SafeMoon is releasing a wallet for beta testing, but details remain private.
If you’ve skimmed the hashtag #SAFEMOONWALLET that is exploding on Twitter today, you may have noticed that the token with a $2.5 billion market cap — sometimes called a Ponzi — has some exciting product news. taste.
The SafeMoon crypto project today opened registration for their closed beta wallet. The project welcomes 500 users to test the product, in order to purposefully hold SafeMoon tokens.
— SafeMoon (@safemoon) June 15, 2021
Since the advent of cryptocurrency, dozens of forks of Bitcoin, Ethereum, and even Dogecoin clones have skyrocketed in price in a few days only to fail forever. Unless they fulfill some utility beyond currency trading, people won’t buy “shitcoins” for long.
SafeMoon, which can be interpreted as a “safe” way for tokens to increase in value, tried a very non-Bitcoiner way to incentivize people to hold their tokens.
SafeMoon has a mechanism to tax 10% of all transactions, whether buying or selling. Part of the tax is transferred directly to the liquidity pool. Instead of reducing supply to increase prices, this stabilizes SafeMoon’s price floor. Half of the fee is divided among the remaining holders, based on the number of tokens they own. SafeMoon calls these rewards “getting back what you spent.”
In theory, every time a whale withdraws, it could create short-term tremors but no major lasting impact.
In fact, SafeMoon’s price has fluctuated greatly since its launch in March 2021. It is currently down about 60% from its all-time high according to data from CoinGecko, but is up 9,624% from its initial low. However, the floor level remained unchanged after the May drop. With additional tokens on hand, HODLers probably won’t panic. And at least some of those who bought at the top are also waiting to receive their reward to cover their losses, but they have to wait for others to trade first. This has led many to call SafeMoon a Ponzi scheme.
SafeMoon Price for the last 90 days | Source: Coinecko
The token redistribution mechanism has made things complicated for exchanges as they are responsible for putting tax-paying tokens into customers’ wallets. Currently, most of the trading takes place on the decentralized exchange PancakeSwap and the BitMart registered exchange in the Cayman Islands.
Although BitMart listed SafeMoon in April, it did not fully integrate a tokenomics (token economy) plan to allow for daily rewards. Instead, the exchange planned to add rewards to users’ wallets on a monthly basis. The platform completed its first distribution on May 12.
This partly explains the appeal of a wallet dedicated to SafeMoon. This wallet promises “tokenomics integration”. SafeMoon may incentivize people to hold tokens in official wallets by reducing taxes on certain transactions.
But like Ethereum Max, a dubious ERC20 token that also offers holders a share in every transaction, SafeMoon has not revealed details about its product. The form created on Google to sign up requires users to identify the phone they have, so it’s not clear if the app is made for Android, iPhone, or both. SafeMoon announced:
“We wanted to test how the wallet runs on low power devices, so if you have a low- or mid-range phone, please don’t let that stop you from signing up for the beta test.”
Furthermore, beta testers must sign a non-disclosure agreement, which means no more details will be leaked anytime soon.
On the other hand, this project is unlike Ethereum Max in that it does not have the backing of Kim Kardashian or Floyd Mayweather. However, it was praised by the vocal community on social media. And that could be as valuable as Dogecoin cheerleader Elon Musk, credited with bringing the price of DOGE from under $0.01 to $0.73 (now worth less than half of DOGE).
Dave Portnoy, founder of website Barstool Sports and has 2.5 million Twitter followers, bought $40,000 in SafeMoon tokens. In May, he confirmed it as his favorite shitcoin compared to DOGE, Shiba Inu, and others.
“The reason? I do not know. It could be a Ponzi scheme. I like the word the moon because that’s where I want to go. If it’s a Ponzi, buy from the start to get an advantage.”
According to Decrypt
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