SafeMoon released a new wallet for beta testing but there weren’t many details about it in the media. However, people starting talking about it, a lot and why is that, we try to understand today in our cryptocurrency news today.
SafeMoon is a cryptocurrency with a $2.5 billion market cap. It taxes each transaction and redistributes tokens to the holders. If you have scrolled past the #SAFEMOONWALLET hashtag on Twitter, you might not have realized the token has a market cap of $2.5 billion and it had some actual products to go by, despite some claiming it was a Ponzi scheme. Crypto project SafeMoon opened sign-ups for a closed beta version of the wallet and it is welcoming 500 users to test the product which will hold the SafeMoon token. Since the crypto became known to the public, plenty of users and supporters pumped for a few days to dump forever into the trash later and unless they fulfill some utility beyond the monetary transactions, people are not buying these kinds of coins for the long haul.
SafeMoon is a safe way for the tokens to go up in price and it incentivizes people to hold their tokens which right now cannot be spent on anything except other cryptocurrencies. A 10% tax on every transaction whether that is buying or selling means that a portion of the tax goes into a liquidity pool instead of reducing the supply to get a price increase with the idea being that this stabilizes the price floor of the coin. Half of the fee is split among the holders based on the number of tokens that they own.
In Theory, every time a whale cashes out, it could create a short-term splash but no long-lasting effects. The price of SafeMoon was all over the place since the launch and it is now down by 60% from its ATH as per the data from CoinGecko. The SafeMoon wallet could boost the price now but it still doesn’t have the tokenomics scheme fully integrated to allow for daily reflections. However, a questionable ERC20 token that gives token holders a share of each transaction, this one doesn’t have a lot of details on its product. The google form being used as a signup sheet asks users to identify what phone they have so it is not clear yet whether the app is made for iPhones or Android.
Dave Portnoy who is the founder of Barstool Sports bought about $40,000 in SafeMoon tokens and endorsed it back in May as his preferred shitcoin over DOGE.
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