SafeMoon, a community-driven DeFi Token largely popularised by Redditors, on Tuesday finally opened registration for the beta of its wallet in a move to further establish its leadership and move close to $1 a coin like Dogecoin.
The wallet is one of the several projects the SafeMoon team is working on to solidify the new cryptocurrency position among thousands of other coins in the market.
SafeMoon, created in March 2021 on the Binance Smart Chain blockchain, adopted a unique community wealth creation formula called tokenomics.
SafeMoon charges a 10 percent fee on transactions, with 5 percent redistributed (or reflected) to token holders while the remaining 5 percent are sent to a burn wallet. Therefore, holders earn regardless of market conditions.
SafeMoon multiplied rapidly in value after a wave of celebrity endorsements, including from rapper Lil’ Yachty, YouTuber Logan Paul, sports blogger Dave Portnoy and former Backstreet Boys member Nick Carter. SafeMoon hit a high of $0.00001375 in April 2021 before falling over 70 percent down to $0.000003919 as of June 2021 with around 2.3 million holders on the PancakeSwap exchange alone.
According to the official website, SafeMoon was first listed on PancakeSwap on the 1st March 2021, followed by: BitMart on 5th April 2021; WhiteBit on 5th April 2021; Gate.IO 23rd April 2021; HotBit 23rd April 2021; ZBG 11th May 2021; MXC 11th May 2021; Burrency 12th May 2021 and BitBns 14th May 2021.
SafeMoon Security
In May, the token was audited by security auditing firm CertiK, receiving a score of 82/100. The audit report identified no critical issues, but noted one ‘major issue’ that the project’s owners have “control over tokens funded by SafeMoon’s seller fee”.
In response to the one ‘major issue’ raised by CertiK, the SafeMoon team stated that “In regards to owner control, we are a fair launch governed by a central board which is subject to governmental regulations and law. We are a legally registered entity in accordance to the law and jurisdictions in which we operate”. The CTO of SafeMoon, Thomas Smith, further stated that the team was “aware of the issues” and “[has] policies and procedures around how the contract operates to alleviate risk”.
A separate security audit identified a “vital vulnerability” in SafeMoon and hundreds of other projects which all forked from the same parent project containing the vulnerability.
SafeMoon Criticism
The token has been described as a “meme coin” alongside Dogecoin and Shiba Inu, with much of its value attributed to the result of a market frenzy.
The developers of SafeMoon have been described as having “little proof of previous success”, with the token having been described by some financial experts as a “pump and dump”, a “cult stock”, “meme stock”, “the furthest thing from safe” and that it “doesn’t do anything”.
After the price of a SafeMoon token multiplied by 12x during a single week in April 2021, opinion columnists in various financial magazines likened SafeMoon to a ponzi scheme or pyramid scheme, where gains to early investors were paid only by incoming investors who expected a similar rate of return, with some citing the fact that each transaction sends a portion of the transacted value to existing holders of the token, as well as a portion of the transacted value to a wallet controlled by the coin’s authors.
