Safemoon is a digital currency token created on the Binance Smart-chain blockchain in March 2021. Safemoon is a memecoin that has paved a path for the rapid invention of shitcoins because of its protocols. Safemoon has attracted many investors despite having its price at a fraction of a cent. However, the crypto community is in a dilemma concerning the future of Safemoon since it is hard to rule out whether it will continue with its impetus or if it will eventually burst the bubble. The price of Safemoon valuations results from market frenzy; the currency’s rising is seen as a speculative bubble.
What is Safemoon?
Safemoon is a protocol-guided community with decentralised finance (DeFi) tokens on the Binance Blockchain. Also, it is referred to as the BEP-20 token. Safemoon stands out among other memecoins because of its simple functions during a trade. These functions are:
1. Reflection: 5% is reflected to all holders for passive income.
2. LP Acquisition: 5% is added to a Liquidity Pool.
3. Burn: A burn wallet receives a portion of reflection that is never seen again.
Therefore, in every Safemoon transaction, 10% is reflected back to all holders, and the other 5% is burned to limit the token supply. Additionally, Safemoon has proved to be very rewarding for investors since it rewards their farms automatically without stake a token with its auto-liquidity generating protocol.
However, it comes with a high cost since all transactions, including selling, require 10% to the owner. Thus, this makes it most beneficial for the early adaptors. The new investors will not receive any amount near the early adaptors returns hence the reason why it was speculated to be a pyramid scheme.
Safemoon market capitalization
After its launch, Safemoon rapidly gained over one million cryptocurrency holders, and it multiplied in value after a wave of celebrity endorsements. During this period of celebrity advocacy, May 2021, Safemoon rallied to all-time highs of $0.000009, which ranked the market cap double its current value. However, this price valuation in the market cap was a big deal considering the low price per token of the currency.
Currently, Safemoon is trading at around $0.000004 per token with a market cap of about $2.5 billion. If the price could jump three zeros to $0.004, the market cap would be roughly $2.6trillion, which would surpass the Bitcoin market cap considerably.
Can Safemoon reach $O.O1?
Practically, it is unrealistic and unreasonable to rule out that Safemoon can get to $0.01. However, it is possible to reach a $0.01 valuation over the decades. Reaching $0.001 can be based on the condition that Safemoon burns enough tokens and ensures that the volume and transactions continue at an invariable rate.
It is nearly impossible for the market cap to grow to the extent of being able to support the price. Memecoins like Safemoon are created to attract investors by offering overhyped hopes and unrealistic promises to sound more alluring.
There is still a massive room for rising for Safemoon, although reaching $0.01 is entirely out of the bracket. Still, it is hard to imagine Safemoon growing to that scale, considering investors get punished for using it.
How to buy Safemoon
Safemoon is an altcoin, and thus, there are many options when it comes to purchasing it. Also, you can trade it by using a decentralised exchange which is an excellent alternative for users dedicated to avoiding fiat, or wishing to exchange a different altcoin. Use decentralised exchange like PancakeSwap to swap another crypto for Safemoon.
You will require cryptocurrency in a crypto wallet connected to Binance Smart Chain to use PancakeSwap. Therefore, great places to onboard cash to crypto are Binance, eToro, Voyager and Coinbase.
Is Safemoon a bubble?
Because there is not necessarily any reason that price is moving, but mere speculation makes a Safemoon a Bubble just like many other memecoins. The price of Safemoon rally and rise exponentially with no sustainability and eventually take a dramatic price decline.
Safemoon has vast community following and over one million follows on Twitter. However, most of the community is accused of holding Safemoon without actively trading because of its 10% fee, thus leading to liquidity issues that can eventually burst the bubble.
What are memecoins?
Memecoin is a crypto that derives from cultural references and social media. Memecoins do not have revolutionary protocols; thus, they rely on jokes, social media and cultural connections to captivate and attract investors. They are mainly created to gain popularity fast without necessarily having utility.
If you contemplate investing in memecoins, do not put more than you are willing to lose. It would be best to consider that memecoins are risky and volatile assets.
Is Safemoon a good investment?
Safemoon may be an excellent option if you are looking to diversify your portfolio and are ready to take a risk. However, if your objective is to invest in a revolutionary blockchain project that will shape the future of decentralised finance, then Safemoon is not for you. Remember that memecoins are the most volatile resources to invest in; thus, they are highly risky. Therefore, do not invest more than you are willing to lose.
Safemoon is a protocol-driven community fair that launched decentralised finance tokens. Threes functions during every trade include reflection, LP acquisition and burn. It is close to impossible for the market cap to rise to the extent of supporting the price. Thus it is hard for Safemoon to reach $0.01. However, it can reach a $0.01 valuation over the decades if Safemoon burns enough tokens and ensures that the volume and transactions continue at a consistent rate. Safemoon can be an excellent alternative for investment if you are willing to take a risk and expand your range. Additionally, Safemoon uses social media and cultural references to attract investors.
