Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche


Can SafePal (SFP) make money from Cryptocurrency Hardware Wallets?

Bizarrely, SafePal (SFP) is a cryptocurrency issued by a maker of cryptocurrency hardware wallets.

A cryptocurrency hardware wallet is a simple device that stores digital assets such as cryptocurrencies, stablecoins, synthentic investments, and nonfungible tokens (NFTS) or\r the keys you need to access blockchain access. The company’s principal product is the SafePal S1, a simple hardware wallet they intend for beginners.

SafePal also sells metal puzzles that keep such keys safe. They call this gizmo the SafePal Cypher. Note the Cypher is not a wallet because it does not store actual crypto. Instead, it stores codes for accessing crypto. Note I consider such devices bullshit because they don’t store the crypto. Instead, they store the crypto online. The cypher gives you to the codes to access the crypto.

In addition, SafePal sells a leather case for its hardware wallets. They also offer a SafePal App that allows people to store, buy, manage, swap and trade over 10,000 cryptocurrencies.

What is SafePal??

SafePal claims to serve over three million users in 196 countries. In addition, SafePal claims to be the first hardware wallet backed by Binance (BNB).

Interestingly, Binance made a strategic investment in SafePal in 2018. SafePal is now embedded in the Binance Exchange. Moreover, SafePal integrates with the Binance Smart Chain and supports BEP20 tokens. They build the BEP20 tokens to operate on both the Ethereum and Binance Smart Chain blockchains.

They claim SafePal supports 19 blockchains. Blockchains SafePal claims to support include Binance, Solana, Polygon, Ethereum, Ripple, DASH, Litecoin, NEO, QTUM, Stellar, THETA, Cardano, Fantom, Nervos, AAVE, Harmony, and Wallet Connect.

They claim SafePal also supports ERC721, ERC1155 and BSC NFT standard tokens. They claim SafePal’s app includes a cross-chain swap that supports tokens from 19 blockchains. SafePal launched a SafePal and NT Wallet Holder feature in 2021.

What Value Does SafePal Offer?

SafePal (SFP) is a utility token issued by SafePal. SafePal functions as the governance and utility token for the SafePal ecosystem.

Mr. Market assigns some value to SafePal (SFP). For example, CoinMarketCap estimates SafePal was the 8th most trending cryptocurrency on 8 February 2022. In contrast, SafePal was the 424h largest cyprotcurreny on 11 February 2022, CoinMarketCap estimates.

CoinMarketCap gave SafePal a Coin Price of 80.16₵, a Market Cap of $88.704 million, a Fully Diluted Market Cap of $400.793 million, and a 24-Hour Market Volume of $223.836 million on 11 February 2022. They based those numbers on a Circulating Supply of 108.167 million SFP, a Circulating Supply of 500 million SFP, and a Total Supply of 500 million SFP.

In contrast, CoinBase gave SafePal (SPF) a Coin Price of 80₵, Market Cap of $86.7 million and a 24-Hour Market Volume of $23.8 million on 11 February 2022. They base those numbers on a Circulating Supply of 108.2 million SFP.

How the Federal Reserve can boost SafePal

So, yes, SafePal already has impressive value. However, I think the true value at SafePal will come from Central Bank Digital Currencies.

To explain a Central Bank Digital Currency (CBDC) is a cryptocurrency, a Central Bank such as the Bank of England issues. Unlike cryptocurrencies, a CBDC is a digital version of a fiat currency such as the US Dollar. As far I know, here are no CBDCs in circulation but several Central Banks are working on them.

For example, the Federal Reserve bank of Boston and MIT’s Digital Initiative have a CBDC effort they call Project Hamilton. Yahoo! Finance claims Project Hamilton’s CBDC design can process over 100,000 transactions a second (TPS). Hence, I think Project Hamilton could be more scalable than any private cryptocurrency I have seen.

The Federal Reserve System (America’s central bank) is examining the possibility of creating a US CBDC. However, the Fed has made no decision on a CBDC. In contrast, the People’s Bank of China (PBOC) is testing its digital yuan CBDC in up to five million digital wallets, claims.

Are CBDCs the future of Hardware Wallets?

I think CBDCs such as the digital yuan could increase demand for devices such as the SafePal S1 because people will need a place to store the CBDCs. Hardware wallets could store the CBDCs because they will be cryptocurrencies. However, CBDCs will be centralized, while most cryptocurrencies are decentralized.

I believe there will be an enormous demand for some CBDCs, in particular a US digital dollar. People will want a digital dollar because it is the world’s reserve currency. The reserve currency is the fiat currency banks use for international transactions.

If CBDCs are widely adopted, there will be a mass market for hardware wallets because will want some place to store their digital money. In particular, people will want a hardware wallet they can carry in their purses or pockets, such as the SafePal S1.

If you are seeking a hardware wallet investment, SafePal (SPF) is worth investigating. I think SafePal has a product that could achieve a mass market when CBDCs arrive.