DeFi token SafeMoon (SAFEMOON) has surged over 130% in the past 24-hours, and over 2900% in three weeks, drawing interest from a variety of investors in the crypto space.
What Happened: The newly launched protocol aims to build rewards for people who hold their tokens for a longer time and penalize those that choose to sell quickly.
I turned 3k into 91k in 3weeks….#Safemoon
— Khalil Underwood (@RealKhalilU) April 19, 2021
SafeMoon charges sellers a fee of 10% of the amount that they choose to sell while rewarding those who still hold the cryptocurrency with 5% of the seller’s fee.
The DeFi protocol is also gearing up to launch an NFT exchange, for which it has claimed to have raised $700,000 from donors for the project.
According to SafeMoon CEO Johnny Karony, the exchange would extend the concept behind SafeMoon to other cryptocurrencies as well.
“Users holding on our platform will receive static reflection through all transactions, meaning when you hold your BTC, or Bitcoin, you will receive more Bitcoin,” he explained in a video.
So far, the protocol has managed to acquire over 600,000 holders of SafeMoon tokens based on the data shared on its website.
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Why It Matters: At the time of writing, SafeMoon’s crypto token is only available on WhiteBIT, BitMart (BMX), and decentralized exchanges like PancakeSwap (CAKE).
Amidst calls from the SafeMoon community for Binance and other top crypto exchanges to list the cryptocurrency, reports have also emerged that the sharp increase in price may have been the result of a concentrated effort by a group of retail traders.
$50 in next 12hrs
RT this and tweet the text with picture
Today I found out that the only reason #safemoon and #doge are mooning is a large trading group pumping their price to dump it later on. They have been pumping $doge for weeks: https://t.co/uiPhF2WXBP pic.twitter.com/0Hatx639Rw
— Venizo Crypto (@cryptovenizo) April 19, 2021
A pseudonymous crypto trader called “Venizo Crypto” brought attention to a large trading group that had recently pumped the price of DOGE by over 200%, which had now turned its attention towards SafeMoon.
The discord group called “Big Pump Signal” seeks to pump cryptocurrency prices in a “controlled manner.”
The process of doing so can boost the coins by more than 50%, stated the admin.