Is SafeMoon actually safe?
From the history of the outstanding Bitcoin, new cryptocurrencies and tokens have been developed, which are betting on solving market absences so that they can offer new options that have not been supplied by their predecessors, all to provide a differentiator that is the reason for investors to put their capital by acquiring them. One of these new competitors is SafeMoon Coin, a cryptocurrency whose goal is to take its price "to the moon."
This recently created digital token has been developed for a new wave of investments where fair and constant dividends are offered, but it is still under the scrutiny of many analysts and specialists in the crypto world, who claim that it could be a pyramid scheme or a scam.
What is SafeMoon?
SafeMoon is a digital asset project launched on March 8, 2021, aiming to meet decentralized financial needs. Just like the most prominent cryptocurrencies such as Bitcoin, Ethereum or Dogecoin, SafeMoon's technology is also supported by the blockchain network, which functions as a large public ledger.
SafeMoon is also known as a DeFi token, a type of representation of a security or financial asset that works within the blockchain. SafeMoon's proposition, and why it is identified as a unique digital asset, is that it charges sellers a 10% fee. Of this, it redistributes half to other holders to encourage ownership and purchase.
SafeMoon's ambition is to correct two of the most outstanding problems in the cryptocurrency industry: extreme volatility and investors' bad habit of wanting to sell digital asset in a hurry. In this way, SafeMoon's management projects that such a 10% fee will succeed in preventing crypto holders from panicking and dumping their purchases quickly.
A brief history of safemoon
Safemoon is a newborn cryptocurrency that started trading in March 2021 and has appreciated the S&P 500 in the last decade. Safemoon peaked at $0.000013. Little is really known about the cryptocurrency creators, except that the team consists of 6 people. John Karony, CEO of safemoon and an analyst at the US Department of Defense, developed this cryptocurrency. Thomas Smith, collaborator in blockchain organizations and DeFI. And the rest of the team of which there is no information, Hank Wyatt, Jack Haines, Jacob Smith, and Charles Karony.
From the top, the safemoon token had a decrease of more than 60%. However, due to the appreciation of safemoon, this could actually be a bullish signal.
How much is 1 SafeMoon token worth?
Currently, the price of one SafeMoon is still fluctuating. Its highest peak was last April 20, when it reached US$0.00001194 with a trading volume of US$137.13 million in 24 hours. As of now it’s worth is 0.000004095
How many Safemoon coins are there?
To date, although SafeMoon's price fluctuation remains constant, the amount of SafeMoon coins in circulation is around 580,902,415,338,469.5, in which its liquidity score is up to 44.14.
How does SafeMoon work?
There are different positions and projects on how SafeMoon works in the financial market. However, using the Binance smart chain as a blockchain, the token has gained the attention of many investors thanks to the accelerated rise in its price appreciation.
According to the SafeMoon white paper, the protocol of this token works like this: at each market movement or trade, the transaction is taxed at a rate of 10%, which is reduced by half.
On the one hand, 5% of that commission is redistributed among all SafeMoon token holders at that time. The other 5% is again split in half, where 50% is sold for a contract on Binance Coin (BNB), and the remaining 50% is automatically matched with the BNB mentioned above and added to the PancakeSwap Exchange as a liquidity pair.
One of the negative details of SafeMoon is that it is not highly accessible like Dogecoin, for example, since, not being a legitimate cryptocurrency token in all scenarios, it is not supported by popular exchanges like Gemini or Coinbase.
What attracts investors to this cryptocurrency?
At the moment, SafeMoon's biggest attraction is its supposed ability to earn more money simply by accumulating investment. To ensure this, the cryptocurrency has a mechanism that charges 10% of all sales transactions.
Every time someone sells their assets on SafeMoon, half of the fee collected (5%) is redistributed to all investors, who can earn extra money. If you are looking for intelligent ways to make extra money, you need a little push. The rest goes into the liquidity fund. The mechanism, therefore, encourages investors to trade less and keep their wealth stagnant.
In the future, SafeMoon plans to launch an integration system with NFT and video games. According to the official website, this process began to be implemented in the second quarter of 2021, but more specific information was not disclosed. Another plan of the cryptocurrency creators is to create their exchange, which will have the same taxation mechanisms as SafeMoon, i.e., rewarding those who accumulate coins.
At the moment, they have launched a crowdfunding campaign to raise the necessary funds for the project. According to the project's whitepaper, the 10% sales tax was implemented to prevent the whale action from causing a sudden drop in the cryptocurrency's value.
How safe is it to invest in SafeMoon?
The factors above combined gave rise to rumors that SafeMoon was, in fact, a pyramid scheme. But, according to analyst Lou Bagel, the main factor behind this suspicion is the cryptocurrency's lack of significance at the moment: Doubts about Safemoon's functionality and security continue to grow, even as its price and capitalization have risen rapidly in recent days. Moreover, the falls it has also suffered create uncertainty about the path it will take.
Currently, the token has no real-world functions. However, it has been exposed on social networks like Twitter and other financial sites, so it is assumed that other Ethereum-based cryptocurrencies can achieve everything that SafeMoon pretends to do, but much better. According to the financial website elplanteo.com, SafeMoon works similarly to pyramid schemes where the first investors could earn a lot of money, while the last ones could lose everything.
The possibilities for people to achieve any considerable exchange through SafeMoon are currently minimal compared to the functions that many others have. However, convenience can come if the cryptocurrency manages to be versatile so that its price can be used in different markets.
The website confirms that it is not a good investment based on the Ponzi-like structure and the volatility of SafeMoon's price, although it is possible to make money with it.
"It seems to me that the developers are calm and with a 'let's launch something and decide where it goes next' attitude. Based on that, I get the impression that this is not a scam but an incomplete plan. They [the developers] don't seem to have answers to simple questions, which is a red light for anyone who wants to invest for the long term".
On the other hand, the WarOnRugs profile, famous for exposing cryptocurrency scams, claims SafeMoon fraud. The reason would be simple: the creator would own more than 50% of the tokens and could, in theory, release them to the market at any time.