Cryptocurrencies are slowly spreading their reach to new domains and they are being immensely used in carrying out major transactions. It has led to the introduction of many new cryptocurrencies and one such name in this context is SafeMoon.
SafeMoon is a deflationary token which means it decreases its volume over time and increases its value significantly. The SafeMoon Protocol is a community-driven and fairly launched Defi token which involves three functions in every trade.
It is a community-driven and fair launch in the sense that developers had participated in the fair launch with everyone by burning all team tokens. SafeMoon trading involves three functions namely, reflection, LP acquisition, and burn.
LP acquisition means every trade leads to the automatic generation of liquidity locked inside PancakeSwap LP. SafeMoon undergoes a burning process which means that after every transaction 5% of SafeMoon gets permanently burned.
There is a 10% fee on purchase and sale of every transaction and its 5% gets redistributed to other shareholders. Financial experts share that coin burning helps digital currency miners or developers remove coins from circulation. Thus, it reduces inflation by putting a cap on the circulation of coins.
SafeMoon was introduced on March 8, 2021, and it has seen positive growth over the last three weeks. It simply highlights that it has a high potential to grow in the coming time. And SafeMoon could turn out to be a preferable option for investors in the cryptocurrency world.
By burning, developers simply send SafeMoon tokens from circulation to private addresses for which one cannot easily obtain keys. SafeMoon market cap value stands at $165.2 M and it has the potential to grow more in the coming time.