Safemoon- Are We Going to the Moon?
Safemoon is a fairly new Defi project launched in March 2021. It is enjoying enormous response and popularity since its launch. It reached $0.00001094 on May 11, 2021, after hitting an all-time low of $0.00000004 on March 14, 2021. As of today, Safemoon is trading around $0.000004001. With staggering returns of more than 8000%, Safemoon has made many millionaires. Also, many people have been rekt because of this controversial cryptocurrency.
About the Project
Before investing in any cryptocurrency, investors do detailed research about the problem that the team is trying to solve. In the case of Safemoon, if we talk about the issue they are focused on solving, we cannot come up with a technologically amazing solution to a real-world problem. Still, a problem is a problem. According to their whitepaper (it is the shortest one I have ever seen, almost a page long), they are trying to solve how staking works. The early adopters or large holders of a token/coin stake them and generate huge rewards before ultimately selling them off and pushing the price downwards. This negatively affects an average retail investor who stakes his/her crypto.
The Safemoon Solution
Safemoon encourages its holders not to sell the tokens by taxing each transaction at 10%. Out of the 10, 5% is distributed as a reward to the token holders. Another reason for not selling the tokens. The remaining 5% is split up into 2 equal parts. The first half goes to a BNB wallet and the second half is added as liquidity on Pancakeswap.
Also, the dev team burned all their tokens before the launch. If we talk about urging the users to hold the tokens, Safemoon is working hard on it. Critics say that Safemoon is not solving a major problem like other projects and call it a scam or a Ponzi scheme. But we have to understand that in the early days, even Bitcoin was labeled as a project with no underlying asset.
About the Team
One more thing to highlight is that a scam coin website is least expected to have details of its team, unlike Safemoon.
John Karony (CEO)
Before Safemoon, John worked with the United States Department of Defense for 6 years. After that, he started TANO a gaming studio in November 2020, whose site is under maintenance at the time of writing the article. Currently, he serves as the CEO of both TANO and Safemoon.
Thomas Smith (CTO)
Thomas serves as the CTO at Safemoon and is also the co-founder of TANO. He has worked in technical roles with Goldsmith Blockchain Consulting, Geometric Gaming Corporation, etc.
Other members include Hank Wyatt as VP of Research and Development, Jack Haines as the COO, and many more.
Commendable Job at Marketing the Project
Whether the project will go to the moon or not. One thing that is for sure is Safemoon has an exceptional marketing team. Safemoon gained immense popularity within a short time. This was not a coincidence. They did some magical marketing to develop a community with shared values of going to the moon.
Safe + Moon- They choose a name that itself includes a sense of safety and dreams of the moon. “To the moon” is a very popular phrase used in the crypto world.
No one knows what's going on within the minds of the founders. We can only speculate with the information we have. In my opinion, Safemoon is solving a problem which anyone could have solved but they are the first ones to do so. Their project is more inclined towards marketing rather than towards technicalities. They won’t be using a lot of technology because they are not solving a technical problem. Yes, there is no underlying asset to Safemoon but, even Bitcoin has no underlying asset. Also, going through the Linkedin profiles of the core team, they were unable to gain our confidence. There is nothing wrong with them but something doesn’t feel right.
It all comes down to what sentiments do the public attaches to this crypto. If it can enjoy some positive attachment then the project can go to the moon but if public sentiments go negative, it is very capable of crashing down. How would we trade this Crypto? If we have a portfolio of 1000$, we would buy 10$ worth of Safemoon, in case they go to the moon (1$ for us), our 10$ would turn into a whopping $2499365.
Note- Cryptocase is not a financial advisor and the above is not financial advice. The information is solely for educational & informational purposes only. Cryptocase is and shall not be responsible for any profit or loss incurred by you