SafeMoon has been quite a controversial crypto project since inception, with many believing it’s a scam and going nowhere. However, the DeFi protocol leadership have turned things around rethinking and reimagining the project to bring value to its investors and the world at large. With a huge community (#SafeMoonArmy) behind this token, it may really become the dark horse. This article will help Crypto beginners understand this controversial token and inform as the case may be.
SafeMoon is one of the many projects being touted by crypto enthusiasts as a “get-rich-quick” asset. This has made it divisive among the industry, with some believing in its use case and others calling it a complete scam. However, it’s always best to do your own research.
In this post, we’ll break down SafeMoon and showcase some price predictions as well.
What is SafeMoon?
SafeMoon is a newer cryptocurrency, having launched just in March 2021. It runs on the Binance Smart Chain, making it a little less accessible than other digital assets like bitcoin or ethereum.
The project is a decentralized finance (DeFi) protocol that claims to be “community-driven.” This is because the development team says they’ve burned all tokens, meaning they’re in the same position as any other trader. If this is true, the developers have no advantage over anyone else.
SafeMoon aims to solve the “liquidity problem.” Essentially, liquidity providers like aave and compound bring in millions of dollars a day, with new users coming in all the time to try and farm tokens. SafeMoon discourages these users to do so thanks to a transaction tax, which we’ll explain later.
As of this writing, safemoon has launched a cryptocurrency wallet, and preparing to launch an NFT exchange and even a hardware wallet.
The network also hopes to integrate the token with games, as well as build a crypto educational app and even a charity drive. SafeMoon hopes to integrate with bigger exchanges such as Binance as well.
How does SafeMoon work?
Safemoon differs from other cryptocurrencies due to what happens after buying. Every transaction causes the network to do a “Reflection,” a “Liquidity Pool Acquisition,” and a “Burn.” Let’s break these down:
– Reflection
In crypto, “Reflection” means static rewards. In an attempt to remove the bursting liquidity bubble that comes with seemingly every new DeFi token nowadays, SafeMoon rewards holders with every transaction, based on trading volume. More specifically, every transaction comes with a 10% tax. 5% of that goes toward liquidity, and the other 5% is distributed to all SafeMoon holders. The idea is for holders to, well, keep holding, as it’s costly to sell or day trade the asset. Plus, as more users buy into the network, rewards will (ideally) increase, which would promote holding even more, and so on.
– Liquidity Pool Acquisition
As for the 5% that goes toward liquidity, the goal is to create price stability. To limit significant price shifts from whales selling and other scenarios, SafeMoon distributes liquidity across all exchanges that support the asset (which isn’t many as of now). In this case, half of that 5% fee goes toward the SafeMoon/binance coin (BNB) trading pair in the hope of creating said price floor.
Burn
Finally, there’s the burn. The remaining 5% undergoes a conversion into BNB, essentially removing the SafeMoon from circulation. This increases the asset’s rarity, pushing its price up as a result. Remember, these three steps happen with every single transaction. The team wants the token to act as a store of value more than an asset like litecoin, which is used for transactions. The token is more similar to gold in this respect. Put simply, the team claims SafeMoon is meant to be a profitable, long-term investment due to these factors.
Is SafeMoon worth buying?
Whether SafeMoon is worth buying is entirely up to you. The project is certainly very cheap right now for most people, though it can be a bit of a pain to access through its limited exchange listings, especially if you’re in the United States.
You’ll definitely want to research more of the project’s business model to justify whether to invest or not. Just keep in mind that this project is more of a long-term investment, with many future plans factoring into its success. Whether those workout or not is something else entirely.
Is SafeMoon on Binance?
Safemoon, while built on the Binance Smart Chain (BSC), is not available on Binance. The project’s website claims it is looking into a Binance listing, but as of this writing, it is not on the exchange.
Where to buy SafeMoon
According to CoinMarketCap, top exchanges for buying SafeMoon are BitForex, BlueHelix Exchange, and Gate.io, among others like Whitebit and BitMart.
How to buy SafeMoon
To buy SafeMoon, you have to know which exchanges it’s trading on. Current platforms are listed above. Here’s how to sign up for one of those exchanges:
- Create an account on your exchange of choice. It will also serve as your cryptocurrency wallet.
- Download the platform’s respective mobile application if it has one.
- Fund your wallet via the platform’s supported methods.
- Purchase the token on the exchange.
Know that signing up for most exchanges will likely require you pass a know-your-customer (KYC) and anti-money-laundering (AML) policy. This means you’ll probably have to verify an identity with the platform before you can invest.
Alternatively, you can acquire Binance’s token, BNB, log into PancakeSwap with a BSC compatible wallet, and purchase the token that way. Note that Binance also requires these KYC and AML policies.
Will SafeMoon get to $1 in 2022?
With the release of SFM V2, SafeMoon’s price increased significantly and its current all-time-high is $0.0031, which occurred on January 2nd 2022. although still significantly lower than a dollar, it has come a long way from its launch price in March 2021. Considering the cryptocurrency is a long-term investment based on its website and whitepaper, we should give this project time. Even then, it may take a few more years to hit $1 or more — if it ever will.
SafeMoon price predictions for 2022, 2025 and 2030
It’s critical to understand that the token’s potential price will vary greatly on its ability to deliver on its promises. Even then, it’s not a particularly unique token in most aspects. Sure, there’s the three-step reflection/burn process, but that’s dependent on people coming into the project — they’re not going to do that without a legitimate reason.
We must also note that some cryptocurrency experts and enthusiasts consider the project a scam.
On April 20, 2021, Twitter analyst Lark Davis claimed that safemoon is a ponzi scheme, going so far as comparing it to the infamous Bitconnect scam.
Cryptocurrency Price Prediction has a reserved look, claiming the price will peak in December of 2030. Keep in mind that with the release of SFM version 2, things started to look a lot better for investors but whether it will reach $1 hoped for by many is still up in the air and will likely depend on where the leadership decide to take this project. That said, all investments are speculative, so never invest money you can’t afford to lose.
SafeMoon’s rewards system could attract major attention
That’s about all there is to know about SafeMoon. Good luck trading crypto out there, and always be safe! It’s impossible to always make a profitable investment, but it is possible to make an educated one.
Disclaimer: The information provided on this page does not constitute investment advice, financial advice, trading advice, or any other sort of advice and it should not be treated as such. This content is the opinion of a third party and this site does not recommend that any specific cryptocurrency should be bought, sold, or held, or that any crypto investment should be made. Readers should do their own research and consult a professional financial advisor before making any investment decisions.
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