The cryptocurrency market is a vast and sometimes confusing place with different coins to choose from.
There can be plenty of new cryptocurrency that can pop up and become popular all of a sudden which can confuse investors and those interested in cryptocurrency.
One of the newest cryptocurrency that has come to the scene is SafeMoon which has seen a massive increase in interest lately.
Traders have flocked to the new currency and it has seen a 910 per cent increase in price since April 16 to April 20.
But what is SafeMoon and why has it garnered such an interest? And is it something you should look out for?
Here’s everything we know about SafeMoon and why it could be the next big cryptocurrency on the market.
What is SafeMoon?
SafeMoon stands from “Safely to the Moon”, a phrase that was adopted by Redditors about DogeCoin which refers to the price flying upwards “as high as the Moon”.
Much like Dogecoin, it is cryptocurrency that was started off the back of an internet meme.
SafeMoon doesn’t tout itself as a cryptocurrency but instead as a DeFi token, a decentralised finance token. DeFi’s aim is to bring about disruption to the financial world and enable people to lend in peer-to-peer networks without needing a physical bank.
So the product rewards people who hold onto it instead of trading it. By doing this, it implements a 10 percent penalty tax fee.
Cryptocurrency is an asset that can be exchange for goods and services, much like normal money.
However, cryptocurrency is unique as it is typically decentralised so there is no control from government interference. Cryptocurrency uses something called a blockchain.
A blockchain is spread across many computers that manages and records transactions.
Cryptocurrency can be mined by people by using computers. By mining cryptocurrency, people are rewarded small amounts of Bitcoin or another crypto for doing so.
After that, five percent of the tax is then allocated to people who still own SafeMoon currency. This is to prevent the price from dropping as people start selling the token.
It hasn’t yet been recognised by the major cryptocurrency sites such as Coinbase but why did it get so popular?
It appears the coin became widely recognised on Twitter and many of its posts have thousands of likes by cryptocurrency watchers.
According to coinmarketcap.com, the price stands at $0.00000489 despite rising massively to $0.000014 during its all-time high but the price seems to be falling dramatically.