(Updated) Safemoon Crypto Review – 6 Things to know before Before Buying

Safemoon Crypto

This page discusses Safemoon crypto, one of the newest cryptocurrencies. You’ll learn about the coin’s history, its current value if it’s safe, and whether it’s a good investment. Is Safemoon crypto going to be one of the next big cryptos to blow out in 2021?

With over 10000 cryptocurrencies on the market today and more being introduced constantly, determining which ones to explore and invest in might be difficult. With their huge prices, popular coins like Bitcoin and Ethereum have taken the globe by storm. However, not all cryptocurrencies will succeed. Many will fail, and some will be outright scams.

Safemoon cryptocurrency is not a familiar name, but it has attracted investors seeking the next big altcoin. With the Safemoon crypto price remaining above $30,000 despite a China bank crackdown, many investors are looking for alternative cryptocurrencies with a lower price and perhaps higher returns.

November 29 update:  SafeMoon’s price increased 484 percent in a month, from $0.00000104 to $0.00000609. This remarkable ascent was met with depletion of purchasing pressure and profit-taking, resulting in a 52 percent retracement to retest the buy zone between $0.00000302 and $0.00000215.

Safemoon crypto unquestionably meets the lower pricing requirement. It is presently trading at fractions of a cent, which means that a few bucks can get you over a million SM crypto. Additionally, it has an intriguing hook in that it charges a fee to anyone who sells and distributes half of the money to its holders. This is intended to benefit long-term investors.

Despite its hype, Safemoon crypto has several severe problems that should make you reconsider purchasing. To assist you in making an informed decision, let us examine how this cryptocurrency works and why it is so dangerous.

What is Safemoon crypto?

Safemoon cryptocurrency is a March-launched cryptocurrency. The initial amount of tokens was one quadrillion, but the developers burned (destroyed) 223 trillion of them. Due to the fact that it is not listed on major cryptocurrency exchanges, the majority of buyers obtain it through the decentralized PancakeSwap exchange.

Safemoon crypto’s fundamental notion is a cost for selling it. You must pay a 10% charge if you sell it. The remaining 10% is allocated as follows:

  • 5% is transferred to current holders.
  • The remaining 5% is split evenly, with half converted to Binance Coin (BNB) and half staying Safemoon crypto tokens, which are then paired for usage in a liquidity pool.

According to the team and supporters, the Safemoon crypto price will incentivize people to continue with the project rather than feeling compelled to sell. However, a security platform called CertiK discovered what it characterized as a significant problem here. The liquidity pool tokens generated by the Safemoon-BNB pool will be acquired by an owner address. This confers ownership on tokens funded by SM crypto’s selling fee.

Additionally, Safemoon crypto developers burn tokens manually on a regular basis.

Each minute, the SafeMoon team removes approximately 142 million tokens from circulation. This equates to around 24 billion SAFEMOONs per day. So far as of November 2021, 42% of the total token supply has been burned. At this rate, SAFEMOON may encounter a supply shock in another year. SafeMoon’s burn alleviates selling pressure on the token’s price. As a result, the token’s value might rise more smoothly.

Additionally, the team issued a V2 update on their Twitter page. The SafeMoon burn process will continue where it left off in V1 with this upgrade. This V2 version includes a 1000:1 consolidation ratio, which means the overall supply will be 1 trillion, not one quadrillion. Additionally, if you have 1 billion SAFEMOON tokens in V1, you will have 1 million tokens in V2. Additionally, the SafeMoon team will publish a new roadmap focused on V2.

Version 2 update November 2021:

With the release of V2, Safemoon is poised to take things to the next level. The launch is highly anticipated by the investor community, who feel it will boost the tokens’ long-term prospects.

With the imminent release of V2, the most popular DeFi project is hoping for more adoption and use-cases. This breakthrough will allow Safemoon to expand its footprint in the crypto space and attract new investors.

Safemoon’s V2 debut would entail acquiring improved contracts with the capability of altering the coin’s consolidation formula. Consolidation, for the uninitiated, is a DeFi function referred to by Safemoon as reverse stock splits. The stock market generally permits corporations to conduct reverse stock splits since they benefit shareholders in the long run.

