The SafeMoon price surged 20% on the latest wallet release announcement and now has a market cap above $1 billion. But has the token already moved to something bigger and new? Let’s find out in today’s altcoin news.
Most other cryptocurrencies traded lower today and SafeMoon increased back into the 100 cryptos by market cap. Three months after announcing the beta version of its crypto wallet for developers and testing, the SafeMoon price surged and the wallet was released on the Google Play store. The price of the altcoin asset sprung in a 24-hour span but unfortunately for the tokens’ holders, it spent the last three months tumbling down. SafeMoon is a token on the Binance Smart Chain and unlike other altcoins, it’s not a governance token that gives you voting rights on a protocol and it is also not a utility token that adds to the protocol’s functionality. It’s more similar to the meme tokens like Shiba Inu that exist for the sheer fun of buying and selling it and making more from speculating.
Safemoon token price 24-hour Price Chart (Source: Coingecko)
SafeMoon does have a few interesting qualities. It taxes holders 10% every time they sell and serves as a disincentive for cashing out. Half of that 10% tax is proportionally split among the SafeMoon holders based on how much they own while the other half goes into the liquidity pool. The tokens are getting burned to bring deflationary pressure on the asset and the goal here is to create a safer way for the token to rise in value.
However, this hasn’t happened yet. Since hitting an ATH of $0.00001094 sputtered to a lower fraction and lost 84% of its value despite the announcement by Barstool Sports founder Dave Portnoy that this is his preferred shticoin. One reason for this could be that SafeMoon is not really easy to swap as it trades in low volumes compared to other coins in the top 100 by market cap and it is not available on other exchanges. For example, BitMart made the asset available in April but was not able to incorporate the token’s redistribution system and could update the users on their rewards every month. The wallet should bring a solution for that if done correctly as it can incorporate the tokenmoics in the right way. Holders will get their rewards as their share of the tokens from those that sold it on a daily basis into their wallet.
— SafeMoon (@safemoon) September 13, 2021
These tokens must prove themselves to be skeptical for the wider audience and some even warned that the company’s large stake is a manipulation risk but at least for today, every other token is in teh red. SafeMoon’s holders are quite happy to be buoyed by the positive news this month.