Cryptocurrency minnow ‘SafeMoon‘ has been attracting fresh investors’ interest for the last few days. This, as a result, created a surge in its value in recent days.
Several people may have doubts about what exactly is SafeMoon? So we have penned down this article that will explain to you What is SafeMoon? (US-based crypto) and Is SafeMoon Legit or Scam?
Before delving deep into our topic, please note: purchasing cryptocurrencies and decentralized finance (DeFi) tokens, as well as stocks and shares, is a risky business.
Investing in crypto doesn’t offer an assured way to make money, so ensure that you know about the risks involved in this business and should only go if you can afford to lose the money.
Cryptocurrencies and decentralized finance tokens are highly volatile, so your money can go down as well as up in the blink of an eye.
Here’s what we know about SafeMoon.
What Is SafeMoon?
As it was introduced in the market just a few weeks before, little is known about the US-based SafeMoon.
Its website states that SafeMoon is not crypto but rather is a decentralized finance(DeFi) token. The website carries the slogan ‘Safely to the Moon’.
For people who don’t know What DeFi Is?;
DeFi refers to an alternative financial infrastructure that is built on top of the Ethereum blockchain. DeFi utilizes smart contracts to create protocols that mimic or replicate existing financial services in a more open, interoperable, and transparent approach.
While still a minnow by crypto standards, with each token priced at around USD 0.0000077 at the time of writing, the value of Safemoon has climbed steeply by over 1,000% since last Friday, giving it a market cap of about US$4.6bn and attracting fresh investors’ interest.
How Does SafeMoon Work?
SafeMoon said that it is emphasizing to solve the issues that afflict other cryptos on the market, specifically token price volatility and a tendency of traders to sell assets quickly and not hold them for a long term.
Unlike the other cryptos, SafeMoon declares that it will reward people who purchase its token and hold on to it instead of trading the assets quickly.
To discourage traders from selling assets quickly, SafeMoon said that it will charge sellers of its tokens a 10% transaction fee, half of which will then be redistributed to other token holders.
Even its Facebook page says: “Remember, getting to the moon takes time and the longer you hold the more tokens you pick up.”
How to Buy SafeMoon via PancakeSwap?
- Make Binance coin purchase($BNB)
- Create a Trust Wallet account and transfer your BNB into it.
- Swap your coins to BNB smart chain with the Trust Wallet app.
- Navigate to the DApps tab which you can find at the bottom, open up pancake swap, connect your Trust wallet, and then swap your Binance coins for SafeMoon.
- It is not officially on the PancakeSwap list, so enter the token (0x8076C74C5e3F5852037F31Ff0093Eeb8c8ADd8D3) or go directly here.
- Infrequently PancakeSwap will drop an error while swapping to SafeMoon, click the settings icon and set your slipping rate to 11% (or slightly higher if it doesn’t work).
- – Suppose, you make a $5k investment
- – And set 12% slippage on pancake conversion = $4400
- – When the Price doubles – you will have $8800
- – When you go to sell, SafeMoon you will be charged a 10% liquidity fee
- – Additional 10% pancake liquidity fee
- – The transaction won’t accomplish till you set the slippage to 12%
- – A 32% of total loss on exit
- – $8800 X 0.32 = $2816 exit fee
- – $8800 – $2816= $5984
- – While the price goes 2X, you receive less than 20% ROI!
Is SafeMoon Legit or Scam?
Well, they haven’t passed an audit yet. This signifies that a third party hasn’t yet evaluated that code (smart contract) to prove it does what they are claiming and on the other hand it doesn’t have any severe flaws or vulnerabilities till now.
So, at the moment we can’t fully assure whether SafeMoon is legit or a Ponzi scheme. However, we can tell you about 6 signs that show if SafeMoon a scam.
Is SafeMoon DeFi Token a Scam? (6 signs)
Wallet Distribution: It is said that more than 50% of the coins are owned by a few selected people. If this is true, it means that you are at the mercy of an elite few.
Liquidity Ownership: More than 50% of the liquidity is owned by a single owner with no safeguards preventing a said person from pulling the rug out from underneath every other holder.
Transparency: A community known for banning anyone who dares to oppose or asks any technical questions regarding how the coin is being handled or managed behind in the backend is instantly a red flag (should avoid).
Originality: Check whether a project is original and has an active community base. Having said that, in the case of SafeMoon, the whole community is made upon the framework of another coin and using the hype and hostility to promote their project.
Tokenomics: Due to the 5 % redistribution model, you directly are helping the rich get richer while the rest are left with only scraps. Another thing; not only this coin is not sustainable but also the selling and buying help developers make tons of money.
Faking Numbers: Several data drives and audits have shown ‘ghost wallets’ having been constantly sending few amounts of coin to falsely inflate the number of holders to give the project a deceitful thought of growth.
Is SafeMoon The New Dogecoin?
On Sunday, following Bitcoin’s biggest single-day drop in recent months, SafeMoon recorded a 99% rise.
Following the recent sudden increase in the value and low entry price, SafeMoon is being compared with fellow crypto minnow ‘Dogecoin‘. Back in 2013, Dogecoin was started just to poke fun at Bitcoin.
However, today Dogecoin is no joke, having exploded in value and achieved more than 5,000% in 2021. Amongst its boosters is Tesla CEO Elon Musk, who once called Dogecoin his favorite crypto. Musk likewise too named the crypto ‘Dogecoin’ as the “people’s crypto,” and also vowed to plant a physical Dogecoin token on the moon.
From its comparatively obscure origins, Dogecoin now has a market cap of about US$51.4Bn, making it the fifth most important crypto on the market.
Keeping this in mind, it could be debated that SafeMoon has more going for it than Dogecoin has, with the company behind the token planning to start its own exchange with the help of a US$1M fundraising, of which it states it has at the moment collected nearly USD 770,000.
While this token is yet to be known across the wider crypto investment sector, the company is planning to live up to its name and send its value ‘safely to the moon’ by the year-end, essentially with the development of several projects including the functionality for non-fungible tokens (NFTs).
But, as the token is currently lacking access to the mainstream market and status as an obscure entity, many are treading cautiously.
SafeMoon currently exists just on BitMart exchange, without a presence on well-known platforms such as Coinbase or Binance.
Hope you have understood what is SafeMoon? Comment down your opinions about Whether SafeMoon is Legal or SafeMoon a Ponzi Scheme?
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