As Dogecoin’s market capitalisation blows past Ford Motors, a new
cryptocurrency DeFi token known as SafeMoon has been – as the kids say – rocketing to the moon. Over the course of three weeks, it’s experienced mammoth-sized growth in the way of 2,900%, and in the last 24 hours alone, the value of SafeMoon has added an additional 140%. Here’s what you need to know.
What is a DeFi token?
The “DeFi” in DeFi token is short for “decentralised finance” – an umbrella term for financial products available to access on a public decentralised blockchain network, essentially allowing anyone to access it without the usual middlemen like banks, brokerages, and exchanges.
As explained by Coindesk, removing the intermediaries from the equation is important as centralised systems and human gatekeepers “can limit the speed and sophistication of transactions” while simultaneously offering users less direct control over their money.
It’s worth noting blockchain transactions are irreversible, which means that incorrect transactions with a DeFi platform or deployment of smart-contract code containing errors cannot always be easily corrected.
(You can read a more detailed breakdown written by far more capable minds here.)
Why has SafeMoon been on a tear recently?
Similar to Bitcoin, Dogecoin, and even Gamestop, SafeMoon has been launched into the stratosphere by a community-backed groundswell garnering huge followings on Twitter and Reddit and amassing over 600,000 holders since launch in March. The community has helped spread the word (bolster FOMO) via billboards, campaigns, leadership, and via personal contributions to fund and develop a SafeMoon exchange.
The overarching belief – aside from apes together strong – is that this will cement itself as the future of finance (beyond “investing” alone).
Currently, SafeMoon is only listed on BitMart and WhiteBit; reportedly due to hit two more crypto exchange platforms in the coming weeks – with announcements of said news arriving tomorrow – sure to bolster confidence yet again. Which platforms, however, is anyone’s guess.
SafeMoon has been the most search token on CoinMarketCap – beating out Dogecoin – for the third consecutive day.
RELATED: How To Buy US Shares In Australia
HODL = Gains
SafeMoon rewards investors who hold their tokens and penalises those who opt to sell quickly. The latter is charged a seller’s fee of 10%; 5% of this seller’s fee is then redistributed among those who still have skin in the game.
Many have raised concerns that this entire dynamic bears remarkable similarities to a
Ponzi scheme multi-level marketing tactic, which requires more buyers to keep buying in order for the price to keep driving the price skyward. As long as the wheels keep spinning, however, there’s still money to be made.
“Users holding on our platform will receive static reflection through all transactions,” explains Johnny Karony, SafeMoon CEO.
“Meaning when you hold your BTC, or Bitcoin, you will receive more Bitcoin.”
SafeMoon market cap
At the time of this article’s publishing, the SafeMoon market cap is sitting at around US$2.97 billion (AU$3.8 billion).
How to buy SafeMoon
As outlined on the official SafeMoon website:
- Download the Trust Wallet app.
- Purchase BNB or BSC.
- Go to the DApps tab at the bottom and find PancakeSwap – iPhone users may need to enable the trust browser then use the browser tab. You can also click the “Buy Now” button on the SafeMoon website for those not on mobile.
- Click “Select a currency” and enter this contract address into the search field: 0x8076c74c5e3f5852037f31ff0093eeb8c8add8d3
- Before swapping, click on the cog wheel and set the slippage to between 11-12%.
- Now, set the amount you want to purchase and press the swap button.
- Confirm the transaction.