The price of the native token of the SafeMoon blockchain momentarily surged over 8% in price this morning Asia time, as the developer behind the token announced that it had successfully transitioned to the second iteration of the network. SafeMoon’s price retreated throughout the day, however, and was trading at US$0.0000016 at press time, 2% below what it was right before the announcement, according to CoinMarketCap.
- SafeMoon 2.0 will introduce three major updates to the network: implementation of a 1,000:1 consolidation of its tokens — reducing the number in circulation by a factor of 1,000 without affecting user balances; improving the quality, security and accessibility of the network; and unlocking future developments for the network.
- Launched on the Binance Smart Chain in March 2021, SafeMoon has garnered a significant amount of social media attention for its price action and mission, which is centered around encouraging long-term investment by charging a 10% fee for each transaction. Half of this fee is shared among long-term holders, while the other contributes to a liquidity pool intended to stabilize the price of the token.
- Named after a portmanteau of “safely to the moon,” SafeMoon is also notorious for high price volatility. Lacking a specific use case beyond as a vehicle for investment, SafeMoon has been compared to other volatile cryptocurrencies such as Dogecoin or Shiba Inu coin, and referred to by some investors as a “shitcoin.”
- SafeMoon rose over 1,500% in price to reach its all-time high of US$0.00001399 shortly after its launch following high-profile endorsements from celebrities such as rapper Lil Yachty, YouTuber Jake Paul and popular sports blogger Dave Portnoy. The coin fell back sharply after this, however, and was trading roughly 90% below that high point for most of the year, according to CoinMarketCap.