Safemoon coin: Why crypto investors should watch out!
When people hear the word “Safemoon coin,” they may think it’s a good cryptocurrency. It has the word “safe” after all, so it’s already telling you that it’s good! However, this crypto serves as an example as to why you should check your investments thoroughly.
First, let’s talk about this so-called “safe” crypto, especially its creators and plans. Then, we’ll go through other details, such as its price and market cap. More importantly, we’ll explain how you can spot good cryptos.
Despite the growing trend, many people still don’t understand how cryptocurrencies work. Unfortunately, that’s why they fall for scams and shams in the crypto space. Reading about Safemoon can help you identify good and bad crypto investments.
What is Safemoon (SAFEMOON)?
— SafeMoon (@safemoon) May 6, 2021
Safemoon is a new crypto coin that launched in March 2021. Yet, it gathered more than 1 million users. The Safemoon team is composed of these colorful people:
- CEO – John Karony “Capt. Hodl”
- CBO – Thomas Smith “Papa”
- CTO – Hank Wyatt
- COO – Jack Haines “Jack”
- Web developer – Jacob Smith “OG KingFox.”
- Executive assistant – Charles Karony “Charles.”
The Safemoon homepage greets you with a simple message:
“The Safemoon Protocol is a community-driven, fair-launched decentralized finance (DeFi) token. Three simple functions occur during each trade: Reflection, LP Acquisition, and Burn.”
This means the creators erased their Safemoon coins via manual burn. This makes sure they join the network just like everyone else. The idea is they won’t have that advantage over them.
The message also says that every trade goes into building a liquidity pool. This is a supply of coins for crypto exchanges. Each time someone buys a coin, they take it from the pool.
What’s more, people who own Safemoon bucks earn passive rewards. In other words, they gain money as the value goes up. Later, we’ll see why it’s a huge issue.
The Safemoon team also sets goals for itself this year. During Q2 2021, it will start crafting the NFT exchange, a crypto educational app, and a few video game integrations.
In the next quarter, Safemoon will start a charity project. Then, it will expand to other large exchanges and Africa. The team is quite ambitious, right?
Safemoon: Price, market cap, and more
According to the Safemoon token site, it has 2,496,401 holders. We said that its creators burned tokens. The total tokens burned right now are over 420 trillion Safemoon coins!
At the time of writing, the Safemoon price is $0.000002115. It’s market cap is $1,234,529,161.58. The circulating supply is also silly: 585,536,366,402,812 SAFEMOON!
As you can see, you could easily buy a million Safemoon bucks. The all-time high was on April 21 at 0.00001375. If you bought it at that price, you could have earned quite a bit!
Why Safemoon isn’t “safe.”
— SafeMoon (@safemoon) May 2, 2021
Look beyond the super low price and the plans for crypto educational apps. There are some issues with how Safemoon tokens work. First, let’s check the selling fee.
You have to pay a 10% fee if you sell your Safemoons. That amount is split evenly. The first half goes to existing holders. The other goes to a liquidity pool.
Safemoon’s native network is the Binance Smart Chain. That’s why the protocol turns half of the other 5% into Binance (BNB) coins. This lets people buy and sell BNB and SAFEMOON tokens.
Still, this doesn’t look good for this crypto. Others don’t require such a fee, even Bitcoin (BTC) and Ethereum (ETH). However, cryptocurrency exchanges may charge similar costs.
Second, Safemoon coins don’t seem to have any other purpose. You hold it and hope the value goes up. The Safemoon website for its whitepaper doesn’t explain other use-cases.
That’s a red flag for any investment, not just crypto. Assets are valuable for a reason. They have some purpose in the real world. For example, stocks allow companies to raise funds.
If you check crypto articles from Inquirer USA, you’ll see that it’s based on research. The writer reads the whitepapers then simplifies the contents for readers.
Whitepapers tell you what a cryptocurrency does and how it works. It often looks like a typical college thesis paper. And it should since it explains lots of systems that work with each other.
The Safemoon whitepaper doesn’t tell you about the coin’s other uses. If you sell, you have to pay. That doesn’t look like a good investment! You have to wait for profit.
How do I spot good cryptos?
- Research! – Learn all about a cryptocurrency before buying it. Cryptos usually have a website that contains details about them.
- Purpose – Unlike Safemoon coins, most cryptos have a use-case beyond just waiting for a long-term price increase. For example, Ethereum (ETH) is useful for creating smart contracts and decentralized applications (dapps).
- Recent projects or partnerships – it’s a good sign if well-known companies work with your chosen crypto. That means other people placed their trust in that coin. What’s more, that crypto has a good chance of gaining value.
- Ranking – If your chosen coin is in the CoinMarketCap top 10, that’s a good sign. That means it has a big market cap, showing growth potential and stability. Of course, that doesn’t mean all coins below the top 10 are bad. A lot of good coins started at the bottom!
- Other sources – Believe it or not, online forums and videos are a good source of insight. They share views about a coin that you might not see from mainstream sources. However, you should be careful when taking their advice.
Of course, you should also verify this article yourself. Check all the sources you can find. Perhaps you may find Safemoon tokens to be a good investment after all.
You may read the other crypto resources on Inquirer USA. More importantly, learn more about cryptocurrencies in general. Don’t invest in anything you don’t understand.
Learn more about Safemoon
How much is my Safemoon worth?
At the time of writing, the Safemoon price is $0.000002115. Note that crypto prices tend to change wildly. Please check other websites to see the latest price.
How do I get Safemoon coins?
You may buy Safemoons from crypto exchanges like Gate.io, Uniswap, and PancakeSwap. For more info, open this CoinMarketCap site for Safemoon.
Is Safemoon a good investment?
Safemoon doesn’t look like a good investment because it lacks use-cases. Also, you’re supposed to wait for it to grow in value. Please check Safemoon yourself to make sure.
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