- SafeMoon price reverses the August 7 spike of 30.59%, relinquishing the upper trend line of the descending triangle pattern.
- SAFEMOON is trading again below major resistance associated with the May 19 low of $0.00000261.
- SafeMoon’s unusual structure of charging a 10% fee to buy and another 10% to sell is a disincentive for speculators.
Safemoon price fails to hold the largest one-day gain since the May 6 rally of 59.79%, while declining back below the upper trend line of the descending triangle, the May 19 low of $0.00000261 and the 20-day simple moving average (SMA) at $0.00000252. The short-lived rally reflects an outlier cryptocurrency with a questionable fee structure that frequently hypes a SafeMoon Wallet before extending the launch date, now on August 28th, 2021.
SafeMoon fee structure raises a big red flag
In the beginning, SafeMoon distinguished itself with a massive return of more than 19,000%, putting it on the map of social media coverage and establishing it as another beneficiary of the FOMO condition that drove meme tokens in 2021.
However, further investigation into the SafeMoon fee structure revealed a 10% fee to buy tokens and another 10% to sell. Half of the paid fees are directly paid to current owners of SAFEMOON as motivation to keep holding the digital asset, and the other half is funneled to a liquidity pool that the developers direct.
The fee structure raises a red flag for most accomplished investors. In particular, the mechanism to curtail selling opens SAFEMOON up to manipulation risk.
The unique but questionable fee structure leaves many questions and detracts from the authenticity of SAFEMOON in the cryptocurrency market. Moreover, it is a disincentive for short-term retail speculators trading over shorter periods, who are often the buying pressure behind notable moves in meme tokens. As a result, the SafeMoon price action has reflected the lack of an impulsive retail bid. There is a strong probability that the reason is motivated by the complex fee structure.
SafeMoon Wallet launch has still not happened
SafeMoon has been hyping the new SafeMoon Wallet for several months, but it has been met with delays. During this Sunday’s twitch stream, the executives confirmed that the Wallet launch would be on August 28th, 2021 and emphasized their intentions “to do things the right way” and how that impacted the timing of the release.
According to the website, the SafeMoon Wallet is a “secure place to store and trade your SafeMoon.” Some key features include Simplex integration, dark mode, contacts list, hold to cancel, and haptic feedback.
Also, during the Sunday Twitch stream, the executives announced many updates and products in the pipeline for 2021, probably with the hope of boosting SafeMoon price. The roadmap includes version 2 of SafeMoon coming in September, the launch of the SafeMoon exchange in October, which seeks to host 3,000 transactions simultaneously, the launch of the SafeMoon podcast in November and the SafeMoon blockchain in December.
✨ #SAFEMOON KEY MOMENTS pic.twitter.com/2aUQXrWKES
— SafeMoon (@safemoon) August 8, 2021
