Safemoon Investors: Who's In?

SafeMoon is a cryptocurrency that launched in March 2021. It was created by SafeMoon LLC, a cryptocurrency and blockchain company. By January 2022, the coin had more than 2.9 million holders, according to Utah Business. However, it is difficult to determine the exact number of people who are currently invested in SafeMoon. The company and the token have been involved in several controversies, including comparisons to a Ponzi scheme, allegations of fraud, and class-action lawsuits. Despite this, SafeMoon has a dedicated group of supporters who believe in the potential for high returns on their investments.

How many people invested in Safemoon in 2021?

The exact number of people who invested in Safemoon in 2021 is unclear, but it is estimated that by January 2022, the coin had more than 2.9 million holders.

Safemoon was launched on 8 March 2021, with a starting price of $0.0000000010 and a supply of 777 trillion SafeMoon tokens. The coin was promoted by celebrities such as musicians Lil' Yachty and Nick Carter, YouTuber Logan Paul, and social media influencer Ben Phillips. This, along with hype on social media, helped the coin's value increase by 23,225% between 14 March and 21 April 2021.

By April 2021, the token had reached an all-time high market cap of $17 billion. However, as of December 2022, its value had dropped by 98.7% to $223 million.

Some investors have shared their experiences with the coin, with one person commenting that they had spent all of 2021 buying Safemoon whenever they had the opportunity. Another investor commented that they had put in $800, which at one point was worth around $150,000 but is now just under $3,000.

Despite the hype and early success of the coin, some analysts have expressed concerns about Safemoon. Unlike some other cryptocurrencies, Safemoon doesn't have any real-world use, and there are concerns that it could be a pump-and-dump scheme.

How much money could have been made from a Safemoon investment at launch?

The number of people invested in Safemoon is unclear, but the crypto project had more than 2.9 million holders by January 2022, according to Utah Business.

Now, onto the question of how much money could have been made from a Safemoon investment at launch.

Safemoon launched on March 10, 2021, with a starting price of $0.0000000010 per token. The cryptocurrency was designed to encourage long-term holding, with a 10% fee charged on each sale. Half of this fee is redistributed to all Safemoon holders, and the other half is converted to Binance Coin (BNB), controlled by the coin's authors.

If you had invested $1,000 in Safemoon at launch, you would have received 1 trillion tokens. At its peak in April 2021, Safemoon reached a price of $0.00001399, which would have made your $1,000 investment worth $14 million. Even if you had missed the peak and sold at the closing price of $0.00001118 on the same day, your $1,000 would have been worth over $1.2 million.

However, it is important to note that very few people bought Safemoon at launch, and the price increased rapidly in the following weeks. For example, on March 12, 2021, just two days after launch, the price of Safemoon was $0.00000002, and $1,000 would have bought you 50 billion tokens. At the time of writing, Safemoon's price is $0.0000035, and your $1,000 investment from March 12 would be worth $175,000 after the 10% seller's fee.

While the potential for high returns is clear, it is important to remember that cryptocurrency investments are risky, and the majority of cryptocurrencies will fail or turn out to be scams. Safemoon, in particular, has been the subject of multiple controversies, fraud allegations, and class-action lawsuits.

What is the current value of Safemoon?

The current value of the cryptocurrency Safemoon is difficult to pinpoint exactly, as it is a volatile market with prices fluctuating constantly. However, as of June 27, 2024, the price of one Safemoon token was $0.00003211. This is a significant drop from its all-time high of $0.00001399 in April 2021.

The current market cap of Safemoon is around $2.414 trillion, placing it at #1058 in terms of market capitalization. This is a substantial decrease from its all-time high market cap of $17 billion in April 2021.

Safemoon's protocol is a combination of RFI tokenomics and an auto-liquidity-generating protocol. The token has three functions that occur during each trade: Reflection, LP Acquisition, and Burn. Token holders can earn up to an 80% APY, which is significantly higher than traditional interest accounts.

Safemoon's unique selling point is its focus on static rewards, which are designed to reward investors for holding their tokens and discourage selling. This is in contrast to traditional mining rewards, where early adopters tend to earn more rewards. By using static rewards, Safemoon aims to mitigate the problem of early adopters selling their tokens en masse.

