SafeMoon Coin

SafeMoon Coin

Safety to the Moon
  • It has witnessed massive grown in user base after launch.
  • It relies on a proven Binance ecosystem.
  • The burning is done manually.
  • The 10% selling fee is meant for thwarting market manipulation and rewarding long-term users.
  • Not immune to sector volatility, as it has been seen.
  • Certain operating mechanism is not clearly described.
  • There is no real-world purpose behind it.
  • Not listed at the top crypto exchanges, yet.

Investing in the crypto sector has turned out to be a lucrative proposition for the millennial and tech-savvy lot. In fact, with time, people hailing from other segments are also showing interest in the industry and that includes the corporate executives and retired lot too! However, picking the right crypto coin ad exchange can prove to be more tedious than what you have thought! There are so many types of cryptocurrencies in the market and almost every fortnight, new ones are being launched. While veteran crypto investors and users prefer sticking to the old-time players like Bitcoin and Ethereum, it would be wrong to dismiss the new contenders totally. SafeMoon is among the newer crypto coins that have been gaining traction. 

The basics of SafeMoon

In 2021, a number of crypto coins have been launched and SafeMoon is among these contenders. It is basically a community-driven crypto project with a focus on decentralized financial systems. Even though it was launched in the first quarter of 2021, over 2.5 million users hold the currency. SafeMoon crypto developers have set focus on long-term goals over short-term gains. The holders get passive rewards and there is a penalty system to discourage selling. 

SafeMoon is a BEP-20 class token unveiled on the BSC Ecosystem. It relies on a proof-of-authority consensus mechanism. A 6 member team created the crypto coin and the CTO is Thomas Smith while the CEO is John Karony. Smith is known for his contributions to various companies in software engineering. The research and development VP, Henry “Hank” Wyatt, and Jacob Smith, SafeMoon’s web developer, have backgrounds in the game development sector. 

SafeMoon has 3 major functions- Burn, Reflection, LP Acquisition.

  • Reflection- It denotes Static rewards and aims to balance problems with mining rewards. It has a different working mechanism than typical mining rewards. The reward amount varies according to the volume being traded and that balances against selling pressure triggered by the early adopters who sell their assets. It resolves the issue that is faced by many Bitcoin users. 
  • LP Acquisition- The system has an automatic liquidity pool. It caters to the buyers and sellers and serves the purpose of a solid price floor.
  • Manual Burn- Most cryptocurrencies operate through a method called token burning and it erases a certain amount of tokens from circulation. Some crypto projects are known for making continual coin burns. SafeMoon deploys manual burn method. The burns are scheduled and tracked publicly-leading to enhanced transparency. There is nothing like prebuilt mechanisms for burn and the team will decide the timing, as per the whitepaper.

The coin sellers are charged a fee of 10%. Half of this fee is given to the existing coin holders. The remaining 5% is put in the liquidity pool. This is done for maintaining price stability. 

Some facts about SafeMoon worth your attention

Since SafeMoon is a very new crypto coin it is hard to say anything about its long-term prospects with finality. As of now, it is not associated with other activities than trading. As the wallet becomes more popular and sees more adoption, the price may surge upwards. The iOS version is newer compared to the Android one. It can be bought on exchanges like PancakeSwap and BitMart. However, the buying process is far from simple. 

What about authenticity and safety?

It is natural that you may feel concerned about assessing the credentials of a cryptocurrency project before investing your money into it. Instances of various cryptocurrency sector-related scams have made headlines. SafeMoon creators do have online profiles but certain details are not there. However, the fact is SafeMoon adheres to the BEP-20 token standard. It uses the PoA consensus mechanism where the block creators or validators are selected by Binance. They are also pre-approved. This establishes a sense of safety. 

Are there any glitches?

There are detractors who say that investing in SafeMoon is not very prudent given the fact it focuses solely on the future expectations of profits. Nearly all crypto coins get subjected to the uncertainty and volatility of the industry. That has happened to SafeMoon as well. The coin skyrocketed over 1,500% soon after its launch and declined by 8%% afterward. This high volatility makes it risky for serious crypto investors. 

Another thing worth thinking about is the uncertainty of some operating mechanisms. The whitepaper does not mention what sort of autonomy the team has for altering the capping of SafeMoon. The discretion of the team to burn the token may pave the way for supply and price manipulation.

While the Safemoon team has used video live streams to focus on the upcoming plans, the details are missing. The plans like creating a Safemoon exchange, launching a Safemoon wallet, and video game sound very nice but how and when these will be executed is yet to be clarified. There are hardly any details given on Project Pheonix.

Top Blockchain security firm Certik found in its audit that Safemoon token owners can acquire tokens from the liquidity pool. This gives them control over tokens meant as part of the fees. It was flagged as a security loophole. 

Should you invest in it?

It is hard to say how rewarding investing in SafeMoon will prove to be, right now. The cryptocurrency began its journey a few months back, to begin with. To a large extent, its success will depend on Binance and the team behind the project. The lack of any serious purpose may deter serious and long-term investors. You will have to face hardships for buying the token as well and the process is not what can be called straightforward! Criticism has also been leveled at this project for lack of details on upcoming plans and some operating procedures. So, it would be good if you invest it in small amounts and decide accordingly. 

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