What is SafeMoon?
SafeMoon, A token that rose to popularity on social media this spring, Recent market upshifts have been unable to counteract the trend of prices continuing to fall. Interestingly, the coin has dropped 16% in the last day and fallen out of the top 100 coins according to CoinGecko and Nomics.
What’s happening to SafeMoon Prices?
There have been many cryptocurrency successes this year. SafeMoon made a rather unusual break out into the public spotlight earlier this spring as their coin rapidly increased in popularity. The sudden increase seems to have been based on their connection to Binance Smart Chain, and it also caused them to reach an approximate market cap of $6 billion in May. When the wider market stumbled, stocks for SafeMoon also began to drop. In the weeks that followed, other bad news continued to come out and pushed its price down even more. While other coins are finally ascending, SafeMoon is continuing to plummet.
SafeMoon’s price has seen a significant drop today. It’s at $0.00000155 per token. It’s been down for the past week and CoinGeco’s list. The market cap has dropped to $813 million, which means SafeMoon is ranked 109 on the list now, albeit still one of the top cryptocurrency coins.
The current state of the SafeMoon company strongly contrasts that of the rest of the industry. Last week, CoinGecko put out their list of the top 100 cryptocurrencies by market capitalization. The report revealed that a vast majority of these digital currencies are up over the last 7 days, with only token losses sitting at 1.6%.
Crypto-currencies that are based on popular memes, like Dogecoin, are also struggling. They’re up nearly 39% on the week and rank 7th in terms of market cap. Ethereum-based rival Dogecoin saw a boost this week. They might not stay at the top for long. Meanwhile, SafeMoon’s price keeps falling and is now close 86% off its peak in May.
If the trends continue going downwards, SafeMoon won’t be the first cryptocurrency to rapidly rise to fame and then fade away without a trace- something we’ve seen plenty of over the years. We want to drive long-term value so that SafeMoon tokens are never abandoned and forgotten.
SafeMoon is a platform that lets users earn passive rewards, just by holding the token. There’s no need to stake holdings inside the network. SafeMoon imposes a 10% tax on all transactions and then distributes a portion of that fee across token holders as so-called “reflections.” The use of this token is a gradual way to boost customer’s holdings. They are not taxed when you buy and use the cryptocurrency, but things get a little more complicated when you want to sell or trade them. The rules of the token can be complicated, and it has been criticized for being a Ponzi scheme.
It’s a cryptocurrency that is designed for holding, but with the declining and odd performance of SafeMoon, its holders seem to be selling. Daily trading volume for SafeMoon fell behind $10 million on multiple days in the last week but now tops $40 million for today, which is the highest mark since May
According to SafeMoon subreddit posts, whales are dumping their positions based on public blockchain data. A wave of panic selling could be behind the recent price drop. Despite all of this, the general sentiment on Reddit seems to be largely positive. After all, everyone else is getting a small cut of these big sale transactions, even if those tokens are slowly losing their value.
SHOUTOUT TO ALL DIAMOND HANDS 💎 🙌 💎 WE APPRECIATE YOU 🚀🌕 #SAFEMOON— SafeMoon (@safemoon) August 16, 2021
Meanwhile, the @SafeMoon Twitter account–which has nearly a million followers–tweeted “SHOUTOUT TO ALL DIAMOND HANDS” today, using a crypto phrase to indicate that they’re not selling off their coins amidst the volatility in the market. The SafeMoon project’s latest announcement is all that people are talking about. The launch of their official wallet app on August 28th generated an enormous amount of feedback the moment it was first released for beta testing in June.
It remains unknown whether or not the meme coin will be able to recapture some of its spring hype- SafeMoon has had a tough time lately, but that doesn’t mean you have to sell at a loss just because you know the crypto market is bearish. As long as the 2.5 million holders on SafeMoon keep their “diamond hand”, they won’t get burned in this losing streak.
Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.