SafeMoon is one of the newest and most rapidly rising altcoins, especially in the turbulent cryptocurrency market, where the value of several tokens rose by hundreds, if not thousands, of percent in 2021.
It was launched as a BEP20 currency on the Binance Smart Chain on March 8, 2021. Additionally, it is unique in the world of cryptocurrencies, where transaction costs are being reduced to encourage trading, since it charges sellers, penalising users who trade the token.
It’s unsurprising that the project has garnered so much attention, given the possibility of unlimited token production, a price that has risen thousands of percent in less than three months, and a novel way of rewarding investors.
It’s very likely that it piqued your interest, which is why you’ve arrived here. Continue reading if you’re contemplating adding SAFEMOON to your portfolio, and always be risk conservative.
SafeMoon Coin
SafeMoon is a Binance Smart Chain cryptocurrency. It was released fairly on March 8, 2021, with the creators burning all of their tokens and joining the community in the coin sale. SafeMoon’s system has attracted over 2.5 million users in the short time it has been operational, using more than 40% of the entire token supply.
SafeMoon was designed to solve the problem of transitory loss, and it also encourages users to purchase and keep their tokens rather than speculate on their value. This is accomplished via the imposition of a “tax” on all transactions involving the sale of Safemoon tokens.
Bitcoin and other cryptocurrencies have come under fire for straying from their stated purpose. Although bitcoin and other cryptocurrencies were established as an alternative to centralised fiat currencies controlled by central bankers, they have devolved into commodities, with traders, investors, and speculators seeing them as investments and tradable assets.
Ponzi Scheme Allegations
On the other hand, some opponents have dubbed SafeMoon a Ponzi scheme, a fraud, and a shitcoin. That is a severe charge, and we shall investigate it further in this article.
With the development of DeFi has come the issue of impermanence loss, and since few investors understand how impermanence loss occurs, many have fallen for the high-APY yield-farming trap. That is very understandable.
When we see an APY of 100% or more, the majority of us get greedy. Regrettably, greedy traders are eventually driven out by early investors, who collect their gains and contribute to the collapse of the value bubble.
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As a result of this dynamic, static rewards, sometimes referred to as reflection, are gaining popularity. The purpose of reflection is to solve the issue of transitory loss caused by yield farming.
Rewards
SafeMoon employs three basic actions in each transaction to prevent momentary loss and to improve the protocol’s performance. Static Rewards, Manual Token Burns, and Automatic Liquidity Pools are the three options.
The SafeMoon creators believe that by using static incentives, they may assist in resolving a variety of yield-farming issues. For one thing, since the reward amount is proportional to the token’s trading volume, early adopters selling tokens after farming the very high APYs reduces the token’s selling pressure.
Second, similar to how dividends work for shareholders, the method incentivizes users to keep their tokens in their possession, allowing them to acquire more tokens.
Tokenomics
At the outset, one quadrillion Safemoon coins were produced, of which the creators destroyed 223 trillion immediately. The remaining 777 trillion tokens were distributed to the community at a fair DxSale launch event. Since then, more tokens have been destroyed, bringing the total number of tokens in circulation to slightly more than 583 trillion on May 27, 2021.
The SafeMoon protocol is unusual in that it charges a 10% fee on each sale transaction, with the aim of encouraging users to keep their coins rather than sell them. The ten percent charge is divided into the following categories:
All current holders are subject to the 5% fee.
The 5% fee is divided 50/50, with half of the SAFEMOON tokens being sold into BNB through the contract and the other half being immediately paired with the aforementioned BNB and listed on Pancake Swap as a liquidity pair.
While SafeMoon’s token concept is intriguing in general, it is primarily designed to create excitement by rewarding hodlers and penalising sellers. At the present, the initiative offers no discernible economic benefit. As a result, the price is strongly affected by the community and the amount of attention the project is receiving in the cryptocurrency market at the moment.
Additionally, the SafeMoon development team is anonymous, relying only on the smart contract’s rules for legitimacy.
Numerous individuals think that this is a pump-and-dump operation. In other words, it is a currency in which whales manipulate the market in order to lure buyers to invest, only to liquidate their holdings later.
How to Buy SafeMoon?
If you want to continue purchasing SafeMoon, you may do so via one of the BSC-connected DEXs. PancakeSwap and Bakery Swap are two of them. If you’ve ever participated in yield farming, you’re already acquainted with the procedure, albeit it’s a little more complicated than just purchasing Bitcoin on Coinbase.
To summarise, you must first buy Binance Coin (BNB) and then deposit it into a wallet that supports Binance Coin (BSC). MetaMask and Trust Wallet are two of them. Once you’ve acquired BNB, go to the DEX and exchange it into SAFEMOON.
Safemoon Price Action
It exploded in value from less than $0.00000001 in March to $0.00001339 on April 20, 2021. During the following three days, it dropped to $0.000003767.
It rebounded and then fell to the $0.000003767 level once again, before bouncing and trading in a range of about $0.0000075 to $0.00001 for many weeks before falling again, finding support around the $0.0000035 level. It has now recovered to $0.0000047.
Bottom Line
SafeMoon has certainly made a few individuals very wealthy in its first months. This is alluring, but it is also the method through which all Ponzi schemes begin and develop.
When people hear about early adopters earning 500% or 5,000% returns on their investments, they invest their money in the plan. While a Ponzi scheme may continue to operate for years, it will ultimately fail.
SafeMoon has no use other than to collect money at the moment. And it works only if people stay enthusiastic and the token’s price continues to increase. You alone can choose if you can afford to accept that risk. Because you may wind yourself holding a bag of crappy coins.
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