To the Moon!
Authored by: @hetty-rowan
It took a while before the post came online again. I hope you weren't all waiting, it had its reasons that made it take longer. It is not easy to go to the moon! And especially not to do that safely!
It took me some effort
It sometimes takes some effort to read through the white paper, and that is something I really want to do BEFORE I rush into a coin. Even with a coin like the Safemoon, which has been in the news a lot in recent weeks. Because even though I have often seen the name Safemoon in recent weeks, and many people have written positively about it. I still like to do my own research. And to do good research, you sometimes need a little more time, as it turned out to be the case today.
Not so handy today!
I was not functioning properly, neither was my vacuum cleaner, and together we caused a short circuit… Not so handy! Anyway, after a long journey with several detours, yes astronauts can also make a detour. Or did you think all those space shuttles go straight to the moon? Not at all!
And now that I've landed here again, let's take a closer look today at what SAFEMOON is.
What is Safemoon
You have seen Safemoon popping up everywhere in recent weeks. If you are a bit familiar with the social media when it comes to crypto, you must have noticed this name. Yet this cryptocurrency is still relatively unknown. This has to do with the fact that he is still new, but perhaps also because there is a bit of a specific group the target audience. And not everyone feels addressed by that. The creator of Safemoon describes it as a community coin that was created by investors, for investors.
The main goal is to implement static rewards in their project. This would launch the price to stratospheric all-tin highs, to the moon, safely. For the time being it looks like it is a project with the aim of involving and rewarding as many investors as possible in their project.
One month young!
The developers have already held an AMA, which stands for Ask Me Anything. This gave all attendees the opportunity to ask questions about the project. SafeMoon was launched in March 2021 and will reward people who buy and hold the crypto coin.
If you have been looking around the cryptocurrency world for a while, then you know that the best way to get to know a new project is to look at the white paper and the roadmap. Two very important things to watch out for when you start looking at a new crypto. Because from a whitepaper and roadmap you can often already deduce whether this is a long-term or short-term project. Let's face it, many scams don't even have a whitepaper or roadmap!
Whitepaper and Roadmap? Check ✔
In the case of Safemoon, you don't have to worry that there is no Whitepaper. There is a Whitepaper indeed. There is also a roadmap. Two important things if you are going to research a crypto for yourself. What immediately stands out in the Whitepaper is WhitePaper that Safemoon is made on the Binance Smart Chain. YES! No sky-high gas fees! A second point that immediately struck me was that they immediately make a statement about the discontinuation of Safemoon, and the high APYs that can be expected. That is and remains an interesting fact, and yes, of course, a high APY attracts more people than an average or low APY even. But what is especially attractive about Safemoon is that they want to make their rewards STATIC. And that is very unlike the many defi projects that you now see everywhere.
Unlike other defi projects
In most defi projects, the APY is very high when the project has just been launched. The early adopter gets the most from this. But what you get when you invest in a project based solely on APYs is a project WITHOUT a stable course. You are more likely to grow an inevitable bubble with this, and it may burst sooner or later. Safemoon wants to remove this effect by building in STATIC rewards. And that is the point of which they say "SAFEMOON". By trying to build in a stable static reward with a high APY, they want to be safe with their project to the moon and beyond.
Why Statistical Rewards?
With new crypto projects we see more often that whales invest in projects and as a result influence the price upwards enormously. This is a positive trend, but not if the whales decide to withdraw with all profits shortly afterwards, which in turn has an effect on the current price. Many smaller projects are very sensitive to the influence of larger players in the market. SafeMoon wants to remove this pain point by working with static rewards and so-called penalties for selling your coins.
They are convinced that statistically rewarding has many problems going on and can solve. The amount you get from an investment is of course always dependent on the volume of your investment, if you decide to invest a larger amount, you will get a larger return on it. investment. In practice, we see that the so-called early adatoprs immediately start selling their coins again after they have received this reward. This has a negative effect on the price. A static reward gives them more control over this. On the other hand, they naturally want as many people as possible to hold their cryptocurrencies in the long term, hodling your investment.
This is a very interesting fact in the SafeMoon project. The project is 100% owned by the investors. What do they mean by this? We often see developers and CEOs of a project holding many crypto coins themselves throughout the process. For example, it is said that Satoshi Nakamoto, founder of Bitcoin (BTC) himself still owns 1 million Bitcoins. With SafeMoon, on the other hand, the developers burned all team coins and they, like others, had to participate in the presale. As a result, none of the original development team has a chance to influence the project and this is a democratic fact that is driven by the community.
The project has started with an impressive total supply of 1,000,000,000,000,000 tokens. This is obviously a lot, but what SafeMoon is doing here is manually burning tokens every so often. They do this for a conscious reason. They want investors to keep their SafeMoon running for as long as possible and also reward them for this by burning coins on a regular basis.
SafeMoon strives to implement a strategy that will reward investors in the long run. The burning of these coins will be done in a transparent manner that you will be able to monitor and view via their official website.
Have you bought SafeMoon and still decided to leave the project? Each transaction comes with a cost of 10% that is evenly divided. As much as 5% of all these costs are redistributed to all investors. This means that you will be rewarded extra for holding your SafeMoon crypto. The remaining 5% is linked to BNB coins to provide the liquidity of PancakeSwap.
Automatic liquidity pools
Offering automatic liquidity as discussed above should become SafeMoon's secret. The penalty, as they call it, to get out is a big breakthrough here. Currently there is a very high liquidity, but it is also becoming scarcer as they start to burn more coins. To guarantee their liquidity, they work with the 10% fee for investors who exit. The aim is to avoid deeper lows when "whales" decide to sell their tokens at a later stage, so that the price will fluctuate less strongly due to the automatic liquidity provision.
Like every project, SafeMoon also has a roadmap in which they will write out their developments for the coming period. The first quarter of 2021 is all about the concept and launch of the SafeMoon token. This is a great success in a very short time and we can also see this reflected in the percentage increase in the price. How this will develop further will depend on further developments, but the project has in any case made a very good start.
In the last quarter of 2021, they also want to take advantage of the trends that currently dominate the market, namely non-fungible tokens (NFTs). They want to develop a kind of NFT Marketplace in which everyone can buy and trade his or her unique token. As if this wasn't enough, you could also stake your own NFT with them. They are busy working out this concept, and we hope to get more information about it soon.
Smaller projects are usually not yet available for sale on larger exchanges. The disadvantage of this is that the public is rather limited by investors who already have experience with smaller and often decentralized exchanges. What is part of their roadmap is that they want to offer SafeMoon on different exchanges.
Binance Smart Chain
Currently it is only possible to buy SafeMoon via PancakeSwap with the Binance Coin (BNB). Investors located on larger platforms such as Binance do not yet have access to SafeMoon on Binance itself. New investors may be unfamiliar with a decentralized exchange such as PancakeSwap and that is why SafeMoon also wants to focus on listing their token on several larger exchanges.
To me it sounds like an interesting project and the fact that they are on the smart chain is a very big advantage to me. The Whitepaper looks interesting, and so does the Roadmap. For sure that I'm going to keep an eye on this project to see how it unfolds.
Thanks for reading through and have a nice evening!
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