. The other 5% of this fee is automatically split into a BNB/ SAFEMOON liquidity pair. This mechanism reduces circulating supply by burning tokens automatically as well as increases the value of each holder's tokens on the network. Pretty neat huh?
On top of this, the development team is focused on being 100% community driven and developer tokens are all burned so that the original development team will need to participate in the presale just like the rest of us. This reduces the risk of a "rug pull", the situation where the development team sell off all their tokens and run.
As of writing Safemoon is currently trading at $0.00000155. If you're interested in getting some, Pancakeswap is probably the easiest way to get your hands on some. Simply go to https://pancakeswap.finance/ , click on trade then exchange your tokens. Adjust the maximum slippage rate to 11 or 12% in the settings (since this token is quite volatile and the default low slippage will return an error in the transaction) then press swap. Being built on the Binance Smart Chain and having relatively low gas fees in order to swap Safemoon tokens is probably another factor of why Safemoon's popularity has increased exponentially.
Currently it is only listed on Bibipom exchange and is working towards integration with WhiteBit. Later on this year we will hopefully see the completion of the SafeMoon App, Wallet, and Games. Their roadmap includes architecting the NFT Exchange as well as video-game integrations, expanding into the African Markets (doesn't it sound a like like Cardano anyone?) and looking to be listed on other larger exchanges like Binance. Right now, their website allows you to purchase merchandise, read their whitepaper, check out some statistics but not much more.
So what's next for Safemoon? After going through their roadmap it does seem like this project has a lot of potential, a good team behind it and achievable goals. One concern of mine though is that there's no actual working product (except merchandise and that doesn't really count for much) considering that according to coinmarketcap there's a circulating supply of 642,807,441,594,934 tokens (anyone wanna try to say that number?) and a fully diluted market capitalization of $907,255,668. That's quite a bit of 🤑🤑🤑 for a team that has yet to launch a working app.
There seems to be a lot of hype and speculation around Safemoon, and the low gas fees of Pancakeswap make it attractive to smaller investors looking for a few thousand percent gains (try buying a small cap gem on Uniswap and you'll be confronted with $50 fees for a single trade!). The project is still in the early stages and very exciting to see price skyrocketing upwards, but can the team deliver on their promise of a working platform and partnerships in the second quarter of this year? Only time will tell.
Disclaimer: Please note I own a very small amount of Safemoon tokens. This article represents my personal opinion and I am not affiliated with any financial institution nor am I a financial advisor. Investing in cryptocurrency is risky. Please DYOR (do your own research) before making an investment.