The cryptocurrency market often has tokens inspired by successful projects that are created more for hype and speculation than for the field development and real utility. One of these is SafeMars.
So what is SafeMars? SafeMars is an altcoin launched on the Binance Smart Chain blockchain. The developers position it as an autonomous yield and liquidity generation protocol. A fee is charged for each transaction with this asset, which is sent to the liquidity pool and distributed among all holders.
Altcoin appeared in mid-2021, imitating its predecessor SafeMoon. The project was founded by an anonymous developer under the pseudonym The Martian. Kenneth Churchill is the CEO.
53.5% of issued tokens were burned, 40.5% were allocated to the pre-sale supply and 6% were blocked in team wallets. According to CoinMarketCap, the local maximum value was observed in May 2021 at $0.00000106, after which the quotes collapsed sharply. The next boom was $0.0000244 in October 2021. “Bulls” tried to change “bear” dynamics in the market more than once, but the price did not come close to its highs, and instead fell below the all-time low.
How does SafeMars work?
SafeMars is designed in a way that encourages it to be held for a long time. Its smart contract charges a 4% fee on each transaction. The fee is distributed as follows:
The project roadmap outlines plans to launch a decentralized app for staking, NFT staking and mining, and listing on major exchanges in 2021. However, nothing is known about the implementation of these plans in 2022. At the same time, the developers launched a mobile game to earn SafeMars tokens.
Is it worth investing in SafeMars?
SafeMars token has enough signs that show it's a pointless and risky investment.
Firstly, altcoin has a very low market cap which negatively affects its liquidity and it’s highly susceptible to market manipulation.
Secondly, SafeMars has no real utility and is only suitable for holding at the moment. Holders receive passive income from transaction fees, but there is little point in carrying out those very transactions.
Thirdly, the project does not have any advantageous differences from competitors. It doesn't offer its users anything new. Also it’s rather suspicious that most of the project developers remain anonymous and there is no roadmap.
With all this in mind, investing in this project is more of a gamble.
In addition, the token's price currently has no objective reasons for growth, it can only rise because of hype. The price is unlikely to reach the highs that it saw in 2021.
At the moment, the interest of traders in the token is at a very low level and most likely, the price will continue to fall. However, the situation can change in an unpredictable way at any time due to the low market cap.
