A newcomer to the industry, SafeMoon (SFM) is a decentralised finance (DeFi) token created in March 2021 by John Karon. It’s built on the Binance Smart Chain (BSC).
Its protocol is community-driven and rests on four basic functions during each trade: reflection, liquidity provider acquisition, a burn mechanism and contribution to the ecosystem growth fund.
A key aspect is its automatic liquidity provider feature that acts as an arbitrage resistance mechanism, securing the volume of SFM as rewards for holders.
The project favours utilising smart contracts to automatically capture the liquidity used in decentralised exchanges, which is then held in custody independent from user possession, as opposed to a traditional farming reward structure.
SafeMoon also offers a wallet which includes multi-chain storage, fiat on-ramp integration, a contacts list and reflections tracker.
What is SFM?
SFM (previously known as SAFEMOON) is a BEP-20-compatible token launched on the Binance Smart Chain, a blockchain platform that utilises a proof-of-staked-authority (PoSA) model as its consensus mechanism.
What makes SafeMoon unique is the 10% fee for every transaction on its platform, with 5% of that fee split among existing SFM holders. This ‘reflection function’ and it could discourage investors from selling their SFM tokens.
SafeMoon’s goal is to prevent larger price dips caused by whales selling their tokens. A whale is a term used to describe individuals who hold a large number of coins of a particular cryptocurrency.
The other 5% of the transaction fee goes to liquidity pools on PancakeSwap, with 2.5% of the 5% converted into Binance Coin (BNB) to ensure the liquidity of SafeMoon tokens. The project claims that its automatic liquidity provider mechanism creates stability from the supplied liquidity provider by adding a tax to the overall liquidity of the token.
How does SFM work? Well, in its whitepaper, the project states that the conditions for the manual burning of SFM, as well as the amounts, can be tracked, which allows for transparency in identifying the current circulating supply at any given time.
SFM price analysis: Technical view
In December 2021, the project released an updated version of the SafeMoon contract, known as SafeMoon V2, and has since migrated to a new contract address on CoinMarketCap. The new-version SafeMoon cryptocurrency became known as SFM.
SFM started its journey on 16 December 2021, at $0.001658. After sideways price action, the bull run started in late December, when the coin surged from 0.001648 on 30 December 2021 to 0.00293 on the day later.
The coin reached its all-time high of $0.003285 on 4 January 2022, after which the price action moved sideways to lower, gradually losing momentum.
SafeMoon V2 coin bottomed out at $0.001581 on 22 January, wiping out over half of its value in just 18 days. Since then the price action has moved sideways.
It is currently (3 February) trading at around $0.00148, and ranks 3,010th in the list of cryptocurrencies by market capitalisation at $974m, according to CoinMarketCap.
Technical analysis provided by CoinCodex showed that short-term sentiment on SFM was bearish, as of 2 February, with 5 indicators displaying a bullish signal compared to 13 bearish signals.
A new total SFM supply and celebrity endorsements
In October 2021, it was announced that SafeMoon had reached 350,000 wallet app downloads. By November that same year, the number had risen to 600,000.
In October 2021, SafeMoon also announced a new wallet feature with the integration of a BNB buy button.
Another major plus for the SafeMoon crypto is the launch of SafeMoon V2 in December last year, which brought with it a 1000:1 consolidation update with a new total SFM supply of one trillion.
In terms of mainstream popularisation, SafeMoon has been endorsed by rapper Miles Parks McCollum, otherwise known as Lil Yachty, who has tweeted support for the coin and suggested that SafeMoon may be the new Dogecoin (DOGE). The founder of Barstool Sports, Dave Portnoy, has also publicly expressed support for SFM.
In other SafeMoon news, the project won the Crypto Community of the Year award at the AIBC Summit in Malta in November 202. Last month, SafeMoon surpassed the one million wallet downloads milestone.
“An overwhelming number of companies can’t dip their toes into the cryptocurrency markets due to lack of knowledge and experience,” Ryan Arriaga, global head of products at SafeMoon, told Capital.com.
“This is where SafeMoon and our partners bridge the gap. Our goal is to make our partner’s offerings available for purchase via crypto – not just fiat.”
A risk for the project lies in the fact that SafeMoon is a volatile asset. Additionally, an audit by blockchain security company CertiK detected six issues out of 77 security checks. It gave SafeMoon an average assessment score based on 15 safety and hazard evaluations.
SafeMoon crypto price prediction: Buy, sell or hold?
In terms of a SafeMoon coin prediction, algorithm-based forecasting service Wallet Investor gave a positive outlook. Based on historical data, Wallet Investor estimated the price rising to $0.00179 by March 2022, $0.00254 in January 2023, 0.00335 in January 2024 and $0.00429 by January 2025.
DigitalCoin Price supported a bullish forecast, expecting SafeMoon’s value to rise to $0.00220207364 in February 2022, $0.00244890106 in 2023, $0.00257019425 in January 2024, $0.00306351617 in January 2025 and $0.00616273838 in January 2028.
While the SafeMoon forecasts for 2030 or 2040 are not yet available, DigitalCoinPrice suggested it could be $0.00701001562 in December 2029.
Note that predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.
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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
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