Safemoon Crypto: Worth Investing Or Just Another Scam?

SafeMoon is a relatively new cryptocurrency that has gained serious attention, especially on social media platforms like Twitter and TikTok. It is a community-driven approach to decentralised financial systems. It was launched on the Binance Smart Chain (BSC) ecosystem on 8 March 2021 and quickly became Binance's third-largest token by market capitalization. It has three core components: reflection, LP acquisition, and burn. SafeMoon is designed to resist volatility by rewarding investors for holding their coins. However, it is not available on popular exchanges such as Coinbase or Robinhood, and there are concerns about its long-term viability and potential for price manipulation. So, is it a good investment?

Safemoon's price history

Soon after its launch, Safemoon saw a massive price jump to an all-time high of $0.00001399 on 20 April 2021, more than 1,560% higher than the previous week. However, the price dropped to $0.00001118 by the end of the day.

As of 23 September 2022, Safemoon's price was $0.00000005866. Its market cap was $330 million, and it ranked 216th in terms of market capitalization.

On 27 August 2024, the price of Safemoon was $0.00003226, with a 24-hour trading volume of $26,560.71. This represented a -0.10% price decline in the last 24 hours and a -2.20% price decline over seven days.

On 28 August 2024, the live Safemoon price was $0.00002, with a 24-hour trading volume of $45.86K. The price of Safemoon was up 0.87% since the last hour but down -30.93% since the previous day. The current market cap was $11.81 million, with a circulating supply of 556.62 billion coins and a maximum supply of 556.62 billion coins.

Safemoon's current value

As of August 2024, the current price of Safemoon is between $0.000000004985 and $0.00003226. The price of Safemoon has seen a decline in the last 24 hours and the last 7 days. The highest price paid for Safemoon was BTC0.077322 on January 5, 2022. The current market cap of Safemoon is $2.303 trillion.

The Safemoon Protocol is a decentralised finance (DeFi) token with three functions: Reflection, LP Acquisition, and Burn. The protocol is a combination of RFI tokenomics and an auto-liquidity generating protocol. The reward system of the token is based on static rewards, which are conditional on the volume of the token being traded. This system aims to incentivise long-term holding of the token. The automatic liquidity pool function creates a price floor for buyers and sellers, and the token burning function removes tokens from circulation to increase scarcity and value.

The Safemoon Protocol has been criticised for its centralisation, as it operates on the Binance Smart Chain, which uses proof-of-authority as its consensus mechanism. This means that block creators are pre-approved and chosen by Binance, giving the company absolute control over the blockchain.

Safemoon's market cap

Safemoon is a decentralised finance (DeFi) token that launched on 8 March 2021, with a supply of 777 trillion tokens. The current market cap of Safemoon is $2.303 trillion, with a price of $0.00003226 per token. This ranks it at #1045 on CoinGecko.

The market cap of a cryptocurrency is calculated by multiplying the current price of a token by its circulating supply. In the case of Safemoon, this is 560 billion tokens.

The market cap of Safemoon has changed over time. In September 2024, it was $2.9 billion, with a price of $0.000032256678516336694000000000000000 per token. In August 2022, the market cap was $330 million, with a price of $0.0000005866 per token.

The fully diluted valuation (FDV) of Safemoon is BTC285.1885. This is a statistical representation of the maximum market cap, assuming that the maximum supply of 1 trillion tokens is in circulation.

Safemoon's creators and developers

Safemoon LLC was created in March 2021 and the token was released the same month. The company was founded by a group of six, including CEO John Karony, CTO Thomas Smith, and Community Manager Trevor Church. The team also included Jacob Smith as web developer and Henry "Hank" Wyatt as VP of research and development.

The team has varying degrees of experience in web development, game development, and general management. Karony, for example, served as an analyst for the United States Department of Defense from 2015 to 2021. Smith has the most established work history of the group, with various software engineering roles at a number of companies. Wyatt is the only team member with a four-year degree.

The team has been criticised for having "little proof of previous success" and the token has been described as "the furthest thing from safe". In November 2023, the SEC and the DoJ charged Karony, Smith, and others with fraud, the unregistered offering of securities, and money laundering.

Safemoon's risks and benefits

Benefits

• Safemoon was designed to resist volatility by rewarding investors for holding their coins.
• The automatic liquidity pool creates a solid price floor for both buyers and sellers.
• The crypto developers have a long-term vision for the future success of the cryptocurrency.
• Holders earn passive rewards over time.
• The unusual feature of safemoon is the penalty for selling coins, which discourages selling and can drive the price up over time.
• The wallet has seen a lot of downloads, with over 100,000 Android users downloading it from Google Play by Oct 1, 2021.
• It is one of the first cryptos to implement redistribution tokenomics.
• It has a large community, with over 2.9 million holders by January 2022.

Risks

• Safemoon doesn't have much utility, and it's unclear if it will in the future.
• It is hard to discern whether the project is genuine or a scam.
• The team's ability to burn tokens at their discretion could allow for potential manipulation of supply and price.
• The centralization of the Binance Smart Chain means users need to trust and rely on Binance for security.
• The team behind Safemoon has little proof of previous success, and their credentials seem unclear.
• The price of Safemoon has been extremely volatile, skyrocketing by over 1,500% and then plunging.
• The tokenomics of Safemoon resemble a pyramid scheme, with those at the top making much more than those who buy in late.
• It is not available on popular exchanges such as Coinbase or Robinhood, which has put many investors off.

Frequently asked questions