Dogecoin is a “meme” cryptocurrency that seems to have been created as a joke
Yuriko Nakao / Getty
- Safemoon, a brand new digital token launched in March, rapidly caught the eye of crypto merchants.
- The seek for the brand new cryptocurrency this week peaked on April twentieth. The day Dogecoin ought to rise to $ 1.
- “SafeMoon is much like Dogecoin within the sense that it’s unclear what use the venture has or can have,” John Wu, president of Ava Labs, informed Insider.
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April twentieth was alleged to be Doge’s Day.
However as an alternative of seeing their favourite meme-based token rocket at $ 1, Dogecoin lovers watched the social media chatter merge round a lesser-known coin: Safemoon.
Safemoon was launched in March and is up round 2,000% in a single month, in response to CoinGecko. The seek for the cryptocurrency this week peaked early April 20 because the momentum behind Dogecoin was set to choose up. The coin climbed to a excessive of $ 0.00000904 at round 11 a.m. ET on Wednesday and continued to climb 3% by way of the subsequent day, in response to CoinGecko.
To the dismay of Dogecoin followers, the meme token fell 18% on Thursday after hitting a excessive of $ 0.42 and has continued to slip since then, even falling briefly under $ 0.20 on Friday.
Safemoon is a decentralized monetary token that was launched in March 2021. In response to its web site, the tagline is “Safemoon to the Moon!”, An analogous tagline utilized by Dogecoin followers. “To the Moon” was made well-known by celebrities like Elon Musk, a supporter of Dogecoin, who is understood for elevating the token together with his unfathomable tweets.
“Safemoon is much like Dogecoin within the sense that it’s unclear what use the venture has or can have,” John Wu, president of Ava Labs, the staff behind the altcoin avalanche, informed Insider.
He continued, “At worst, it is a rip-off or a Ponzi scheme. Higher stated, this was a euphoric rally powered by TikTok and different viral advertising engines.”
Nevertheless, in contrast to Dogecoin and different cryptocurrencies, Safemoon encourages traders to carry on. Its web site states that “static reflection” offers homeowners passive rewards. Because of this the staff behind safemoon plans to make the reward depending on the quantity of the token traded. Safemoon costs sellers a ten% redemption payment and distributes half of that payment to different homeowners.
Ian Balina, founder and CEO of Token Metrics, a data-driven funding analysis platform for crypto, stated Safemoon does not have a lot to say but, particularly in terms of its blockchain, however buying and selling quantity is getting some consideration.
“It is very talked-about on-line,” Balina informed Insider. “Individuals solely soak up tokens, similar to Dogecoin which is social media primarily based.”
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The brand new cryptocurrency has gained prominence on social media, particularly on TikTok. A video selling the coin acquired practically half one million views.
Ben Weiss, CEO of CoinFlip, which affords bitcoin ATMs within the US, stated Safemoon had discovered its manner into the social media tendencies and constructed a group of hype and hypothesis.
“”[Social media] has led to a rally and individuals are shopping for within the hype with out understanding a lot in regards to the Safemoon utility or once they do not wish to miss out on the subsequent Dogecoin, “he informed Insider.” Since blockchain and cryptocurrencies are nonetheless so new, and individuals are given the insane value motion round them, it is no shock to see initiatives much like this one which are constructed on hype. ”
Here is what 5 different consultants consider the most recent craze gripping the crypto market:
“Safemoon is considered one of a number of new cryptocurrencies out there attempting to resolve among the issues Bitcoin and different cryptos have which are blocking mass adoption. For instance, Bitcoin is notoriously unstable and its valuation can range extensively from daily subsequent and that makes it undesirable for day-to-day buying and selling or doing enterprise. Safemoon’s redemption payment is an try and create crypto with much less value volatility and subsequently extra usefulness in real-world functions. “- – Harold Montgomery, Managing Director at Wirex USA
“SafeMoon appears to be simply one other meme coin that powers FOMO for retail. Safemoon’s built-in options purpose to penalize sellers of its token whereas rewarding holders. It costs sellers excessive transaction charges for promoting the token and pays a part of this payment to homeowners. This idea is just not engaging to discerning merchants because it artificially will increase the value within the brief time period with no clear profit for long-term homeowners. If the Safemoon staff brings a legit innovation, it might probably be theirs artistic identify and its branding. “- – Kapil Rathi, co-founder and CEO of CrossTower
“With Ethereum transaction charges so excessive over the previous few weeks, herds of retail traders have begun migrating to Binance Good Chain (BSC), a extra central competitor that’s considerably cheaper to make use of (for now), albeit with a a lot much less mature developer ecosystem On the identical time, TikTok has actually began to determine itself as a platform for crypto influencers and a few of these influencers have began directing their followers to new tokens on the BSC platform. Safemoon is an instance of a brand new venture on BSC with untested tokenomics, which depend on Ponzi-like mechanisms that penalize sellers for promoting the token. Additionally they seem to reward holders total by giving them half of the sellers’ tokens by way of a shared liquidity pool, encouraging them to take action, not a part of it one “on the market.” Carrot Whip Strategy.– Demetri Kofinas, creator and host of Hidden Forces, a weekly podcast
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“Regardless of the current surge, it is essential to notice that Safemoon is comparatively new to the market and traders must weigh the potential dangers earlier than shopping for Safemoon tokens. Personally, I consider it is too early to find out about Safemoon’s success to guage.” Rising worth might simply be a part of the pattern that’s driving Dogecoin costs larger … Nevertheless, the corporate behind safemoon plans to start out its personal change with $ 1 million in funding from the greater than half has already been raised. They’re headed for the massive leagues like Coinbase by which they wish to listing themselves. “- – Peter Jensen, CEO at RocketFuel Blockchain
“We expect very fastidiously in regards to the assets to make obtainable to our tens of millions of consumers all over the world. Improvements within the crypto area are occurring at breakneck pace and it may be troublesome to essentially choose a top quality venture towards a venture of lesser high quality If you do not have sufficient info, we advocate everybody researching cryptocurrencies earlier than investing, to be sure to are utilizing a reliable buying and selling platform and to watch out with something that appears too good to be true, for context we do not listing this to SafeMoon. “- Jason Karsh, Vice President Advertising and marketing at Blockchain.com