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What Is SafeMoon?

Safemoon Crypto Logo
Safemoon Crypto Logo

The History Of Safemoon

Launched on March 8th, 2021, SafeMoon was created by six developers and is led by CEO, John Karony. Having worked as an All-source Analyst for the US Department of Defense, Karony decided to put his skills to the test to create SafeMoon along with a team of developers. 

The name ‘SafeMoon’ derives from the phrase ‘safely to the moon’. This was based on the assumption that the coin would not only rise, but rise safely. According to Bscscan, SafeMoon has more than 2.9 million holders. 

What Is SafeMoon?

SafeMoon is a relatively new cryptocurrency token (BEP20) that runs on the Binance Smart Chain. Although slightly less accessible than other digital assets such as Ethereum or Bitcoin, SafeMoon has gained quite a following since its launch in March. 

The token differs from other cryptocurrencies as users are charged a 10% fee when buying, selling or trading the token. This seems slightly counterproductive in the cryptoworld. Developers usually see increased usability by lowering such fees. However, SafeMoon follows the philosophy that the longer you hold onto tokens, the greater the reward.

This can also be seen as value investing which was brought to light by one of, if not the most successful investor of all time, Warren Buffet. The token was created to rectify issues with impermanent loss and promotes the idea of buying and holding onto tokens instead of relying on the price increasing. The high trading fees make this possible.

Using SafeMoon

Investing in SafeMoon means you are guaranteed a reward with every transaction. Let’s take a look at what happens after buying. 

Reflection 

Users are charged a 10% fee with any transaction and 5% of this is shared among SafeMoon holders. This is attractive to holders of the token and persuades them to keep holding onto funds as SafeMoon is costly to sell. An increase in users of SafeMoon should also mean an increase in these rewards.  

Liquidity Pool Acquisitions 

The other 5% of the transaction fee goes towards liquidity in the hope that this will stabilise the price. This percentage is distributed across exchanges that support SafeMoon. However, at this moment, SafeMoon is only supported by Binance. 

Token Burn

Half of the 5% that goes towards liquidity pools is converted to BNB (Binance Coin) which essentially removes the SafeMoon token from circulation. This increases the rarity of the asset and is likely to push up the price of a token. 

These 3 steps happen with every transaction and it is safe to say that SafeMoon is seen as more of a long term investment and a store of value.

SafeMoon Technology

SafeMoon is a decentralised finance (DeFi) token of the Binance Smart Chain (BSC) which runs parallel to the original Binance Chain. BSC is a blockchain that was developed by Binance and allows the function of smart contracts

Without getting too technical, smart contracts are needed for decentralised networks as a place to store data when transactions take place. Not only do they protect the blockchain from attacks; smart contracts also increase usability by speeding up transactions. 

The 3-step plan explained above sets SafeMoon apart from other tokens that are used as assets as opposed to long term investments. 

Is SafeMoon A Good Investment?

SafeMoon is relatively new to the world of cryptocurrency and is less than a year old. Therefore, it is hard to give a black and white answer. With barely any history at all, it is difficult to make assumptions. 

We do know that SafeMoon got off to a good start and gained some recognition when it reached its peak in April trading at $0.00001 which put it 2,000,000% above the initial trading value.

According to TheWistle.com, SafeMoon could reach a price of $0.00000251 by 2022. The current price for 1 SAFE token is $0.00000304. 

CryptoNewsz predicts that by 2025, SafeMoon could arrive at a price of $0.0000285.

These predictions may not seem drastic but it is worth remembering that SafeMoon is a token that is supposed to be a long term investment and the rewards are earned from holding onto it.

SafeMoon Spin-Offs

There are big plans in store for SafeMoon and the developers behind it want to make it more than just a token. Here are some of the future plans. 

Wallets

A soft wallet has already been developed and is available to purchase for users of SafeMoon. According to the SafeMoon website, users will soon be able to purchase a hard wallet. 

SafeMoon Exchange

One article revealed the plans for SafeMoon to develop its own exchange that would stand alone from Binance. This exchange will offer crypto-to-fiat exchanges for over 150 trading pairs. SafeMoon will then start to develop an NFT exchange for the trading of non-fungible tokens. 

Plans are also in line for SafeMoon to develop charity projects, video games and cryptocurrency educational apps. SafeMoon plans to open offices in the UK and Ireland and has ambitions to create links with African markets. 

These ambitious plans may persuade potential investors and if SafeMoon manages to make these plans a reality, your investment is likely to rocket. 

For more information, keep an eye on the SafeMoon Products page. 

Conclusion

SafeMoon is a decentralised finance token that is housed on the Binance Smart Chain that runs parallel to the Binance Chain.

Safemoon differs from other tokens with its high transaction fees and the process that comes after buying tokens. The token was developed with the philosophy that those who hold onto the coin the longest will reap the rewards. Therefore, buying SafeMoon tokens should be treated as a long-term investment. SafeMoon should be thought of as a token of value rather than an asset. 

Price predictions vary greatly and there is no way of knowing for sure what the future holds for SafeMoon. However, the future plans to turn the token into an empire are promising and may be a prediction of what’s to come.

References

What is SafeMoon and can the crypto newcomer reach the moon? (forkast.news)

John Karony – CEO – SafeMoon | LinkedIn

SafeMoon (SAFEMOON) Token Tracker | BscScan

Binance Smart Chain (BSC) Explained | A Beginner’s Guide | Finbold

Safemoon Review: Is it a Scam? This You NEED To Know!! (coinbureau.com)

Warren Buffett (forbes.com)

DeFi (Decentralized Finance) Definition and Why it Matters (investopedia.com)

SafeMoon Price Prediction: SafeMoon is expected to reach higher levels (thewistle.com)

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