One of the most discussed cryptocurrencies in recent months is SafeMoon (SAFEMOON). It gained huge attention after many investors made huge profits overnight. SafeMoon recorded more than a 2,000,000% increase in less than two months, where early investors managed to make enormous profits with so little investment. However, the price of SAFEMOON has dropped ever since it reached its highest of all time in April at $0.00001. This fast-paced increase to an enormous height followed by a huge decrease made many people wonder if SafeMoon is a legit cryptocurrency or simply a pump-and-dump or a Ponzi scheme.
Despite the uncertainty around this cryptocurrency, we are going to look at what makes SafeMoon a potentially legitimate cryptocurrency. Perhaps SafeMoon is more serious than some investors perceive it to be.
Launched in March of 2021, SafeMoon aims to go “to the moon” safely with its features that attempt to resolve the volatility issues in the cryptocurrency market. The SAFEMOON tokens are BEP-20 tokens that operate in the Binance Smart Chain (BSC). The success of the latter has a huge correlation to SafeMoon’s success.
As a cryptocurrency involved in the Decentralized Finance (DeFi) sector, SafeMoon promotes a holding (HODLING) strategy for investors by employing a 10% tax fee for every SafeMoon trade. In this way, the network attempts to encourage investors to hold their SAFEMOON tokens rather than trade them and pay fees. As an incentive for investors to hold their tokens, half of this taxed amount is fairly distributed to SafeMoon holders. This rewarding method is known as the RFI Static rewards. As for the rest of the taxed amount, it is further divided into two distinct parts. The first part (2.5%) is staked in PancakeSwap, while the rest is sold into BNB.
Such taxes are some of the features that have made a name for SafeMoon among cryptocurrency communities since it makes SafeMoon unique. Furthermore, by rewarding SafeMoon holders, the network aims to grow its network even more and establish a good relationship with its community.
In terms of tokenomics, the developers have manually burned 223 trillion SAFEMOON tokens from the initial 1 quadrillion total supply. It is possible that more manual burns can be made in the total supply to promote a deflationary price for SafeMoon.
In the coming months, SafeMoon plans to release the SafeMoon app, the SafeMoon wallet, and also jump into the gaming industry within BSC. Despite these projects, SafeMoon also plans to have its own exchange, where DeFi services might be easily accessible for SafeMoon holders. Moreover, a bigger focus on other markets such as Africa can be imminent as they plan to increase their community.
At the moment things are looking bearish for SafeMoon since this cryptocurrency has lost major support levels and it seems that investors are on a selling spree.
Coinbureau a well-known crypto YouTuber has reacted on Twitter.
Whatever happened to Safemoon?
I sincerely hope all it’s investors are safely on the moon…
— Coin Bureau (guy.eth)🕵🏻 (@coinbureau) August 3, 2021
However, things may look bullish again for SafeMoon if buyers return around the $ 0.00000145 support level or before it.
Conclusion – Is SafeMoon Legit?
Judging on the cryptocurrency itself, its price patterns, and the fact that it is not easily accessible since it is not yet supported by major cryptocurrency exchanges, SafeMoon might be very questionable for a lot of investors. However, when looking at such projects that might come in the short run, SafeMoon looks more serious than others think.
Nevertheless, only time can tell if SafeMoon can prove its doubters wrong. Even though this cryptocurrency might look promising to many others, it is important that you trade carefully. Perhaps you might take advantage now as SafeMoon is still ranked at #209 in crypto rankings.
- SafeMoon is a cryptocurrency that managed to have a very large increase in a short matter of time. However, its price has dipped since then.
- As a cryptocurrency working in the Binance Smart Chain, SafeMoon’s success is largely dependent on BSC’s success.
- The 10% tax applied on transactions is what makes SafeMoon unique and potentially profitable for holders.
- Upcoming projects such as the SafeMoon app, wallet, and much more within BSC look to give SafeMoon a more serious look.
- While it is not largely supported yet, you might still invest carefully in SafeMoon. Perhaps it can be very lucrative in the long term.