Safemoon is a blockchain project that promotes the adoption of decentralised finance (DeFi) globally via its strong community focus. The blockchain project is built on the Binance Smart Chain (BNB Chain); hence, it boasts of faster transaction speeds and lower fees than those built on Ethereum.
The project is unique because it charges a 10% fee for all transactions to stop large investors known as whales from selling their SFM tokens in large volumes due to the prohibitive fees.
The 10% fee is allocated in the following manner, 5% is allocated to existing SFM holders, while the other 5% goes to liquidity pools on Pancakeswap.
The Safemoon community protocol operates via four pillars: the automatic acquisition of liquidity providers, a reflection function, a contribution to the ecosystem growth fund, and a burn mechanism.
Safemoon may have looked like a meme coin at the start, but it has tried to shake off its volatile beginnings with the launch of version 2 of the blockchain and its token. According to the company, the firm is also promoting its DeFi wallet, which surpassed 1 million wallet downloads in just five months.
The wallet has also garnered celebrity endorsements from public figures such as Dave Portnoy of Barstool Sports and rapper Lil Yachty, whose real name is Miles Parks McCollum. The rapper even suggested that SFM may be the new Dogecoin, which, while attracting some investors, may alienate others since Dogecoin is simply a meme coin.
Unlike other meme coins, Safemoon has actual uses that work in its favour, especially as a wallet that can be used to purchase crypto assets. In addition, the company is targeting a new area of the market since its global head of products recently said that they want to allow businesses interested in the cryptocurrency markets to list their crypto assets.
The blockchain project is currently working on the Safemoon card, which it says is almost ready, and there are plans to launch a cold wallet and a crypto tokens exchange that it says will bring tokenomics to all of crypto. While there is no timeline on when these other features and products shall be ready, it is clear that Safeocin is not a meme coin.
The project also offers the Mooncraft server for the popular Minecraft game that features several game modes, active development, and other fun activities for players.
From a technical analysis perspective, SFM has been around for a few months; hence, we do not have much price data. However, the token has been on a downtrend for most of April and bounced off the 0.000612 support level. The crypto recently retested the level, which held and could easily trigger a rally higher.
Support the support level hold, the next target for bullish traders would be the 0.000895 resistance level, which, if broken, brings the 0.00127 resistance level into play. Many crypto analysts predict that the SFM token will hit the $0.1 price by the end of the year if the broader crypto industry recovers and starts heading higher.
The Safemoon crypto price.
Safemoon crypto price chart and analysis.
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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading