If you happen to’ve scrolled previous the #SAFEMOONWALLET hashtag blaring on Twitter at the moment, it’s possible you’ll not have realized the token with a $2.5 billion market cap—generally derided as a Ponzi—has some precise product information.
Cryptocurrency undertaking SafeMoon at the moment opened sign-ups for a closed beta model of its pockets. It is welcoming 500 customers to check the product, which can purportedly maintain the SafeMoon token.
Because the creation of cryptocurrency, dozens of forks, wannabes, and even knockoffs have pumped for a couple of days solely to dump endlessly into the dustbin of CoinMarketCap’s servers. Until they fulfill some utility past financial transactions, individuals simply aren’t shopping for “shitcoins” for the lengthy haul.
SafeMoon, as in a “protected” approach for a token to go up in worth, has tried a really non-Bitcoiner approach of incentivizing individuals to carry their tokens, which at this level cannot be spent on something besides different cryptocurrencies.
Cowl your ears, Grover Norquist, however right here’s the best way it does it: a ten% tax on each transaction, whether or not that is shopping for or promoting. A portion of the tax additionally goes straight right into a liquidity pool. As a substitute of decreasing provide to get a worth hike, the thought is that this stabilizes SafeMoon’s worth ground. Half of the payment is break up among the many remaining holders, based mostly on the variety of tokens they personal. SafeMoon calls these rewards “reflections.”
In principle, then, each time a whale cashes out, it might create a short-term splash however no long-lasting ripples.
In follow, the worth of SafeMoon has been far and wide for the reason that March 2021 launch. It is at present down about 60% from its all-time excessive, in response to information from CoinGecko, however up 9,624% from its introductory low. Nonetheless, its ground remained at related ranges after coming down from a Could bump. With additional tokens of their palms, those that HODL’d in all probability aren’t panicking. And at the very least a few of those that purchased on the high are ready to obtain reflections that may take them again to zero—however they’ve to attend for others to transact first, which has led to many calling SafeMoon a Ponzi scheme.
The token’s redistribution mechanism has made issues difficult for exchanges, who’re tasked with serving to the taxed tokens get into prospects’ wallets. For the time being, most buying and selling happens on decentralized alternate PancakeSwap and on Cayman Islands-registered alternate BitMart.
Though BitMart listed SafeMoon in April, it didn’t have the tokenomics scheme absolutely built-in to permit for each day reflections. It as a substitute deliberate so as to add reflections to customers’ wallets on a month-to-month foundation. It accomplished the primary distribution on Could 12.
This explains a number of the attraction of a pockets solely for SafeMoon, which guarantees “intergrated [sic] tokenomics”. SafeMoon may additional incentivize individuals to retailer tokens in its official pockets by slashing taxes on sure transactions.
However identical to Ethereum Max, a questionable ERC20 token that additionally offers token holders a share of each transaction, SafeMoon is mild on particulars about its product. A Google type getting used as a signup sheet asks customers to determine what cellphone they’ve, so it is unclear whether or not the app is made for Androids, iPhones, or each. In line with SafeMoon’s announcement, “We need to check how the pockets runs on even low-powered units so in case you have a non-flagship cellphone, please do not let that dissuade you from making use of to be a beta tester.” Furthermore, beta testers should signal a non-disclosure settlement, which means extra particulars aren’t forthcoming.
Not like Ethereum Max, it does not have Kim Kardashian or Floyd Mayweather backing it. Nonetheless, it does have a vocal contingent on social media. And it might have its equal of Elon Musk, the Dogecoin cheerleader who was instrumental in bringing DOGE’s worth from below $0.01 all the best way as much as $0.73 (it is now value lower than half that).
Dave Portnoy, founding father of the web site Barstool Sports activities and holder of two.5 million Twitter followers (not fairly Elon Musk territory), purchased $40,000 in SafeMoon tokens and endorsed it in Could as his most well-liked shitcoin over DOGE, Shiba Inu, and others.
“Why? I do not know fucking why. It may very well be a Ponzi scheme. I just like the phrase moon as a result of that is the place I need to go,” he mentioned, earlier than including: “If it’s a Ponzi, get in on the bottom ground.”
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