The crypto minnow, which presently carries a price of lower than a thousandth of a greenback, has surged in worth in latest days, is attracting contemporary investor curiosity amid a stumble within the wider crypto bull market
Whereas the crypto sector has discovered itself totally on the again foot in latest days, one shiny spot on the smaller finish of the market is Safemoon, a brand new crypto launched within the first quarter of 2021 that has been gaining traction.
Whereas nonetheless a minnow by crypto requirements, with every token valued at round US$0.0000079 at time of writing, the worth of Safemoon has risen steeply by over 1,000% since final Friday, giving it a market cap of round US$4.6bn and drawing contemporary curiosity from buyers.
Technically, Safemoon just isn’t a cryptocurrency in the identical means that Bitcoin is, reasonably it serves as a decentralised finance (DeFi) token.
DeFi tokens purpose to copy monetary processes with out the necessity of a third-party middleman comparable to a financial institution, as a substitute selecting to depend on laptop processes comparable to sensible contracts.
Safemoon particularly says it’s aiming to resolve points that afflict different cryptos in the marketplace, particularly token worth volatility and an inclination of merchants to promote belongings shortly and never maintain onto them for the long run.
To handle this, Safemoon penalises any sellers of its tokens with a ten% transaction payment, half of which is then redistributed to different token holders.
Is it the brand new Dogecoin?
With its latest surge in worth and microscopically low entry worth, Safemoon is being in contrast by some to fellow crypto minnow Dogecoin, which regardless of being arrange as one thing of a joke in 2013 has seen its worth rocket in 2021, thanks partly to the again of excessive profile people comparable to ’s () boss Elon Musk.
From its comparatively obscure origins, Dogecoin now has a market cap of round US$51.4bn, making it the fifth most dear crypto in the marketplace.
With this in thoughts, it could possibly be argued that Safemoon has extra going for it than Dogecoin has, with the corporate behind the token planning to launch its personal trade by way of a US$1mln fundraising, of which it says it has presently amassed simply over US$770,000
Whereas the token remains to be comparatively unknown throughout the broader crypto funding sector, the corporate is aiming to reside as much as its title and ship its worth “safely to the moon” by the tip of the yr, primarily by way of the event of a number of tasks together with performance for non-fungible tokens (NFTs).
Safemoon can be aiming to record on extra crypto exchanges comparable to (NASDAQ:COIN) to extend its accessibility to buyers.
Nonetheless, given its present lack of entry to the mainstream market (shopping for Safemoon presently entails a considerably advanced collection of transactions throughout a number of cryptos and platforms) and standing as an unknown entity, many are treading cautiously.
Nonetheless, if Safemoon can show its legitimacy, and if its social media-focused promotion technique pays off, it might discover itself having fun with a trajectory just like Dogecoin.