Learn how to buy SafeMoon Crypto.
SafeMoon was created to reward long-term owners and charge the sellers a 10% commission, and a portion of that fee is returned to holders who already have it. 1 First, it was launched via the Build and Build (BNB) chain in March 2021. SafeMoon is now available through exchanges like Pancakeswap.
While some might claim SafeMoon isn’t susceptible to manipulation, many point out the extreme volatility and drop of its price in 2022 as an unusual trading behaviour. Investors must conduct thorough research before making any investment decisions, particularly those that involve cryptocurrencies.
What Is SafeMoon?
Digital currencies are digital assets that are protected by cryptographic encryptions and powered by distributed ledger technology, also known as blockchain. Virtual currencies like Bitcoin, Ethereum, and other stablecoins serve as exchange mediums across the globe. It is difficult as thousands of them exist, but only a few are actually real. As a potential investor, you must investigate the authenticity and quality of a coin prior to jumping.
A certain distinct characteristic of SafeMoon is the static reward, whereby 50% of the tokens generated by the fee for transactions (usually 10 per cent) are distributed to token holders in addition to the manual burn in which the amount of SafeMoon tokens is reduced to raise the value and demand. SafeMoon also has an internal liquidity pool that allows tokens to be siphoned in the form of fees. They are later added to the pool for liquidity through Pancakeswap. 2
In the last year, several celebrities have invested in and endorsed SafeMoon. Some of them include social media guru Jake Paul, a skilful boxer, and a YouTube channel with more than 20 million subscribers. He has stated it is possible to invest in SafeMoon, which will make everyone rich in the future. Others are Brett Ratner and DJ Afrojack.
SafeMoon vs. SafeMoon V2
SafeMoon has launched its new version of the SafeMoon token at the end of December in 2021. 4 The updated token combines the previous version with the ratio 1:1000 and also ensures that transactions are less expensive.
If you own the original SafeMoon tokens in your wallet and wish to transfer the tokens to SafeMoon V2, this must be done by hand. The process to switch is simple.
SafeMoon customers with wallets can upgrade apps to their most recent version and follow the directions. Those with different types of wallets can go to SafeMoon Swap to exchange their tokens.
In addition, if you own your SafeMoon tokens in the exchange, you do not need to change them to V2 tokens. This is due to the exchange handling the process of migration, which provides an update regarding the status of the transition process.
In comparison to the first version, SafeMoon V2 processes transactions at a lower cost. The transaction fee in V2 is currently 2% of the total amount.
SafeMoon Fraud Allegations and Criticisms
It is vital to consider various accusations against SafeMoon during your investigation to determine if SafeMoon is the right choice for you.
In April 2022, Stephen “Coffeezilla” Findeisen accused the SafeMoon team of taking millions of dollars. Findeisen discovered evidence of SafeMoon’s liquidity account transfer of funds to a wallet dubbed”Gabe” or the “Gabe (6abe) wallet,” which transferred funds to a different company headed by John Karony. Thomas “Papa” Smith, the former SafeMoon CTO, has reacted to Findeisen’s allegations, saying that the funds were removed from the “locked liquidity pool” before Karony’s appointment. 7
In February 2022 in 2022, the first Class-action complaint in the name of SafeMoon was filed. The lawsuit alleged that the company was operating an illegal pump and dump. Jake Paul, Nick Carter, Soulja Boy, Lil Yachty as well as Ben Phillips were accused of selling the SafeMoon token using misleading information. Then, in May of 2022, several SafeMoon shareholders filed a class action suit for security fraud. The lawsuit was dismissed voluntarily in the month of November 2022. 8
As of December 20, 2021, SafeMoon came up with version 2 of its token, SafeMoon V2, and established a date to migrate its tokens in order to avoid paying a 100 per cent tax. They also created an exchange that was decentralized, dubbed “Safemoon Swap.” In April 2022, they launched their Safemoon card, which is a 2.5 per cent fee debit card to purchase products together with SafeMoon as well as other cryptocurrencies. However, the release of the card was delayed, which has led some experts to criticize the card. 9
Advantages and Disadvantages of SafeMoon
Pros of SafeMoon
SafeMoon, as with other cryptocurrencies, is based on decentralized blockchain technology. It is a decentralized blockchain, which means there is no central authority in charge of or overseeing the system. Decentralization could improve security and transparency as well as resistance to censorship since there is no one entity that has complete authority over the system. It is important to note that SafeMoon has faced criticism for manipulating the system since even decentralized currencies can be managed.
The transaction cost is paid to the liquidity pool. It is the smart contract that is reserved for the token. This pool of liquidity can deliver stability for the price of the token, making sure that funds can be traded during times that are volatile. The transaction fees that are given to existing token holders may encourage them to keep their tokens. Long-term holders will profit from a rise in token balances without the need to take part in the process of yield-farming or stake.
While the primary goal of SafeMoon isn’t specifically focused on yield-based farming, the tokenomics model may provide possibilities for its holders to generate passive revenue. Certain users may opt to take part in yield farming through the Decentralized Finance (DeFi) platform that works with SafeMoon or even stake their tokens into protocols that provide benefits.
