Safemoon Crypto: Worth The Investment Risk?

SafeMoon is a fast-growing cryptocurrency that has attracted a lot of attention from investors. It launched in March 2021 and has already seen significant increases in its value and trading volume. SafeMoon aims to address common issues in other cryptocurrencies, such as volatility, by penalizing sellers with a 10% transaction fee and rewarding holders with passive rewards. However, it has also been criticized for its similarities to a Ponzi scheme and its complex buying process. As with any investment, there are risks involved, and it is important for individuals to assess their risk tolerance before investing in SafeMoon or any other cryptocurrency.

SafeMoon's value and trajectory

SafeMoon is a decentralised finance (DeFi) token that combines reflection, LP acquisition, and burn mechanisms with tokenomics. It launched on 8 March 2021 with a value of $0.0000000010 and a supply of 777 trillion tokens.

SafeMoon's protocol taxes each transaction with a 10% fee, which is then divided in half. 5% is redistributed to all token holders, and the remaining 5% is split again, with half converted into another cryptocurrency, and the other half is automatically paired with the former and added as a liquidity pair. This mechanism incentivises holders to retain their tokens for longer.

SafeMoon's value has increased rapidly. In April 2021, it was valued at $0.00000007, and after a quiet month, it shot up more than 12,000% in value. This rapid increase is attractive to investors, and its trading volume has been on the rise.

SafeMoon's future plans include the development of a non-fungible token (NFT) exchange, crypto educational apps, and charity projects. It also seeks to expand its ecosystem to include a coin launchpad, enabling users to create their own cryptocurrencies.

SafeMoon's protocol will gain value over time through its coin-burning strategy, making it a deflationary digital currency. Its supply is decreasing, following the Bitcoin model, which has a supply limit of 21 million.

SafeMoon's price has increased by 100% in the past 24 hours, and by 8.6% in the past week. However, it is still in the speculative stage, and its rapid value increases and decreases are unpredictable.

The pros and cons of investing in SafeMoon

Pro: Passive income

SafeMoon was designed to incentivise long-term investing and discourage selling. A 10% fee is charged on every SafeMoon transaction, 5% of which is redistributed to SafeMoon holders, and the other 5% is added to a liquidity pool to support price stability. SafeMoon investors generate passive income every time another investor sells.

Con: Illiquidity and volatility

SafeMoon is extremely volatile, and its market is far less liquid than other popular cryptocurrencies. It charges fees to discourage selling and is not traded on leading crypto exchanges such as Coinbase and Gemini.

Pro: High-profile influencers

SafeMoon has been endorsed by high-profile celebrities like Dave Portnoy and Jake Paul, which has helped it gain massive popularity.

Con: Centralised ownership

SafeMoon's CEO reportedly owns more than 50% of the coin's liquidity, which has led to concerns about centralised ownership. Some critics see parallels between SafeMoon and Bitconnect, a notorious cryptocurrency that collapsed amid accusations of fraud.

Pro: Inexpensive

SafeMoon is inexpensive, which may be an advantage for new investors. Interested buyers who are unsure about its legitimacy can invest small values.

Con: No utility

No major vendors accept SafeMoon as a payment method, and it is difficult to trade it for fiat currencies or other cryptocurrencies. SafeMoon does not have a technological advantage over other cryptos in transaction speed, security or other features.

How to buy SafeMoon

SafeMoon is a relatively new cryptocurrency that launched in March 2021. It is a token that operates on the Binance Smart Chain (BSC). SafeMoon is designed to reward long-term holders and charges sellers a 10% fee, with half of that fee going back to existing holders and the other half being 'burned' or removed from circulation. This fee structure aims to discourage short-term selling and promote price stability.

SafeMoon has gained popularity due to its viral marketing and community-driven approach, attracting a large number of investors and enthusiasts. However, critics argue that the project lacks transparency and real-world utility, and there are concerns about the sustainability of its tokenomics model. As with any cryptocurrency investment, potential investors should exercise caution, conduct thorough research, and be aware of the risks involved.

Create a Wallet:

You will need a wallet that supports the Binance Smart Chain (BSC). MetaMask and Trust Wallet are two popular options that offer browser extensions and mobile apps. Download and install your chosen wallet.

Secure Your Recovery Phrase:

When setting up your wallet, you will be given a recovery phrase or seed phrase, which usually consists of 12 random words. This phrase is crucial for accessing your crypto if you lose or damage your device. Keep it safe and do not share it with anyone. It is recommended to write it down and store it securely.

Buy Binance Coins (BNB):

Before you can purchase SafeMoon, you need to acquire Binance Coins (BNB). You can buy BNB on a cryptocurrency exchange like Binance or PancakeSwap. You may need to fund your account with a minimum amount, such as $10 on Binance, to complete the purchase.

