There are numerous cryptocurrencies already in the crypto market today, and more keep adding. And with the overall boom of cryptocurrency, it requires are a lot of research before investing. Apart from the popular coins like Bitcoin, etc., which get massive valuations and drive the storm, many relatively smaller and newer currencies are in the market. Some are successful, and some are failures too.
Amidst this difficulty of finding the right currency for you to invest in, SafeMoon makes your choice easier. Let us see if SafeMoon will become one of the big cryptocurrencies in the near future?
What is SafeMoon (SAFEMOON)?
SafeMoon is a relatively new budding cryptocurrency that was launched in early 2021. The currency brings the community-driven approach to set up decentralized financial systems in the market.
SafeMoon has been designed to reduce the volatility of the crypto market, and it aims to reward longer-term investments and hence discourages the selling of coins through penalties.
As per CoinMarketCap, the circulation of SafeMoon coins is reported to be 585 trillion.
History of SafeMoon Price
Since the launch of the currency in April 2021, SafeMoon has increased from $0.0000000010 to a 1500% increase. Post this, the prices came down and hovered around the launch value since then.
How Does SafeMoon (SAFEMOON) Work?
Things to Consider Before Investing in SafeMoon
– Safemoon launched with 777 trillion tokens
SafeMoon was launched at a very low price with a large supply backing. The launch was done with about a quadrillion tokens. But one-fourth of the tokens were burned (Sold) by the developers even before launch.
– There’s a 10% fee for selling it
SafeMoon offers 10% fee on the seller. This way, sales money gets redistributed within existing owners. This 10% fee is in a way to reward the long-term coin holders.
– Manual burning of SafeMoon tokens by developers
Manual burn is when coin holders dispose of some of their tokens to limit the supply and increase the price of coins in the market.
– The price shot up by over 20,000% — and then fell back to Earth
Early buyers were rewarded extremely. The price of a coin, right after its launch, soon surged to the highest (1500% growth) but then plummeted. The coin value dropped more than 70%, higher than bigger coins such as Bitcoin and Ethereum.
– It doesn’t have a real-world purpose or competitive advantage
There are apprehensions about the longer term as it does not offer many applications. Therefore, no competitive edge and hence a hurdle in the growth of the currency.
– You can’t purchase Safemoon with cash or through the biggest crypto exchanges
SafeMoon is a new currency yet listed/available on popular crypto exchanges. Hence buying the coins via fiat money isn’t possible as of now. Some exchanges are allowed to buy SafeMoon in exchange for Bitcoin or Tether.
– Future plans for Safemoon may be more style than substance
The future plans shared through video livestreams on their website seem to be made to the currency. There are too many fancy plans with an immediate focus on none.
– It’s one of the riskiest cryptocurrency investments you can make
With a lot of criticism, SafeMoon is also called a Ponzi scheme. A scheme where money is pumped and dumped, a pyramid scheme, also being referred to as a cult. Also, there isn’t any legit usage but relying on popularity. Hence the investment in SafeMoon becomes riskier.
Future of SafeMoon Price
Various analysts of cryptocurrencies hold an optimistic view about the Safemoon price; you can check here. The price is predicted to rise to USD 0.000051 by WalletInvestor, and further rise is expected in coming years and up to USD 0.000237 in the next five years.
Another pricing analyst platform, Digital Coin, has estimated SafeMoon prices to touch USD 0.00000870 in the next year and about USD 0.00001690 over the next five years.
These remain just predictions. The history of the SafeMoon price journey ensures that this ride will be bumpy even in the future.
SafeMoon is one of those currencies which seems to be riding the popularity wave. With lesser to promise of value, it is more hyped and pushed in the market. The price track record has been the proof.
Even though some investors are optimistic about the currency, it is hard to substantiate that Safemoon would be a promising investment.