The Safemoon team believes that the same reverse stock splits in the form of consolidation will benefit the investor. Consolidation is simply a means to clean up the figures without affecting the investors’ ownership rights.

The Twitter account for Safemoon highlighted the impending features of their V2 upgrade. The message emphasized the development’s safety and security.

John Karony, CEO of Safemoon, stated his ambitions to adapt V2. “Adoption, expanded use cases (with v2), and an upcoming exchange listing.” Not to mention the listings on our swap. Are you considering making the switch to a stable coin? “Well, we’re going to put that up this week,” he explained.

Advantages and Disadvantages 

Pros

Brand Value

With over 13,000 crypto available and new ones emerging on a weekly basis, the most valuable aspect of this crypto is likely it’s branding at the moment. To differentiate themselves from the pack, top-performing crypto developed cult-like social media followings, and their brands spread like wildfire online as a result of viral memes.

Safemoon crypto has consistently trended on social media since its launch earlier this year. Without a clear technological advantage over Bitcoin (BTC), Ethereum (ETH), or other leading cryptos, Safemoon crypto’s long-term success may be contingent on the power of its brand.

Passive income

Safemoon crypto was created to reward long-term investing and penalize short-term trading. Any investor who sells incurs a vexing 10% cost. Half of this fee goes into a liquidity pool to help maintain price stability. The remaining half is allocated to existing Safemoon crypto holders. In this manner, investors in this crypto earn passive money whenever another investor sells.

When market conditions deteriorate and selling pressure increases, investors earn even more passive income as a reward for keeping. While these fees may not compensate for Safemoon crypto price losses during those periods, they do assist compound rewards if prices eventually recover.

Cons

Liquidity and volatility 

As with other meme altcoins like Shiba Coin, investing in Safemoon crypto is fraught with hazards due to its excessive volatility and lack of liquidity. For investors seeking an adrenaline rush or a gambler’s high when trading Safemoon crypto, the prospect of the crypto collapsing as dramatically as it has risen may be part of the fun.

However, because SM crypto charges fees to discourage selling and is not traded on major crypto exchanges such as Coinbase Global Inc. and Gemini, the Safemoon crypto market is far less liquid than the markets for other popular cryptocurrencies. Where to buy Safemoon crypto? Currently, the only two options to how to buy safemoon crypto are through Binance’s decentralized exchange PancakeSwap and their own wallet.

There is no utility

No big retailers accept Safemoon crypto as a payment mechanism and trading it for fiat currencies or other cryptocurrencies is much more difficult, as it is not traded on major centralized crypto exchanges. Safemoon crypto lacks a technological edge over other cryptos in terms of transaction speed, security, or other aspects.

It just introduced its own digital wallet on the iOS platform from Apple Inc. (AAPL). Additionally, the developers have lofty future ambitions, which include a unique exchange, an app, a video game, and the cryptic “Project Pheonix.” Regrettably, until investors are provided with additional specifics about these objectives, SafeMoon’s current status provides little or no real-world utility.

Confiscated ownership

Even Bitcoin (BTC) has been accused of being a Ponzi scheme, but detractors are particularly concerned about SafeMoon’s centralized ownership. According to reports, it’s CEO holds more than 50% of the coin’s liquidity. Insiders at SafeMoon are producing an enormous amount of passive money.

Additionally, some opponents draw comparisons between SafeMoon and Bitconnect, an infamous cryptocurrency that crashed amid fraud allegations. While there is no indication that SafeMoon is a scam, researchers have warned that many popular altcoins appear to be intended primarily to benefit inventors and early investors at the expense of subsequent customers.

How Does SM work?

Safemoon coin was created to help investors weather volatility by rewarding them for holding their currencies. It operates on three straightforward principles: reflection, LP acquisition, and burn.

Reflection

Static rewards, sometimes known as reflection, try to address some of the issues associated with mining pay-outs. It accomplishes this in two ways:

The award amount is conditional on the volume traded, which mitigates the impact of early adopters selling their tokens.

It incentivizes holders of the tokens to earn a higher rate of return depending on the overall number possessed.

This is in contrast to the usual mining incentives. For instance, early adopters of Bitcoin (and other tokens) got larger incentives for their mining efforts than latecomers, owing to the fact that the reward value declines over time.

