SafeMoon is a cryptocurrency that rewards long-term holders by charging a fee on transactions and giving a share of it to people who keep their coins. It is started as a meme coin but has gained popularity due to its unique features.
SafeMoon, a relatively new cryptocurrency, has gained significant attention due to its unique tokenomics and community-driven approach. This crypto was created to reward long-term holders by charging sellers a 10% fee, with part of that fee going back to existing holders. Launched on the Binance Smart Chain (BNB) in March 2021, It can now be bought on exchanges like PancakeSwap. While some believe It is resistant to manipulation, others point to its big price drops in 2022 as unusual. If traders are intrigued by the potential of SafeMoon and want to know How to Buy this Crypto, traders come to the right place.
Key Takeaways
- SafeMoon is a cryptocurrency launched in March 2021 with a unique model to reward holders and discourage short-term selling.
- It uses a deflationary mechanism, redistributing part of each transaction to existing holders, which aims to stabilize the price.
- It became popular due to its viral marketing and community-driven approach, attracting many investors.
- Critics point out the lack of transparency and real-world use, raising concerns about the sustainability of its model.
- As with any crypto investment, it’s important to do thorough research and be aware of the risks involved.
What Is SafeMoon Crypto?
SafeMoon is a cryptocurrency that uses blockchain technology, like Bitcoin and Ethereum, but with unique features. It rewards holders by giving them 50% of the transaction fees (usually 10%) and reduces the supply of tokens through a process called “manual burn,” which can increase demand and price. It also has a liquidity pool on PancakeSwap, where tokens are added using fees.
In the past year, some celebrities like Jake Paul, Brett Ratner, and DJ Afrojack have endorsed SafeMoon, with Jake Paul claiming it could make people rich in the long run.
How to Buy SafeMoon Crypto?
If traders decide it is a good investment there are exchanges where traders can buy it. Crypto exchanges allow traders to buy and sell various cryptocurrencies, but not all coins can be bought with traditional money (fiat). SafeMoon, for example, isn’t available on centralized exchanges like Coinbase or Binance that accept fiat currency. However, traders can still buy SafeMoon by following the steps below.
Step 1: Download the Wallet and Sign Up
First, download a wallet app either on the trader’s computer, as a browser extension, or directly from the Google Play Store or Apple App Store. After downloading, traders will need to create a username—make sure to keep it safe.
Step 2: Secure Traders Recovery Phrase
After setting up the trader’s wallet, receive a 12-word recovery phrase. This phrase is the trader’s key to accessing the trader’s wallet if the device is lost or damaged. Keep it private—never share it with anyone. Write it down and store it in a safe place.
Step 3: Check if Traders Have Enough Ethereum for Fees
Before making a transaction, make sure traders have enough Ethereum (ETH) to cover the fees. These fees, called “gas fees,” depend on how busy the Ethereum network is, how fast traders want the transaction, and the size of traders’ transactions.
Step 4: Buy and Transfer Ethereum to Traders Wallet
After completing the verification process, transfer money to the trader’s wallet and buy Ethereum (ETH). Once purchased, the ETH will be stored in the trader’s wallet.
Step 5: Use Ethereum (ETH) to Buy SafeMoon
Once traders have ETH in their wallets, traders can swap it for this crypto. Just click the “swap” button, select SafeMoon, and choose how much ETH traders want to exchange for this crypto.
SafeMoon vs. SafeMoon V2
In December 2021, this Crypto launched an updated version called SafeMoon V2. This new token consolidates the original SafeMoon in a 1:1000 ratio and reduces transaction costs. If traders hold the original SafeMoon in a wallet, traders will need to manually switch to V2. SafeMoon wallet users can update the app and follow the instructions. If traders use another wallet, traders can convert tokens on SafeMoon Swap.
If traders’ SafeMoon tokens are on an exchange, traders don’t need to switch them themselves, as the exchange will handle the migration and provide updates. Compared to the original SafeMoon, V2 has lower transaction fees—now just 2% per transaction.
