Is Safemoon A Good Investment Domain_10

What Is SafeMoon and Is It a Expert Investment?

With over 21,000 cryptocurrencies available on the market place today and more getting added daily, it tin can exist tough to know which ones to research and invest in. Popular coins similar bitcoin and ethereum accept taken the world by storm, with massive valuations. Simply not all cryptocurrencies will be successful. Many will fail, and some are scams.

Read: Looking To Diversify In A Bear Market place? Consider These 6 Alternative Investments

This article explores one of the newer cryptocurrencies, safemoon. You’ll learn nearly the history of the money, how much it’s worth now, whether or not information technology’s prophylactic and if information technology’s a good investment. Will safemoon exist one of the next large cryptos to explode in 2022?

What Is SafeMoon?

Safemoon was one of the newer cryptocurrencies to hitting the market in 2021. This crypto project is a community-driven approach to decentralized financial systems. After the initial launch in the commencement quarter of 2021, the coin had more than than 2.9 meg holders by Jan 2022, according to Utah Business. CoinMarketCap reports there are over 562 trillion coins in circulation. The founders wanted a coin that would ensure “safety” gains and forestall the inevitability of bubbles.

Safemoon crypto developers have a long-term vision for the future success of the cryptocurrency. Holders earn passive rewards over fourth dimension, and penalties discourage selling.

Quick Stats:

• Current price: $0.0000005866
• Marketplace cap: $330 meg
• Market rank: 216

SafeMoon Features

Safemoon was designed to resist volatility past rewarding investors for holding their coins. It works with three elementary functions: Reflection, LP Conquering and Burn.

Reflection

Static rewards, known as reflection, attempt to correct the problems with mining rewards. It does so in 2 ways:

• The reward amount is conditional upon the volume being traded, which mitigates selling pressure acquired past early on adopters selling their coins.
• Information technology encourages those holding the tokens to collect higher payments based on the full number owned.

This static approach differs from traditional mining rewards. For example, with bitcoin and other tokens, early adopters earned more rewards for their mining efforts than latecomers because the reward value decreases over time.

That means early adopters generally take more crypto than new buyers. Safemoon’s static advantage approach attempts to mitigate the problem of early adopters selling their coins en masse.

LP Acquisition

According to the official white paper, the automatic liquidity pool is the “secret sauce” of safemoon. This role creates a solid toll floor for both buyers and sellers.

The pattern is for long-term stability. The unusual feature of safemoon is the penalization for selling coins. For every transaction, the smart contract charges a x% fee. Five per centum of the fee is carve up among existing holders, encouraging investors non to sell their tokens.

According to the project’s white paper, the goal is to “prevent the larger dips when whales decide to sell their tokens later in the game, which keeps the toll from fluctuating as much.”

Manual Burn

Most cryptocurrencies undergo a process called token burning, which permanently removes tokens from circulation. This process is an attempt to create increased scarcity, and thus value. Some crypto projects perform continual money burns from the kickoff.

All the same, safemoon employs manual burns instead of continuous burns. The argument is that this process can implement a beneficial burn strategy for long-term investors. Information technology also allows the burns to be announced and tracked publicly, leading to increased transparency.

How Much Is SafeMoon Worth?

Because safemoon is so new, there isn’t much historical data to become on. Currently, the price is $0.0000005866. Shortly subsequently it launched, it saw a massive price jump to an all-time high of $0.00001399 on Apr twenty, more 1,560% college than the previous calendar week. However, the cost dropped to $0.00001118 by closing that day.

The current full market value of safemoon is most $330 million, ranking information technology 216th in terms of market capitalization, co-ordinate to CoinMarketCap. Swell for a new cryptocurrency competing with more than than 21,000 other coins, but not necessarily a practiced investment, either.

Is It Safe?

With all the hype for a newer money, it’due south valid to wonder if it’s safe. Some analysts have concerns with safemoon. Unlike some other crypto projects, safemoon doesn’t actually do anything. Although the project plans to develop a not-fungible-token exchange and coin launchpad, for now, the entire purpose seems to exist to get people to buy it and bulldoze the cost upwardly.

It could see more than buyers if the wallet gains more widespread use. Although more than than 100,000 Android users had downloaded the wallet from Google Play by Oct. 1, 2021, co-ordinate to BSC News, it appears not to have reached 200,000 downloads as of Sept. 22, 2022, about a twelvemonth later. The iOS version went live on the App Store on Oct. 6, 2021 — and shot upwardly to #10 within 12 hours, SafeMoon announced in a tweet.

Some Analysts Think It’southward a Pump and Dump

As mentioned, the token is designed to discourage selling. That fact could bulldoze the price up over fourth dimension, benefiting the owners and early adopters. The hype and frenzy over crypto in social media are calculation fuel to the fire.

Some analysts even go so far as to say they believe it is a pump-and-dump scheme. That means that people who bought the money early will “pump” information technology up, encouraging others to buy. Then, they will sell or “dump” their coins into the unsuspecting crowd, which inevitably will bulldoze the price back down.

Those analysts aren’t lonely. A group of investors filed suit in February, alleging that safemoon used celebrity endorsements to promote misleading claims about the potential for investors to profit.

Where To Buy SafeMoon

As of Sept. 22, you can purchase safemoon seamlessly through the safemoon wallet, but you volition demand to buy bnb, or binance coin, then swap it for safemoon. Y’all can also purchase safemoon on a number of exchange platforms, including PancakeSwap and Bitrue. Here’s a wait at both options.

PancakeSwap

PancakeSwap is a decentralized substitution that lets you trade direct from your crypto wallet, which means you lot, not the exchange, are in consummate command over your crypto assets. Of class, that ways you are responsible for the safety and security of your wallet, and you won’t receive the benefits that some crypto exchanges offer. But, if y’all want 100% command of your crypto, information technology’due south not a bad option.

Ownership safemoon on PancakeSwap tin be disruptive because yous’ll have to purchase wrapped bnb outset and so catechumen it to safemoon, similar to ownership straight from the safemoon wallet.

Bitrue

Bitrue is a global crypto trading platform and commutation that lets you buy, trade and invest in over 700 cryptocurrencies, including safemoon. This exchange offers safemoon as part of a safemoon/tether pair, so you’ll purchase tether (usdt) first, and convert your tether to safemoon.

Is SafeMoon a Good Investment?

Given that safemoon doesn’t do annihilation and the merely future expectation of profits is that more people will continue to buy, it doesn’t seem like a good investment.

Following a brief spike in October 2021, the price dropped rapidly and has hovered near its current level since February. Because that that price is but a tiny fraction of a cent and the maximum supply is astronomical, it seems unlikely that safemoon will run across any serious gains short of successful use cases proving its utility.

Investing in cryptocurrencies tin can be extremely risky. Ever consult a professional advisor and never trade coin you can’t afford to lose.

Takeaway

In early 2021, safemoon’s price skyrocketed over i,500%, then plunged. At this point, it would seem similar a risk to invest in safemoon.

Daria Uhlig contributed to the reporting for this article.

Data is accurate as of Sept. 23, 2022, and is subject to change.

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• What Is Bitcoin? (BTC)
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• What Is Dogecoin? (DOGE)
• What Is Litecoin (LTC)
• What Is Polkadot? (DOT)
• What Is Ripple? (XRP)
• What Is Tether? (USDT)