This means that early adopters typically possess more cryptocurrency than new buyers. SM’s static reward structure aims to address the issue of early adopters bulk selling their tokens.

Acquisition of LPs 

The autonomous liquidity pool, according to the official white paper, is Safemoon crypto’s “secret sauce.” This function establishes a stable price floor for buyers and sellers alike.

The design is intended to be long-lasting. Safemoon crypto’s most interesting feature is the penalty for selling coins. The smart contract levies a ten per cent fee on each transaction. Existing holders receive 5% of the fee, which encourages investors not to sell their tokens.

According to the white paper on the project, the objective is to “avoid the greater dips that occur when whales opt to sell their tokens later in the game, hence reducing market volatility.”

Burning Manually 

The majority of crypto goes through a procedure called token burning, which removes tokens from circulation forever. This procedure aims to promote scarcity and, consequently value. From the start, several crypto initiatives conduct continuous coin burns.

Safemoon crypto, on the other hand, uses manual burns rather than continual burns. The premise is that this method can help long-term investors implement a favourable burn strategy. Additionally, it enables public announcement and tracking of burns, resulting in enhanced openness.

Proof of Authority

Binance’s Smart Chain is based on a consensus process known as proof of authority. In authority proofs, the block creators are referred to as validators. Binance has pre-approved and selected these validators. They must verify their true identities, invest money to demonstrate long-term commitment, and be on an equal footing with all other candidates in order to be authorized. As a result, proof of authority is by design reputation-based.

Proof of Work

Bitcoin employs a wholly unique consensus technique known as proof of work. Proof of work was the original consensus method employed by blockchains and has shown to be extremely successful at safeguarding a decentralized system against malicious actors.

Computers compete against one another to process and validate transactions in proof of work. The computer must answer tough mathematical puzzles in order to win this challenge. Once they’ve won, the computer updates the blockchain with a fresh block of transactions. These machines, dubbed miners, are compensated with Bitcoin for successfully completing a new block of transactions.

This technique is extremely energy-intensive but contributes to network security. A sufficient number of geographically spread miners results in a decentralized network without a central authority, which is diametrically opposed to the BSC’s operation. Bitcoin is now a widely dispersed and decentralized network with hundreds of thousands of nodes and miners located throughout the world.

Consider the following risks before purchasing Safemoon 

Safemoon crypto, like all cryptocurrencies, is a highly speculative asset with no inherent value. If you want to acquire it, you should be prepared to lose your entire money. Here are some more dangers to consider:

  • Safemoon crypto price has been extraordinarily erratic since its launch, jumping more than 20,000 per cent before plummeting more than 80 per cent recently . As of November, Safemoon is currently trading at $0.000003455, down 75% from its all-time high reached in Spring 2021.
  • The market capitalization currently stands at a solid $2 Billion USD, down from a peak of $6 Billion.Because cryptocurrencies have no intrinsic value, your return is contingent on the price at which you can sell them to another party.
  • Regulation: Crypto is relatively new, and governments are only beginning to grasp its nature and potential impact. China responded forcefully, banning cryptocurrencies earlier this year in reaction to the financial concerns they posed and the speculative trading they spawned. Additionally, regulation might take the shape of increased tax rates on cryptocurrency gains.
  • While bubbles are more visible in retrospect, there is evidence that cryptocurrencies are currently experiencing a speculative frenzy. The name SM crypto appears to have been created to cash in on the current craze by connoting an asset that is both secure and “going to the moon” rather than having a genuine underlying function. This should raise serious investors’ suspicions.
  • Liquidity: For traders trying to swiftly enter or exit Safemoon, the fact that they discourage selling via the 10% fee may be a hurdle. Additionally, SM crypto is not traded on major cryptocurrency exchanges, but is instead purchased and sold on Pancake Swap, a platform that allows for the exchanging of multiple cryptocurrencies. 

Key points you should know 

Perhaps you’re considering purchasing your own Safemoon crypto in order to avoid missing out on the next big thing. Before you proceed, there are a few points you should be aware of regarding this new cryptocurrency.

