SafeMoon Releases a Beta Wallet – How Is It Going to Change the Cryptocurrency Market
Cryptocurrency project SafeMoon opened registration for the closed beta version of its wallet and invited 500 users to test the product containing the SafeMoon token.
SafeMoon positions itself as a “safe” way to raise the price of a token. The project tried a completely non-Bitcoin way to encourage people to keep their tokens. Unfortunately, at the moment, they cannot be spent on anything else except other cryptocurrencies.
SafeMoon charges 10% tax on every transaction. Is it a purchase or a sale – doesn’t matter. Part of the tax goes directly to the liquidity pool. And the other part of the commission is distributed among the remaining holders depending on the number of tokens they own.
So, in theory, instead of cutting supply to raise prices, such a process should stabilize SafeMoon’s floor price.
In practice, SafeMoon’s price has been constantly changing since its launch in March 2021. According to CoinGecko data, the token is currently down about 60% from its all-time high. But it also rose 9624% from the original low. Nevertheless, its bottom remained at the same level after the fall in May.
With additional tokens in hand, holders probably don’t panic. And those who bought the token at the peak have to wait for others to complete the transaction. This is why many call SafeMoon a Ponzi scheme.
At the moment, most of the trading takes place on two exchanges: PancakeSwap and BitMart.
Although BitMart posted SafeMoon in April, it did not have a fully integrated tokenomics scheme that would allow remaining holders to pay their due share of the commission on a daily basis. Instead, the exchange decided to add the corresponding amount to users’ wallets on a monthly basis. The first distribution ended on May 12th.
This is why SafeMoon’s own wallet with “integrated tokenomics” can gain popularity among users. In addition, SafeMoon may lower taxes on certain transactions to encourage people to keep tokens in the official wallet.
Unfortunately, SafeMoon still hiding details about its product. A registration sheet in Google form is asking users to determine the type of their phone. That is why it’s unclear if the app is made for Android, iPhone, or both.
SafeMoon said they want to test how the wallet works even on low-power devices.
“Therefore, if you do not have a flagship phone, do not let it refuse to apply for participation in beta testing,” added the company.
Moreover, beta testers must sign a non-disclosure agreement, which means that for now there will be no more details.
SafeMoon isn’t the only one interested in building its own wallet. More recently, software developer and creator of Square, Jack Dorsey, stated that payments company Square is considering creating a hardware wallet for Bitcoin.
The product could be merged with the Cash App, Dorsey said. But such integration can only be a partial solution, and you will have to create a special application for smooth operation.