What is Safemoon, and How does it work?
Cryptocurrencies are not an alien terminology now. Ever since the world got to know about Bitcoin, there has been the addition of new cryptocurrencies in the market. Around 4000 cryptocurrencies are presently floating in the market, and some of them have been able to maintain steady growth. Well, the latest addition that we are going to talk about is Safemoon. This newly launched cryptocurrency garnered attention because of the steady price rise. In this blog, we are going to talk about Safemoon and its future.
What is Safemoon?
This cryptocurrency was launched on 8th March 2021. It is a BEP2 token that runs on Binance Smart Chain. The reason Safemoon garnered so much attention is because of the sudden price hike after its launch. Unlike the other cryptocurrencies that favour lesser transaction fees, Safemoon taxes the seller. So, if you got to trade this cryptocurrency, you should be ready to pay some taxes. The working of Safemoon is simple, the longer you hold the currency, the better will be the rewards. This cryptocurrency now has 2.5 million users while burning 40% of the token supply. The objective of creating this cryptocurrency is to address the issue of impermanent loss.
Safemoon Tokenomics- there were around one quadrillion Safemoon tokens, out of which 223 million have been burned by the developers. Many people question the longevity and safety of Safemoon. The volatility of the cryptocurrency market is not new, but gong with the current trends where we are witnessing a rise in the pricing of cryptocurrency, we can expect the market to perform better, and if you are willing to make a quick gain, then you can try Safemoon.
Many people are calling it out as a Ponzi scheme; as far as the current trend goes, the early adopters are the maximum gainers in this, so you can consider buying it. But make sure that you assess the market.
Working of Safemoon
Safemoon doesn’t promote day trading of their coins; this is done to fix the price volatility issue. The long-term holders of the token will get the best reward. People who will be selling the Safemoon token will have to pay 10% penalty tax for transactions, and 5% of this tax will be distributed to the present token holders.
The addition of tax has been done to keep a check on the limit of selling the tokens rather than holding them. With this, it will be easier to keep control of the sudden decline of ricing, which usually occurs when people start selling tokens. It can also cause the fluctuation of the price, which can impact the sale of the cryptocurrency. To avoid this, a taxation amount has been levied on this.
This is a simple and easy way of promoting the cryptocurrency and benefiting the users. But the fact of the matter is that one needs to keep a check on the cryptocurrency price fluctuations and the market. If you, too, are willing to get updates on Blockchain, and cryptocurrency trading, connect with the Blockchain Council today.