  1. Safemoon commenced operations with 777 trillion tokens

Safemoon crypto offers a vast supply at an affordable price. Although it began with one quadrillion tokens, the developers destroyed 223 trillion of them prior to debut.

As of November 2021, the market capitalization currently stands at a solid $2 Billion USD, down from a peak of $6 Billion.SAFEMOON coins have a circulating supply of 585,536,366,402,812 and a maximum supply of 1,000,000,000,000,000.

  1. There is a 10% commission on the sale 

The greatest distinguishing aspect of Safemoon is that sellers pay a 10% fee. Assume you own 100 million of it. If you sold them all, you would earn ten million dollars toward that charge.

Half of the price is allocated to all current Safemoon owners. The remaining half is allocated to a liquidity pool alongside SM and Binance Coin (BNB).

The 10% fee on all sales, according to SM’s white paper, is intended to reward long-term holders and steady the price.

  1. The developers burn Safemoon crypto tokens manually 

Manual burns are another integral feature of Safemoon crypto coin. This means that the Safemoon crypto team will burn tokens on a regular basis and limit the supply in order to increase the price.

Over 400 trillion SM crypto tokens have now been burned, not including the first 223 trillion burned prior to launch.

  1. The price increased by more than 20,000 per cent — and then returned to Earth 

SM rewarded early adopters handsomely. Its price reached an all-time high of $0.00001399. To put that in context, if you had invested $100 in Safemoon at launch, you would now own about $1.4 million in Safemoon.

SM’s price is currently down more than 75% from its all-time high. To be honest, the majority of cryptocurrencies have seen their prices fall in recent weeks. However, SM has lost more value than a number of larger coins, including Bitcoin and Ethereum.

  1. It lacks a practical purpose or competitive edge 

Many crypto fans are dubious of Safe moon crypto due to the fact that it lacks use cases and benefits over other cryptocurrencies.

SM has survived on popularity thus far, but this is not a sustainable model for long-term success. The Safe moon crypto that survive is those with a clear purpose or a competitive edge.

  1. SM crypto cannot be purchased with cash or through the largest crypto exchanges 

Safemoon crypto is not currently available on any of the major cryptocurrency exchanges. Additionally, there is presently no exchange that allows you to purchase Safemoon using fiat currency, such as dollars.

SM was initially listed on PancakeSwap, a decentralized crypto market. You can trade Binance Coin for Safemoon and vice versa by connecting your crypto wallet to that site. Additionally, there are various different exchanges that allow you to exchange Tether for Safemoon.

While purchasing SM is not difficult if you’re ready to learn how, the process is not as simple as purchasing crypto through a large exchange.

Is Safemoon crypto a good investment?

At the time of writing, DigitalCoin’s Safemoon crypto price prediction indicated that the currency would average $0.0000074376 in 2022, rising to $0.0000086024 in 2023 and $0.0000125853 in 2025. By 2028, DigitalCoin predicted that safemoon’s price would average $0.0000182927, with a high of $0.0000205886.

In comparison, Price Prediction predicted that its price might reach its prior high later in the decade. It predicted that the price will average $0.00000665 in 2022, up from $0.00000462 in 2021, and then increase to $0.00001961 in 2025, eventually reaching $0.00012949 in 2030.

Coinpedia predicted that if it has an optimistic start to 2022, it will trade at $0.0000067, and if it has a bearish end to 2021, it will trade near $0.000003. If it continues to grow its user base throughout the year, it may trade as high as $0.0000089 by the end of next year or as low as $0.00000713 by the end of 2022. Coinpedia forecasted that the price would fluctuate between $0.00000957 and $0.0000192 in five years.

It’s critical to remember that the cryptocurrency markets are incredibly unpredictable, making it difficult to anticipate a coin’s price accurately in a few hours and even more difficult to provide long-term estimates. As such, experts can and do make incorrect predictions.

Before making any investment choice, we urge that you conduct your own research and evaluate the latest market trends, news, technical and fundamental analysis, and expert opinion. Additionally, you should never invest more money than you can afford to lose.

At Solutiontales we make it easy to understand the throes of cryptocurrencies, but our words should not be taken as a financial advice. Remember, a wise investor can make money in a bull or bear market when given the right data.