The crypto-market is unregulated and one consequence of that meme coins have become entrenched within the cryptocurrency stratosphere. One of the meme coins that has gained some momentum Safemoon (SFM) coin. Built on the Binance Smart Chain, SafeMoon Protocol aims to solve the issues that plague cryptocurrencies of old. These are mining rewards, farming rewards (yield farming), and liquidity provisioning.
The equipment that is used in mining takes a serious toll on the environment. Safemoon proposes a model in which the users would be allowed to participate in a smart contract token reflection to produce tokens inside their own wallets.
Similarly, there is the problem of the maintenance of liquidity in decentralized exchanges. The onus to provide the investors with liquidity falls upon the developers. Conventionally, the developers incentivize users through mechanisms to not liquidate their holdings in case things go haywire. Of course, this is a big IF. Safemoon tries to combat this by employing such a smart contract function that automatically captures liquidity that is to be used on decentralized exchanges and held in custody independent from user possession.
Furthermore, A smart contract that allows tokens to be burned can promote scarcity by reducing total supply. When combined, these tokenomics may provide far superior benefits for the community within the decentralized venue, allowing these functions to be amplified and dependent on volume provides an ideal incentive to expedite adoption and foster new use cases. In layman’s terms, SafeMoon has a unique feature where the portion of the fees charged to sell the tokens is distributed to the Safemoon owners.
Currently, Kucoin launched SafeMoon on their exchange. KuCoin isn’t a typical currency. It is a centralized exchange. The cheap trading fees and the fiat currency exchange in Kucoin are things that are in line with the SafeMoon project. Until they launch their own exchange, SafeMoon is going to utilize the KuCoin exchange.
Price Movement – SafeMoon
At the time when this article is being put down into words, the current value of the token is $0.001701 with a trading volume of $196,317 and a market cap $996,129,427. SafeMoon has released its v2 in December. This was done so that the massive total supply of Safemoon shrinks. The planned migration on v2 seems to be 1000:1. Safemoon has also been audited by CertIK. It attained a security score of 88 with the major error of centralization and one medium error which was a logical issue. But nevertheless, it seems that SafeMoon has big plans for the future.