Cons of SafeMoon
Although there are many benefits, there are numerous negatives to SafeMoon. The most obvious disadvantage for SafeMoon is the upcoming impression that the public will have of this cryptocurrency. The popularity of SafeMoon, as with other cryptocurrencies, relies heavily on the community’s sentiment. Since SafeMoon has had to contend with legal proceedings and accusations of fraud, it remains to be seen whether the cryptocurrency will see growth or a surge in adoption by users in the near future.
Cryptocurrencies, like SafeMoon, are well-known for their volatility in price. Prices can fluctuate rapidly and without warning, resulting in substantial gains for certain investors but significant losses for others. This was particularly evident in the lawsuit filed in 2022 in which SafeMoon was able to lose nearly all its value.
In addition to speculative trading and holding to secure potential price increases, SafeMoon has limited practical applications. Additionally, despite the fact that it’s been around for a few decades, SafeMoon is a relatively new venture compared to established cryptocurrencies, with unclear timelines and no proof of execution.
Smaller cryptocurrencies, such as SafeMoon, could also have limited liquidity in comparison to other tokens. Although it transmits charges to the liquidity pool, the limited liquidity may hinder users from making large transactions at the prices they want, which makes it feasible but not profitable to hold as an investment option at times.
Most importantly, SafeMoon remains a speculative investment that has no business model and is yet to see widespread adoption. In certain situations, SafeMoon may be seen as a “rug pull”, as numerous investors are likely to lose lots of money due to the legal implications of 2022. However, this isn’t to say that the future performance of SafeMoon could be the same; however, one disadvantage for SafeMoon can be the historical context of a variety of prices that have risen and caused losses.
How to Buy SafeMoon
With this knowledge, should you decide that SafeMoon is the kind of investment perfect for an investment portfolio, you can find a variety of crypto exchanges that allow you to purchase SafeMoon. They are platforms on which an array of different cryptocurrencies can be purchased or traded. However, it is important to understand that the majority of coins cannot be purchased with fiat money; however, they can be purchased with other coins. One of these coins is SafeMoon since it’s not listed on any exchange that will accept fiat currency.
Although SafeMoon isn’t listed via either the exchanges Coinbase or Binance central exchanges, it is possible to purchase the tokens on those exchanges using the steps below.
1. First, download the wallet. Then sign up
You can download the wallet onto your computer or browser extension or download it from mobile app stores, such as Google Play Store, Google Play Store or the Apple App Store. Once you’ve downloaded your wallet, you will need to create a secure account name.
2. Ensure you during your recuperation phase
After downloading the wallet and creating the username, a 12-word recovery word will be given to you to assure your safety; the recovery phrase is a crucial part of your crypto and will benefit you in keeping your wallet in the event that your device becomes damaged or lost. Keep in mind that you’re not supposed to disclose this phrase to anyone. Writing it down and keeping your copy in a secure place is the desirable option.
3. Verify the following to ensure there is satisfying Ethereum to pay for fees
The cost of a transaction varies depending on how popular the Ethereum network is, the speed at which you would like the transaction to be processed, and the magnitude of the deal. Ethereum network fees are also referred to as gas costs.
4. Purchase and then transfer Ethereum to the cryptocurrency wallet
If you’ve met the requirements for verification of your user, after you have completed the verification process, you will be able to transfer cash into your account and go on to purchase Ethereum coins with it. Following purchase, your Ether (ETH) coins are stored inside your Ethereum bank account.
5. Use the Ether (ETH) to buy SafeMoon
If you have ETH in your wallet, you can swap coins from ETH to SafeMoon directly. All you have been able to do is hit on the “swap” icon in the asset tab, select SafeMoon and then exchange your ETH for the amount of SafeMoon you wish to exchange.
How Does SafeMoon Work?
While there could be some controversy, SafeMoon works to encourage the long-term investment of its users and prevent selling by charging its users an annual fee of 10, which is split 50 per cent of the money going to existing SafeMoon customers. 14
How Do I Use SafeMoon?
SafeMoon can be used as an investment option, particularly if you are planning to make use of the reward and incentive program. In order to actually achieve this, make use of the SafeMoon Swap application that’s decentralized to the Build and Build chain and exchange BNB coins for SafeMoon tokens. Simply keep the tokens in order to qualify to earn rewards from transaction fees that are generated by the platform.
Is SafeMoon Safe?
It was launched in 2021. SafeMoon is still fairly new and quite volatile. It has very little trading volume and isn’t accepted on any exchanges that accept the use of fiat. 4 These are indications that the token could be unregulated. Therefore, it’s too early to determine if the token is secure or not.
The Bottom Line
SafeMoon is a relatively new cryptocurrency with unique tokenomics that includes the 10% transaction fee that distributes 5% to holders who are already holding it and also adds 5% to the pool of liquidity. Its goal is to promote an investment that lasts for a long time and also to assure price stability. However, it has faced many allegations of fraud. Investors are advised to conduct their own study before deciding to make a bet on SafeMoon.
