Dogecoin's slide this week after the failed 'Doge Day' has crypto traders eyeing a replacement for the world's favorite meme token | Currency News | F...
Dogecoin is a "meme" cryptocurrency that appears to have been created as a joke
Yuriko Nakao / Getty
- Safemoon, a new digital token launched in March, quickly caught the attention of crypto traders.
- The search for the new cryptocurrency this week peaked on April 20th. The day Dogecoin should rise to $ 1.
- "SafeMoon is similar to Dogecoin in the sense that it is unclear what use the project has or will have," John Wu, president of Ava Labs, told Insider.
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April 20th was supposed to be Doge's Day.
But instead of seeing their favorite meme-based token rocket at $ 1, Dogecoin enthusiasts watched the social media chatter merge around a lesser-known coin: Safemoon.
Safemoon was launched in March and is up around 2,000% in one month, according to CoinGecko. The search for the cryptocurrency this week peaked early April 20 as the momentum behind Dogecoin was set to pick up. The coin climbed to a high of $ 0.00000904 around 11 a.m. ET on Wednesday and continued to climb 3% through the next day, according to CoinGecko.
To the dismay of Dogecoin fans, the meme token fell 18% on Thursday after hitting a high of $ 0.42 and has continued to slide since then, even falling briefly below $ 0.20 on Friday.
Safemoon is a decentralized financial token that was launched in March 2021. According to its website, the tagline is "Safemoon to the Moon!", A similar tagline used by Dogecoin fans. "To the Moon" was made famous by celebrities like Elon Musk, a supporter of Dogecoin, who is known for pushing the token higher with his unfathomable tweets.
"Safemoon is similar to Dogecoin in the sense that it is unclear what use the project has or will have," John Wu, president of Ava Labs, the team behind the altcoin avalanche, told Insider.
He continued, "At worst, it's a scam or a Ponzi scheme. Better said, this was a euphoric rally powered by TikTok and other viral marketing engines."
However, unlike Dogecoin and other cryptocurrencies, Safemoon encourages investors to hold on. Its website states that "static reflection" gives owners passive rewards. This means that the team behind safemoon plans to make the reward dependent on the volume of the token traded. Safemoon charges sellers a 10% redemption fee and distributes half of that fee to other owners.
Ian Balina, founder and CEO of Token Metrics, a data-driven investment research platform for crypto, said Safemoon doesn't have much to say yet, especially when it comes to its blockchain, but trading volume is getting some attention.
"It's very popular online," Balina told Insider. "People only take in tokens, just like Dogecoin which is social media based."
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The new cryptocurrency has gained prominence on social media, especially on TikTok. A video promoting the coin received nearly half a million views.
Ben Weiss, CEO of CoinFlip, which offers bitcoin ATMs in the US, said Safemoon had found its way into the social media trends and built a community of hype and speculation.
"" has led to a rally and people are buying in the hype without knowing much about the Safemoon utility or when they don't want to miss out on the next Dogecoin, "he told Insider." Since blockchain and cryptocurrencies are still so new, and people are given the insane price action around them, it's no surprise to see projects similar to this one that are built on hype. "
Here's what five other experts think of the latest craze gripping the crypto market:
"Safemoon is one of several new cryptocurrencies in the market trying to solve some of the problems Bitcoin and other cryptos have that are blocking mass adoption. For example, Bitcoin is notoriously volatile and its valuation can vary widely from day to day next and that makes it undesirable for day-to-day trading or doing business. Safemoon's redemption fee is an attempt to create crypto with less price volatility and therefore more usefulness in real-world applications. "- - Harold Montgomery, Managing Director at Wirex USA
"SafeMoon seems to be just another meme coin that FOMO is driving into retail. Safemoon's built-in features aim to penalize sellers of its token while rewarding holders. It charges sellers high transaction fees for selling the token and pays part of this fee to owners. This concept is not attractive to discerning traders as it artificially increases the price in the short term with no clear benefit for long-term owners. If the Safemoon team brings a legitimate innovation it could possibly be theirs creative name and its branding. "- - Kapil Rathi, co-founder and CEO of CrossTower
"With Ethereum transaction fees so high over the past few weeks, herds of retail investors have begun migrating to Binance Smart Chain (BSC), a more central competitor that is significantly cheaper to use (for now), albeit with a much less mature developer ecosystem At the same time, TikTok has really started to establish itself as a platform for crypto influencers and some of these influencers have started directing their followers to new tokens on the BSC platform. Safemoon is an example of a new project on BSC with untested tokenomics, which rely on Ponzi-like mechanisms that penalize sellers for selling the token. They also seem to reward holders overall by giving them half of the sellers' tokens through a shared liquidity pool, encouraging them to do so, not part of it of a "carrot-whip approach.- Demetri Kofinas, creator and host of Hidden Forces, a weekly podcast
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"Despite the recent surge, it's important to note that Safemoon is relatively new to the market and investors need to weigh the potential risks before buying Safemoon tokens. Personally, I believe it's too early to know about Safemoon's success to judge." Rising value could just be part of the trend that is driving Dogecoin prices higher ... However, the company behind safemoon plans to start its own exchange with $ 1 million in funding from the more than half has already been raised. They are headed for the big leagues like Coinbase in which they want to list themselves. "- - Peter Jensen, CEO at RocketFuel Blockchain
“We are very careful when considering the resources to make available to our millions of customers around the world. Innovations in the crypto space are happening at a breakneck pace, and it can be difficult to really get a quality project from a project with less Assessing Quality If you don't have enough information, we advise everyone to research cryptocurrencies before investing, make sure you are using a trustworthy trading platform, and be careful about anything that seems too good to be true the context we do not list this SafeMoon. "- Jason Karsh, Vice President Marketing at Blockchain.com
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