That’s not always a deal-breaker, and here’s why.īitcoin, the granddaddy of them all, has a supply capped at 21 million. SAFEMOON is yet another token with a vanishingly small price and an incomprehensibly large supply. SafeMoon faces stiff competition, but who’s to say they won’t succeed? Tokenomics Looking forward, it could provide a stable platform on which to launch DeFi projects and new tokens. They participate in the project like everyone else, aligning their interests with those of the wider community. For example, the dev team burned all their tokens, making a rug-pull or a dump much less likely. On the other hand, SafeMoon is a fair-launched token with some ok looking tokenomics. Trying to get something for nothing out of the universe will likely bite you on the behind. If this is the attraction then I have bad news. From the hype on social media, its main purpose today is to make everyone rich for free. The SafeMoon protocol is yet another token that the world could probably live without. It makes no sense to the traditional Boomer investor studying price/earnings ratios, but it’s a disturbing reality of the current economic zeitgeist. It’s similar to the obsession tech some companies have with gaining market share over profitability. These are new and different fundamentals. If a meme coin like SAFEMOON is to prosper, it relies on awareness, hype, fans, community, and attention. They’re not showing off their team of massive brains, or bragging about their deep-pocketed angel investors. It doesn’t claim to be world-beating technology or a much-needed piece of infrastructure. We can take a look at the usual fundamentals, however, SAFEMOON is a meme coin.
If SAFEMOON is to survive and flourish beyond a market recovery, it will do so on its merits as a cryptocurrency. There’s simply not enough SAFEMOON data to go on, so far. The price will almost certainly recover in line with the general market, so for technical price analysis, you’d be better off looking at BTC and ETH trends. The difference is that SAFEMOON only spawned a few months ago. Like almost every other cryptocurrency, SAFEMOON has tanked badly over the last quarter. It actually sounds like both the most arbitrary, and the least decentralized approach possible. Having the team control the burns will future proof the protocol, or at least, that’s the theory. The destruction of coins has its own set of problems in the long term, but appearing to be deflationary is a must-have for cryptocurrencies these days.
#SAFE MOON PRICE PREDICTIONS MANUAL#
Manual Burns are more flexible than scheduled burns, true. I get the principle, but it feels like they are trying to steer a massive oil tanker with a pair of dinghy oars. An efficient market requires high liquidity, but this also benefits the price stability. LP Acquisition automatically grows the liquidity pool by taxing buyer and seller tokens from each transaction. I’m not sure this worked judging by the initial pump, followed by the typical price crash. By basing static rewards on trading volume and the amount held, early birds are incentivized to hold their SafeMoon rather than dump them on the market. The problem it tries to solve is early investors selling their SafeMoon, forcing a downward price pressure, and crippling more recent investors. Reflection/Static Rewards smooths out the profits paid by liquidity pool staking. You can read about it for yourself here, but simply put – Every transaction has Reflection, LP Acquisition, and a Burn. SafeMoon is a decentralized finance (DeFi) protocol token with three specific functions embedded in its code.
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