The safemoon crypto price has fallen through a descending channel since November when it dropped to $0.0007. It rose with the rest of the crypto market, reaching an all-time high of $0.007232, but has since been falling through a descending channel. The coin has not been listed on any major exchange and has been subject to APY of LP farming.
APY of LP farming plagues SafeMoon cryptocurrencies
SafeMoon is an early-stage crypto that offers a high APY, but it’s plagued by a major problem: LP farming. Many cryptocurrencies have fallen victim to this problem, where early buyers crowd out later buyers. This eventually leads to a valuation bubble, and the tokens are subject to a price collapse. The SafeMoon blockchain addresses this issue by offering stable rewards based on the volume of token traded, which encourages holders to hold on to their tokens. The higher the volume of tokens held, the higher the returns, and so on.
In the SafeMoon white paper, the company noted that a reflection mechanism has enhanced the incentive for token holders to hold onto their tokens. Moreover, the automatic liquidity pool provides a reserve price for the tokens, which enhances the stability of the SafeMoon protocol. While SafeMoon’s manual burn strategy is not the ideal option for investors, it is beneficial to SafeMoon token holders in the long run.
Although SafeMoon is a relatively new addition to the cryptocurrency market, it has rapidly grown in popularity, accumulating market capitalization of US$1.9 billion in less than two years. In comparison, Bitcoin has a market cap of US$1.1 trillion. The price of SafeMoon is driven by the cryptocurrency community’s interest in the project. The team is completely anonymous, and it is unclear who is behind the project. In addition, no third-party has reviewed the protocol code, so SafeMoon users should exercise extra caution when using it.
10% charge per trade discourages high-frequency trading
A cryptocurrency similar to Ethereum and Bitcoin, SafeMoon’s creators are attempting to address the issues with price volatility and speculators, and want to reward long-term holders. The cryptocurrency works by charging a small fee of ten percent per trade, half of which goes to existing owners, who are then awarded additional coins.
While this model may seem appealing, it is important to note that the price volatility of Safemoon has caused some to be wary of the investment product. Because of the 10% charge per trade, it may not be the best option for investors looking for a quick profit. Investors should remember that a volatile asset like Safemoon may result in a loss of all of their investment. It is therefore crucial to do independent research on a cryptocurrency before investing, and be aware of potential risks.
The 10% charge per trade on SafeMoon is a deterrent to high-frequency trading. Users will also have to pay fees to the crypto exchange if they sell SafeMoon. The developers say this will discourage day trading and smooth out the price volatility.
Token is not listed on major exchanges
Safemoon is a digital token, which is not listed on major exchanges. It uses a proprietary protocol, BNB chain, which was originally known as Binance Smart Chain, and is backed by a US-based private company. Its founder, John Karony, is a former DoD analyst who is also the CEO of SafeMoon US LLC. The project has recently released a new version of the token, which enhances security, accessibility, and quality. It also reduces the circulation of the token by a thousand tokens, without affecting user balances.
While Safemoon is a promising cryptocurrency, there are a few things you should know about it before buying. For starters, it is still unknown how many users it has. This makes it hard to compare its performance with other coins, and it is hard to trade SafeMoon against fiat currencies. The token does not have a technological advantage over other coins. Moreover, it does not have a significant transaction speed, which makes it difficult to use as a means of transferring money. It also has a centralized ownership, with the CEO owning more than half of the coin’s supply. Moreover, it is possible that the project is a racket and not a genuine business.
Although Safemoon is not listed on major exchanges, it has a great potential to rise in price. Its CFO, Jeremy Britton, believes that SafeMoon could become a global phenomenon, and its value could go to the moon. It’s worth remembering that Dogecoin went up 200 times in a few months in 2021, and this could happen with SafeMoon, too.
Utility is a major driver for individual crypto prices in 2023
As the general crypto economy continues to grow, utility is expected to continue driving individual crypto prices. While Bitcoin is expected to lead, other cryptos may follow in its footsteps. For instance, the integration of NFTs and the metaverse may raise the price of SafeMoon. If that happens, the cryptocurrency may be worth about $0.25 by 2023.
SafeMoon (2023) is forecasted to start trading at $0.0081 by the first quarter, spike to $0.0093 by the second quarter, and improve to $0.0090 by the end of the year. By 2028, the price of SafeMoon could be anywhere between $0.009 and $0.015, a jump of over fivefold.