SafeMoon is a new cryptocurrency. It was launched in March 2021. However, the coin has already been making waves in the cryptocurrency market.
SafeMoon is a Decentralized Finance token. It applies a special protocol that is a combination of RFI tokenomics and an auto-liquidity generating pool. The project has quite ambitious plans such as developing an own exchange to swap NFT (non-fungible tokens) and run several charity projects and apps to educate the population about cryptocurrency. The project also intends to develop a coin launchpad, a tool that will
SafeMoon holders earn money on actually holding the tokens. The more coins a user has, the more they earn. Sometimes, the Annual Percentage Yield might reach 80% which is a lot compared to traditional savings accounts.
What Is So Special in SafeMoon?
It is expected that the SafeMoon protocol will gain value with time because of a special coin-burning strategy. Every time SafeMoon coins are sold, the seller pays a 10% fee from which a part is divided between other SafeMoon holders, and a part is burnt. So, now and then, the total number of existing SafeMoon coins is decreasing. The more coins are sold, the fewer coins are there in the market. It increases the coin scarcity which shall positively influence the SafeMoon price.
Is Investing in SafeMoon Risky?
Investing in cryptocurrency is regarded as risky in general. When it comes to new cryptocurrencies, and SafeMoon is one of the newest projects, the risks are even higher, it would be the same as if you decide to swap BNB to Shiba Inu. However, it is worth checking whether SafeMoon has some perspectives based on some common assessment criteria.
People behind the Project
For now, we cannot tell much about the team behind the project. The good thing is that they all are indicated on the website, and they are real. We mean those aren’t stock photos, and you can check the profiles of SafeMoon founders on social networks.
A not so good thing is that the SafeMoon founders aren’t known from their previous projects in cryptocurrency, blockchain, or similar.
The Project Utility
SafeMoon doesn’t have any utility. It doesn`t offer any solutions for real-world applications. As long as the hype around SafeMoon is on, the coins are bought and sold. As soon as people lose interest in it, the cryptocurrency will stop its existence.
Community
The SafeMoon community is strong. There are more than 2 mln coin holders, and the number is growing. The Reddit community consists of more than 250k members. These values are impressive and definitely are a positive sign.
Total Supply and Circulation
In the case of SafeMoon, the total supply is limited to one quadrillion coins. The trading volume per 24 hours is around 17,000,000 USD. The SafeMoon circulating supply is around 586,536,366,402,000 coins. The number of coins is decreasing with every sale, so the price is supposed to be more or less stable. However, for now, the coin hasn`t managed to cross the value of 1 cent.
Safety
Here, we have detected some details that shall be considered before you decide to invest in the coin. SafeMoon runs on the Binance Smart Chain. Binance is a centralized platform. So, it is free to implement any changes to its system. We never know what changes are coming and how they are going to influence the platform. It might be regarded as a serious issue by many investors.
Bottom Line
Investing in cryptocurrency is risky, especially if you are considering a completely new project such as SafeMoon. However, new cryptos can become extremely rewarding in the long term. Check the pros and cons, assess the risks involved, and make a wise decision.
