Over the last few hours, the situation for the cryptocurrency has improved dramatically. After a prolonged period of flexion, we are now witnessing the bounce to the top of many tokens.
If, however, investors hope that this is not just a passing trend, many of them continue to question the best way to proceed to mitigate the risks. And, above all, they try to identify projects which are able to give guarantees in the immediate future. Among them, many in these hours are pinning their eyes on SafeMoon. What is the reason for this considerable interest?
What is SafeMoon?
SafeMoon was launched in March in the United States. It's about a decentralized cryptocurrency that runs on Binance Smart chain. The peculiar difference with other cryptocurrencies is to be found in the mechanism that has been devised to promote their growth. Token holders who decide to keep them are rewarded every time someone sells SafeMoon. The seller is in fact penalized by a 10% commission. Half of which is paid to those who continue to hold the token.
The cryptocurrency quickly gained momentum after its release and now many are taking an interest in its whereabouts. Pushed to do it by one squeeze arriving. What is it about?
What is squeeze?
By squeeze we mean a coordinated movement by a large group of investors, which they begin to sell a certain asset considering it overvalued or in any case now close to collapse, for reasons that can be of various kinds. A classic case of squeeze was the one that occurred at the beginning of the year on the shares of GameStop, which was struck by a long theory of sales by the big hedge funds.
Just what happened at that juncture, however, could now be replicated to the advantage of SafeMoon. A community movement has in fact formed led by the Reddit forum known as SatoshiStreetBets, the cryptographic version of the now famous WallStreetBets, which aims to take possession of the power currently held by the banks in order to return it to the people.
If this is the programmatic manifesto, the action of SatoshiStreetBets is next to converge on SafeMoon.
SafeMoon: What Could Happen Now?
After its appearance on the market, SafeMoon was the subject of heavy sarcasm from many. A judgment that, according to the group of redditors crypto it would be absolutely unmotivated and ungenerous. And to answer, they have put one in the pipeline massive buying campaign, such as to pull the project upwards. We are therefore in the presence of the classic pump and dump which allowed, for example, a Dogecoin to transform itself from a niche phenomenon into one of the most capitalized tokens ever.
It remains of course to understand whether this movement is destined for success or not. Over the past few hours, however, many have noticed the appearance of #safemoonsqueeze, a hashtag that basically invites you to react to the squeeze towards the token.
So something is already starting to move, also due to the technical rebound in progress. Those who intend to gain from this situation, however, must have the foresight to take a position at a time when SafeMoon's listing is still quite weak. As eloquently indicated by 23% of losses recorded in the last seven days.