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SafeMoon is a newbie to the cryptocurrency market, noted for its significant volatility, ten percent transaction fees, and social media buzz.
SafeMoon, like other well-known crypto coins such as Bitcoin and Ether on the Ethereum blockchain, is based on distributed ledger technology and was launched on the Binance Smart Chain blockchain in March 2021.
SafeMoon was created with the goal of encouraging long-term investment, according to its developers.
In contrast to Dogecoin, Shiba Inu Coin, and a number of other cryptocurrencies that appeared to be either a joke or bogus on the surface, half of the ten percent charged during transactions is shared among long-term holders, and the other half goes to a liquidity pool that is intended to stabilize the price of SafeMoon.
However, SafeMoon appears to be seeking to bank off on Dogecoin's fame by investing in meme culture, much like the Akita Inu, Dogelon Mars, and other much lesser crypto breeds.
What Is SafeMoon and How Does It Work ?
SafeMoon is a cryptocurrency token that was created in early 2021 and is based on Binance's blockchain technology.
SafeMoon received celebrity endorsements from sports blogger David Portnoy, rapper Lil Yachty, and YouTuber Jake Paul throughout 2021. SafeMoon's value rose swiftly as a result of this, albeit it is now roughly 90% lower than it was at its height.
SafeMoon biggest distinguishing feature is that it charges a 10% fee if you sell the token. In other words, if you sold $1,000 worth of SafeMoon, you would be charged a $100 fee. This is in addition to any costs owed to a cryptocurrency exchange for processing the transaction.
"The SafeMoon developers claim that this is done to encourage long-term holding by discouraging selling while rewarding coin holders," explains Shaun Heng, vice president of growth and operations at CoinMarketCap, a cryptocurrency price tracking website.
SafeMoon divides the proceeds from all sales fees 50 percent to current token holders in a "reflection" distribution. The remaining half of the fee is invested in a liquidity pool that SafeMoon employs to keep prices stable.
Aside from being a store of value, SafeMoon has no other specific use case. It does not support automated contracts or decentralized apps in the same way as Ethereum does.
SafeMoon and SafeMoon V2 are two different types of SafeMoon.
SafeMoon released SafeMoon V2 in December 2021, which is an upgraded version of the token. The new token intends to consolidate the existing version at a 1 to 1000 ratio while lowering transaction costs dramatically.
People who have original SafeMoon tokens in crypto wallets will not automatically have their funds converted to V2. SafeMoon tokens must be manually transferred to the V2 platform by wallet holders.
It's simple to change your holdings to V2. Users of SafeMoon Wallet should simply update to the current version of the app and follow the instructions for consolidating their accounts. To consolidate any other form of crypto wallet, go to the SafeMoon Swap website.
There's no need to do anything if you have SafeMoon tokens on an exchange; the exchanges will handle the migration and notify you when it's finished.
The new transaction charge for SafeMoon V2 is 2 percent. 50% of the fee is distributed to current token holders, as it was in the original version. The remaining 50% is split between the SafeMoon liquidity pool and the SafeMoon ecosystem's managers.
What is the mechanism behind SafeMoon ?
SafeMoon has a market capitalization of roughly US$1.9 billion since its introduction on March 8, 2021, while Bitcoin has a market capitalization of about US$1.1 trillion.
Traders must pay a 10% fee, with half of the funds going to SafeMoon's present holders and the other half going to a liquidity pool (in an effort to better maintain price stability).
The designers of SafeMoon also reduce the amount of SafeMoon in circulation.
How much will SafeMoon be worth ?
Despite the fact that SafeMoon has fallen along with the rest of the market, there is still room for growth.
You should check out this SafeMoon price prediction if you're a cautious investor, as it covers the asset's price estimates.
SafeMoon price projection is more bullish. By 2023, we predict the asset will be worth $1, and by 2025, it will be worth $5. Several factors will have to come into play for this to happen.
The first is the cryptocurrency market itself. When large-cap coins like Bitcoin and Ether acquire value, it tends to trickle down to smaller ones like SafeMoon. For SafeMoon to succeed, the market will need to remain positive for an extended length of time.
The other consideration is SafeMoon itself. While meme currencies are prone to large price swings, this is mainly due to large communities.
Last November, SafeMoon had almost 2.8 million users, according to sources.
When compared to huge meme coins like Dogecoin, which had over 4 million on-chain holders as of August 2021 – just months after SafeMoon began – there is a significant difference.