Despite its innovative features, Safemoon has been the subject of controversy and legal issues. In November 2023, the SEC and the DoJ charged Safemoon and its executive team with fraud, the unregistered offering of securities, and money laundering. The company declared Chapter 7 bankruptcy and shut down shortly after.

In summary, while Safemoon offered an interesting approach to decentralised finance and static rewards, its value has decreased significantly since its launch, and it has faced serious legal troubles.

What are the risks of investing in Safemoon?

Safemoon is a cryptocurrency that launched in March 2021. It has since lost nearly all of its value, falling by 98-99% since its April 2021 peak.

Volatility

Safemoon's price has been extremely volatile, rising over 1,500% or 20,000% before tumbling by 99%. As with most cryptocurrencies, Safemoon has no underlying value, so your return depends on what someone else is willing to pay for it.

Regulation

Cryptocurrencies are a new asset class, and governments are still figuring out how to regulate them. In 2021, China banned cryptocurrencies due to the financial risks they pose and the speculative trading they encouraged. Other countries could follow suit, or introduce higher tax rates on cryptocurrency gains.

Speculative bubble

Some analysts believe that cryptocurrencies were part of a speculative bubble, and that Safemoon's name was chosen to capitalise on this by suggesting that it is both safe and will rapidly appreciate in value ("to the moon"). This should be a red flag to serious investors.

Liquidity

Safemoon discourages selling by charging a 10% fee on transactions, with half of this fee going to existing holders and the other half to a liquidity pool. This could make it challenging for traders who want to exit their positions quickly. Additionally, Safemoon doesn't trade on major crypto exchanges, and can only be bought and sold on Pancake Swap.

Pump and dump scheme

Some analysts and investors have accused Safemoon of being a pump and dump scheme, where early buyers encourage others to buy, and then sell their holdings for a profit, driving the price back down. Celebrity endorsements from musicians and social media personalities have fuelled this speculation.

Security concerns

Blockchain security firm CertiK found a "major issue" during an audit of Safemoon, as its owners have control over tokens created from the liquidity pool. This gives them significant influence over the price. In March 2023, hackers exploited a security flaw in Safemoon's smart contract, stealing $9 million worth of tokens.

Fraud allegations

In April 2022, an independent researcher who investigates crypto scams accused the Safemoon team of misappropriating millions of dollars from the liquidity pool. In November 2023, the SEC and the DoJ charged Safemoon's CEO, Token Founder, and former employee with conspiracies involving securities fraud, wire fraud, and money laundering. They allegedly misled investors about the accessibility of 'locked' liquidity and engaged in personal trading.

Lack of utility

Some analysts have pointed out that Safemoon doesn't actually do anything, and that its sole purpose seems to be to get people to buy it and drive the price up. While the project has plans to develop an NFT exchange and coin launchpad, these are not yet operational.

What is the general public sentiment towards Safemoon?

The general public sentiment towards SafeMoon is mixed, with some people expressing excitement and faith in the project, while others express regret, disappointment, and distrust.

Some people who invested in SafeMoon during its early days have expressed that they are still positive about the project, despite the recent challenges and controversies. They believe in the long-term potential of SafeMoon and are willing to hold on to their investments, hoping for a rebound in value.

On the other hand, many investors have shared stories of significant financial losses due to their investments in SafeMoon. Some individuals have lost thousands of dollars, and a few have even become homeless as a result of their investments. There is a sense of regret and disappointment among those who did not cash out their profits during the peak or who continued to buy during the dips.

Some people have compared SafeMoon to a Ponzi scheme or a pump-and-dump scheme, where early investors benefit at the expense of later investors. The token's design, which includes a 10% fee on sales and rewards for holding, has been criticised as encouraging people to hold onto their tokens, potentially driving up the price. This has led to accusations that the project is designed to benefit early investors and promoters at the expense of later investors.

Additionally, SafeMoon has been criticised for its lack of real-world use cases and vague future plans. The company's website mentions projects such as a non-fungible token exchange, a wallet, video games, and "integrating SafeMoon with African markets," but these initiatives have not yet materialised, and there is scepticism about their potential impact.

In conclusion, the public sentiment towards SafeMoon appears to be divided. While some investors remain optimistic and committed to the project, others have experienced significant losses and feel disappointed and misled. The controversies and fraud allegations surrounding SafeMoon have contributed to a sense of distrust and scepticism among some members of the public.

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