SafeMoon: The Price of the New Cryptocurrency Suddenly Takes a Plunge
SafeMoon is not a cryptocurrency but a DeFi Token
Due to the wild swings, SafeMoon ended up losing significant value in just one hour. Just recently, the new cryptocurrency lost up to 2/3 of its value. It first went down to $0.000005 from $0.000015. However, later, it slightly rose to $0.000007 again.
SafeMoon
Strictly speaking, SafeMoon is not a cryptocurrency but a DeFi Token – at least that is what the official website says. This DeFi token was launched a year ago by John Karony and seems to have gained some good attention in the crypto sphere.
In a Tweet, representatives at SafeMoon acknowledged the drop in the price. The token’s official Twitter account tweeted, “Who said there wouldn’t be turbulence… #SAFEMOON #HOLD”
Who said there wouldn’t be turbulence… #SAFEMOON #HOLD
— SafeMoon Protocol (@safemoon) April 21, 2021
Indeed, investing in cryptocurrencies does not automatically promise profits. Rather, one can lose all and gain nothing. Furthermore, crypto and DeFi tokens are very volatile. The prices can go up and low within a blink.
According to SafeMoon, people who hold on to the DeFi token get rewards. At the same time, those who sell their tokens face a penalty, which is a 10% charge on the amount that the person is selling. Out of this 10% charge, 5% of the cash gained is distributed/rewarded to the investors who are holding on to their tokens.
This is, of course, a marketing tactic. However, to keep the price of the token up, more buyers need to continue buying. Hence, it is certainly a risky one. As for the performance of this DeFi Token, it had a rise of 99 percent on Sunday. This was followed by the 91% increase in the price of Dogecoin within 24 hours after Elon Musk’s tweet.
It Is fascinating how Dogecoin ended up rising 365%, despite being a cryptocurrency that began as nothing but a joke. Also, Dogecoin is currently not listed on crypto exchanges.
Nevertheless, crypto enthusiasts who are planning to invest in the SafeMoon DeFi token must only invest what they could afford to lose. The recent drop in Bitcoin price simply proves how volatile the crypto market can be.
The world of blockchain is also expanding beyond cryptocurrencies. For instance, people can now own NFT (Not Fungible Tokens) such as texts, artworks, images, assets, and a lot more. Indeed, NFTs are gearing up to play a big role in the future crypto economy.
Share this on social media