Advantages Of SafeMoon Crypto
It is, like other cryptocurrencies, runs on decentralized blockchain technology, meaning no single authority controls it. This decentralization improves security, transparency, and resistance to censorship. However, it has faced criticism for potential manipulation, even within decentralized systems.
A portion of this crypto transaction fee is added to a liquidity pool, which helps stabilize the token’s price during volatility by ensuring there are enough funds for trading. The fee is also distributed to existing holders, encouraging people to keep their tokens and earn more over time.
While it isn’t focused on yield farming or staking, its reflective tokenomics allow holders to earn passive income. Some users may also participate in yield farming or staking on DeFi platforms that support SafeMoon.
Disadvantages Of SafeMoon Crypto
Despite its advantages, this crypto has several downsides. Its future depends heavily on public perception and community support, especially after facing lawsuits and fraud allegations. Cryptocurrencies like this crypto are highly volatile, and prices can change rapidly, leading to big gains for some but significant losses for others, as seen in 2022.
This crypto also has limited real-world uses and is relatively new compared to more established cryptocurrencies. Its liquidity is lower, making it harder for investors to execute large trades without affecting the price.
Most importantly, this crypto remains a speculative investment with an uncertain business model and no widespread adoption yet. Due to past volatility and legal issues, some see it as a risky investment, with the potential for significant losses.
SafeMoon Controversies: Fraud Allegations and Criticisms
Several allegations have been made against SafeMoon, which should be considered before deciding if it’s the right investment for traders.
In April 2022, Stephen “Coffeezilla” Findeisen accused this crypto team of misusing millions of dollars. He found evidence that funds from this crypto liquidity wallet were moved to a wallet linked to John Karony’s company. SafeMoon’s former CTO, Thomas “Papa” Smith, defended the actions, claiming the funds were taken before Karony’s appointment.
In February 2022, a class-action lawsuit was filed, accusing SafeMoon of being a “pump and dump” scheme, with celebrities like Jake Paul and Nick Carter accused of misleading promotion. Another lawsuit for security fraud was filed in May 2022 but dropped in November 2022.
It also introduced several projects, including SafeMoon V2 and the Safemoon card, but delays in their release have drawn criticism.
How Does SafeMoon Work?
This crypto operates on a unique system called “tokenomics.” Every time a transaction happens, a 10% fee is charged. Half of this fee is redistributed to existing token holders, rewarding them for holding onto their crypto tokens. The other half is added to a liquidity pool, which helps stabilize the token’s price. This structure encourages long-term holding and aims to reduce price volatility, while also promoting a self-sustaining ecosystem.
Case Studies: Successful SafeMoon Crypto
Some investors have successful experiences with this crypto. Early adopters who bought SafeMoon when it first launched in 2021 at a very low price saw huge returns as the price soared later that year, turning small investments into significant profits. Others benefited from this crypto “reflection” system, where long-term holders earn passive income from transaction fees, steadily increasing their token balance. Additionally, the SafeMoon community has come together for charitable causes, raising funds for different projects, which helped boost the coin’s reputation. These success stories highlight the potential for high returns, but they also show the risks involved in the volatile crypto market.
Future of Safemoon crypto
The future of this crypto is uncertain and depends on several factors. While it has gained a strong community following and has introduced new features like SafeMoon V2 and its decentralized exchange, the project faces significant challenges. These include legal issues, allegations of fraud, and questions about its long-term sustainability and utility.
For this crypto to succeed, it needs to overcome challenges, prove its value beyond speculation, and gain wider adoption. If it continues to innovate and deliver, it could grow. However, like all cryptocurrencies, it’s highly speculative and volatile, so investors should carefully assess the risks and do thorough research before investing.
Conclusion: Buying this crypto can be rewarding, but it’s important to be cautious and understand the risks. By following the steps in this guide, traders can confidently buy this crypto. Always prioritize security, do research, and stay informed to make smart investment choices.
Also Read: Why Binance is the World’s Largest Crypto Exchange?