To raise the coin's price, SafeMoon's developers will require a larger community of advocates and coin holders.
Is it safe to buy SafeMoon ?
SafeMoon, like all cryptocurrencies, is a highly speculative asset with no inherent value.
If you decide to acquire SafeMoon, you should be aware that you could lose your entire money.
Here are a few other dangers to think about.
Volatility: SafeMoon's price has been extraordinarily erratic since its launch, jumping more than 20,000 percent before plummeting more than 80 percent recently. Because cryptocurrencies have no intrinsic worth, your profit is determined by how much you can sell it for.
Regulation: Cryptocurrencies are relatively new, and governments are only now learning about them and their potential implications.
China reacted quickly, banning cryptocurrencies earlier this year due to the financial hazards they bring and the speculative trading they encourage. Higher tax rates on cryptocurrency gains might potentially be a form of regulation. Learn about basic tax rules for Bitcoin, Ethereum, and other cryptocurrencies in Bankrate's cryptocurrency taxation guide.
Speculative bubble: While bubbles are easier to spot in retrospect, there are indications that cryptocurrencies are currently experiencing a speculative frenzy. Instead of having an actual underlying purpose, the name SafeMoon appears to have been chosen to capitalize on the current craze by portraying an asset that is both safe and "going to the moon." Serious investors should be concerned about this.
Liquidity: For traders trying to get in and out of SafeMoon rapidly, the 10 percent fee discourages selling, which could make liquidity a difficulty. SafeMoon is also not traded on the major crypto exchanges, but rather on Pancake Swap, a platform that allows many cryptocurrencies to be traded.
Where can I buy SafeMoon crypto ?
There are certain challenges to purchasing SafeMoon, the most significant of which being that the only way to pay for SafeMoon purchases is with other cryptocurrencies.
Because it is not currently listed on any exchanges that take fiat currency, such as dollars, this is the case.
Another issue with SafeMoon is that major exchanges like CoinBase and Kraken do not offer SafeMoon trade. It's also not available on Robinhood or SoFi Invest, among other apps.
Use SafeMoon's patented SafeMoon Swap to exchange other cryptocurrencies, such as Binance Coin (BNB), for SafeMoon tokens.
SafeMoon is supported by a few additional crypto exchanges.
If you don't already have crypto, you'll almost certainly need to open an account on another exchange that allows you to convert dollars to coins, as several top crypto exchanges do.
After that, you'll need to withdraw the coins from the exchange, put them in a wallet, and then transfer them to a SafeMoon exchange.
SafeMoon is available for purchase at the following list.
'How can I buy SafeMoon coin?' you might be wondering.
'Where can I buy SafeMoon cryptocurrency?' or 'How can I buy SafeMoon cryptocurrency?' .
We've got you covered, so don't worry. The following is a list of the crypto platforms we looked at in this SafeMoon crypto guide:
eToro - Best Cryptocurrency Trading Platform Overall
Binance - is a cryptocurrency exchange that specializes on new coins. Coinbase – The Best Crypto Trading Crypto.com – The Fastest and Most Secure Exchange for Cryptocurrency
Kraken – Lowest price to invest in crypto compared to competitors
Can you buy SafeMoon on Coinbase ?
CoinMarketCap gives a list of purchasing possibilities for each cryptocurrency (also known as market pairs).
Search for SafeMoon V2 on CoinMarketCap. Near the price chart, press the "Market" button. This view displays a complete list of locations where SafeMoon V2 can be purchased, as well as the currencies that can be used to do so.
Under "Pairs," you'll see the SafeMoon V2 abbreviation, SFM, as well as a second currency. SafeMoon V2 can be purchased using the second currency. Look for SFM/USD if you want to buy SFM with the US Dollar. Go Here
Last Thoughts
SafeMoon crypto is a token rather than a coin. In 2021, it saw significant price increases in just a few months. In April and May, the price soared by tens of thousands of percent, only to lose most of those gains by August. In the crypto world, such volatility is far from uncommon.
If you believe that, despite the negative news, the best is yet to come for the SafeMoon cryptocurrency token (remember, cryptocurrencies are taxable), obtaining SafeMoon tokens is simple.
Download a wallet like MetaMask or Trust Wallet to buy SafeMoon, then either buy Binance tokens and swap them for SafeMoon, or buy SafeMoon directly on a centralized exchange like Binance.
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