Everything You Need To Know About SafeMoon – What Lies Ahead?
What Is SafeMoon?
SafeMoon describes itself as decentralized finance (DeFi) token. It runs on the Binance Smart Chain blockchain, making it a little less accessible when compared to other digital assets like Bitcoin or Ethereum.
Known for its tremendous volatility, the cryptocurrency was designed in a way to encourage long-term investment and discourage people from selling the coin.
According to SafeMoon’s creators, half of the fees charged during transactions goes to a liquidity pool, in an effort to better maintain its price stability.
The price of the token soared reaching an all-time high of $0.000014 on April 20, shortly after its debut in March, according to CoinMarketCap.
SafeMoon is currently ranked 217th popular of all cryptocurrencies. The crypto gets its name from the phrase, “Safely To The Moon,” which means that the company’s ambition is to rise safely.
- High transaction fees of 10%, with 5% split among existing holders and 5% goes to the liquidity pool,
- The crypto already reached over 2 million users,
- Currently trading at $0.000001361 at press time.
With all the hype around the new coin, it is still valid to wonder if SafeMoon is safe or not. The whole point of creating this crypto is to attract investors and thus drive up the price.
Features and Advantages
The SafeMoon Protocol has three fundamental features that occur with each transaction.
- Reflection or static rewards approach aims to correct the problems of volatility by encouraging investors to hold onto their tokens.
- Liquidity Pool Acquisition creates a solid price floor for both buyers and sellers. By doing so, it can prevent larger dips when whales decide to sell their tokens later.
- Manual Burn is a process that permanently removes tokens from circulation. This process creates increased scarcity, thus raising the crypto price.
Data show that more than 400 trillion SafeMoon tokens have been burned so far.
On the Downside
On the flip side, SafeMoon has been subject to a number of disadvantages like its extreme volatility and lack of liquidity. Also, no major vendors accept SafeMoon as a payment method, and it is difficult to trade it for fiat currencies.
Above all, since these trading and cryptos are not regulated mostly, there is a high risk that there won’t be any protection if things go wrong.
The main concern spinning around investing in this crypto is that, like the value of stocks and shares, the price of a SafeMoon coin could fall. And, if investors were to sell at the dip, they would not only incur capital losses but also a 10% penalty.
SafeMoon’s design had produced a loyal group of early investors, but it has also opened the crypto up to criticism from industry experts and skeptics.
For instance, the crypto was referred to as a Ponzi scheme, pump and dump, an allegation that was denied by the company’s CEO. Few critics also worry about the manual coin burns which might reduce its circulation.
From the critics’ point of view, crypto appears to be an extremely high-risk speculative investment. For instance, a Twitter user that aims to expose crypto scams said in a Tweet,
“Owner owns more than 50% of the liquidity and refuses to fix it. He could pull LP and sell tokens, creating a rug pull [meaning an exit scam]. The likeliness of losing all funds: Absolute.”
Crypto analyst Lark Davis compared SafeMoon to BitConnect which ended up being a Ponzi.
Remember just because you make money off of a ponzi does not change the fact that it is a ponzi. #safemoon
— Lark Davis (@TheCryptoLark) April 21, 2021
From SafeMoon to SafeMoon V2
By upgrading, the crypto consolidated its tokens to a 1000:1 ratio. This means that V2 has upgraded contracts that have the capacity to change the coin’s consolidation formula.
Additionally, SafeMoon carries features such as increased security and accessibility. Many investors view SafeMoon V2 as the key to unlocking new all-time highs.
Price Predictions – What Lies Ahead
“I’ve been there from the beginning and trust the team, community and project,” a SafeMoon investor Besmir Zuta told FX Empire. “We are all optimistic that we will see a price increase in the near future.”
Like Besmir, a number of wallet investors gave a positive outlook. According to the price prediction website Wallet Investor, SafeMoon is expected to rise to $0.00179 by March 2022, $0.00254 in January 2023, 0.00335 in January 2024, and $0.00429 by January 2025.
With its V2 upgrade now live, the price of SafeMoon can reach anywhere between $0.0038 and $0.018 in 2022, according to Telegaon’s predictions. The average is likely going to be $0.0079, it noted.
It is, however, too early to predict what impact SafeMoon’s sale tax will have on potential investor appetite.