Safemoon Crypto: To Meme or Not to Meme?
The coin had achieved a massive FOMO outbreak that drove its market valuation way through the roof, as high as $2 billion! This can be attributed to several causes. However, most prominent is the social value it has gained, with widespread backing by an audience similar to that of Dogecoin.
Think of Elon Musk fanboys and the gaming community, then add a newly exposed Chinese audience to that mix. What you get is a very powerful market force responsible for driving up the market value of Safemoon, by more than 8,000% in one month!
Being built on the Binance Smart Chain may have been the edge Safemoon needed to gain virality, especially for a Proof of Assignment (PoA) coin. PoA is a cryptographic consensus algorithm which used to confirm agreement on a decentralized and distributed network.
Naturally, this is considered a merit for the Safemoon coin and its market price. Here's why: when a transaction is carried out using Safemoon, the 5% fee is split into two, with one half going back into the funding pools and the other going into the Binance Smart Chain to liquidate the trading pairs between Safemoon and BNB.
What this means is that Safemoon has a solid liquidity pool, and if you compare the current market value of Safemoon coins and tokens distributed side by side with Bitcoin, you will see that the token burn rate is steady enough for token holders to see the value of their Safemoon coins rise, in the long term.
So what makes Safemoon different?
Since the coin launched in early 2021, the events that unfolded until the later months of that year ascribed its features to that of a meme coin, like Dogecoin. That was a significant threat (or opportunity) to the advancement and value of the Safemoon as a whole. This was greatly reflected in its price at that time. However, after they announced in a presentation to The Republic of Gambia that they wished to provide "technology for innovation and learning purposes", followed by an announcement of their venture into macro wallets, the internet of things, and the development of their own blockchain, it is pretty evident that the purpose of the Safemoon coin has evolved and may just be rocketing towards the moon.
Investing in the coin is a decision of personal choice, depending on whether or not you believe in the coin's purpose. However, there are risks to consider, as is always with crypto:
• Safemoon has a high volatility • While it has a sufficient liquidity pool, volatility can render that insufficient at specific points in time • It is still ranked 108th out of all crypto in the world and an anonymous team runs it.
Finally, if you wish to try your hands on leveraged trading or you wish to acquire and hold some Safemoon for yourself, you can do that from many platforms.
Author: Kalu Arunsi
Kalu Arunsi is a brand strategist who writes on Finance, Crypto, Tech and Marketing. His style involves breaking down complex topics into simple bite sized content, that way his readers enjoy reading as much as learning.