More information about the Dogecoin competitor SafeMoon continues to filter out as people turn their attention to alternative cryptocurrencies.
What is SafeMoon?
SafeMoon is a new cryptocurrency that looks to be a Dogecoin competitor as it relies on hype and social media discussion, as I wrote for the Deseret News.
Benzinga reports that SafeMoon resembles “a pyramid scheme instead of a sound monetary policy” since people are charged a fee for selling their holdings.
- “Essentially, investors rely on more people buying into SafeMoon to increase their investment,” according to Benzinga.
SafeMoon vs. Dogecoin
So what makes SafeMoon different than Dogecoin and other cryptocurrencies? Well, according to Fortune, SafeMoon prides itself on not being a day trading cryptocurrency where people can sell quickly and profit. Rather, it rewards long-term investors.
To do so, SafeMoon will charge a 10% fee anytime someone sells their holdings. Half of those fees are then sent to SafeMoon coin owners, who receive some additional coins as a prize or reward for holding their coins.
- “The goal here is to prevent the larger dips when whales decide to sell their tokens later in the game, which keeps the price from fluctuating as much,” SafeMoon told Fortune.
- Benzing reports that “most investors would agree that Safemoon has higher potential for returns than DOGE, albeit an extremely high risk investment.”
What’s next for SafeMoon?
The cryptocurrency plans to grow in the next few months. SafeMoon wants to build its own app, a cryptocurrency wallet (which allows you to view your holdings) and games, according to Fortune. The company also wants to explore joining cryptocurrency trading apps like Binance.