Transfer BNB to Your Wallet:

Once you have purchased BNB, transfer them to your wallet. This process may vary depending on the wallet and exchange you are using, but it typically involves copying your wallet address and pasting it into the withdrawal section of the exchange.

Connect to a Decentralized Exchange (DEX):

SafeMoon is available on several DEXs, including PancakeSwap, BitMart, WhiteBit, and Bakery Swap. Connect your wallet to the DEX of your choice.

Swap BNB for SafeMoon:

On the DEX, find the trading pair for SafeMoon and BNB. Specify the amount of BNB you want to swap, ensuring you have enough to cover transaction fees. Review the details, and if everything looks correct, confirm the swap.

Store Your SafeMoon in a Secure Wallet:

After purchasing SafeMoon, it is essential to store your tokens securely. You can use the same wallet you created in step 1 or transfer your SafeMoon to a dedicated SafeMoon wallet if available. Ensure you keep your private keys secure and consider enabling additional security measures, such as two-factor authentication.

Please note that the process of buying SafeMoon may vary slightly depending on your chosen wallet, exchange, and DEX. Always refer to the specific instructions provided by the platforms you are using. Additionally, remember that investing in cryptocurrencies carries significant risks, including high volatility and the potential for losses. Conduct your own research and invest only what you can afford to lose.

SafeMoon vs Dogecoin

SafeMoon and Dogecoin are two cryptocurrencies that have both experienced surges in value. Dogecoin has been around since 2013 and has the backing of celebrities like Elon Musk and Snoop Dogg. SafeMoon, on the other hand, is a more recent addition to the crypto market, having launched in March 2021.

Dogecoin and SafeMoon have both hit all-time highs, but their trajectories have differed. Dogecoin reached an all-time high of $0.43 on April 16, 2021, four days before the Doge Day hoopla. On Doge Day, the "Doge Army" attempted to push the price of Dogecoin to $0.69 or $1 but failed to do so. SafeMoon, on the other hand, reached an all-time high of $0.000014 on Doge Day, surpassing Dogecoin's peak.

Since their all-time highs, both Dogecoin and SafeMoon have experienced declines in value. Dogecoin has declined by 41.19% from its all-time high, while SafeMoon has seen a more significant drop of 52.78%. At the time of writing, Dogecoin was trading at $0.26, while SafeMoon was trading at $0.0000066.

One key difference between SafeMoon and Dogecoin is their market position and perception. Dogecoin has gained mainstream attention and support, while SafeMoon is a newer entrant to the market. SafeMoon has also faced criticism and concerns from analysts and influencers, with some warning investors about the project and associating it with a Ponzi scheme.

In terms of functionality, SafeMoon is designed to encourage people to hold onto their tokens and resist volatility. It does this by imposing a 10% sales tax on anyone who sells a SafeMoon token, with 40% of the taxed money redistributed to those still holding the token, 30% going to the SafeMoon system's liquidity pool, 20% burned, and 10% sent to a growth fund. This unique fee structure is intended to reward holders and stabilise the price of SafeMoon.

Dogecoin, on the other hand, does not have such a fee structure. It has gained popularity and support due to its long-standing presence in the crypto market and the backing of influential figures.

In summary, SafeMoon and Dogecoin have both experienced volatile price movements, with SafeMoon reaching a higher peak but both suffering significant declines. SafeMoon is a newer cryptocurrency with a unique fee structure designed to encourage holding, while Dogecoin has gained mainstream attention and support. The decision to invest in either of these cryptocurrencies depends on various factors, including risk tolerance, investment strategy, and market conditions. It is essential to carefully research and understand the risks associated with investing in cryptocurrencies before making any investment decisions.

SafeMoon's legitimacy

SafeMoon is a BEP-20 token launched on the Binance Smart Chain (BSC) ecosystem on 8 March 2021. It is one of the newest and fastest-growing cryptocurrencies, with over 1 million users.

SafeMoon has three core components:

• A fee charged on transactions that is distributed among holders of the token.
• A fee charged on transactions that is given to various liquidity pools on Pancake Swap and other platforms.
• A token burn that occurs on each trade.

SafeMoon is built on the Binance Smart Chain, which uses proof-of-authority as its consensus mechanism. In this model, Binance has absolute control over the blockchain and users must trust and rely on Binance for security.

SafeMoon has been the subject of several controversies, including comparisons to a Ponzi scheme, not delivering on products, facing multiple class-action lawsuits, and fraud allegations. In November 2023, the SEC and the DoJ charged SafeMoon and its executive team with fraud, the unregistered offering of securities, and money laundering.

SafeMoon LLC declared bankruptcy and shut down in December 2023. The VGX Foundation has since acquired SafeMoon, and is working to upgrade and restore the applications to full functionality.

The legitimacy of SafeMoon is questionable, given the controversies and legal issues surrounding the company and its executives. While it is a fast-growing cryptocurrency, potential investors should carefully consider the risks before deciding to invest.

Frequently asked questions