"What is SafeMoon?" is one of the most searched questions on Google as the new moon-inspired cryptocurrency craze takes over social media. SafeMoon is a DeFi token. DeFi is a portmonteau of the words "decentralized finance," a cryptocurrency movement that seeks to eliminate authorized institutions (eg, banks and government agencies) through blockchain technology.
SafeMoon is the baby of the crypto world compared to more established digital assets like Bitcoin and Dogecoin; the DeFi token was launched on the market just a few weeks ago. Despite its youth, SafeMoon is already the talk of the town. In this explanation, we'll dive into everything you need to know: what is SafeMoon, how to buy SafeMoon, and is it a worthy investment.
What is SafeMoon?
Let's dive into SafeMoon's meat and potatoes. As mentioned, Bitmart SafeMoon, launched on March 8, 2021, is a digital asset that seeks to fulfill the ambitions of decentralized finance. Like Dogecoin, Bitcoin, and Ethereum, SafeMoon is powered by blockchain technology. A blockchain is a public ledger shared between a peer-to-peer network that records information about each transaction.
If the concept of a blockchain is too abstract for you, imagine a large computer network that eliminates the need for intermediaries (e.g. banks) because it verifies transactions through machine consensus. The process of securing and verifying these cryptocurrency transactions is called "mining." In fact, the current graphics card shortage is driven by the blockchain industry; Graphics cards are vital for computing complex algorithms on the blockchain.
What makes SafeMoon different from other DeFi tokens is that it charges sellers a 10% fee and redistributes half to other holders to incentivize buying and holding. You see, SafeMoon seeks to rectify two problems plaguing the cryptocurrency industry: investors' bad habit of selling prematurely and extreme volatility. As such, the SafeMoon team hopes that the 10% fee will prevent SafeMoon holders from panic selling.
Is SafeMoon a safe investment?
Despite attempts by the SafeMoon crypto team to curb volatility, the price of the DeFi token fluctuates wildly. On March 20, SafeMoon was trading at $ 0.000000073. A month later, SafeMoon hit an all-time high of $ 0.000014. That's a whopping 19.078% increase! If you were crazy enough to spend $ 7,300 on SafeMoon in mid-March, 30 days later, you would have $ 1.4 million on your hands. Cha-ching!
However, after that spike of $ 0.000014, SafeMoon is now trading at $ 0.00005 as of this writing, which is a 64% drop. Some are optimistic about SafeMoon and believe it will emulate Dogecoin's breakneck growth. Others, however, are skeptical; some have even called SafeMoon a "Ponzi scheme."
A Ponzi scheme is an investment scam that generates returns for earlier investors by taking money from later investors, which skeptics say sounds terrifyingly similar to SafeMoon's 10% seller fee stipulation. Also, cryptocurrency experts warn that SafeMoon has no real value.
"I think investors should be useful content careful with a cryptocurrency that has no real utility. It is clear that the SafeMoon team wants to reward loyal users, but if the cryptocurrency has no real use, what is the point of keeping it for forever?" Clayton Moore, CEO of NetCents Technology (a cryptocurrency-based payment processing platform), told US News and World Report.
However, he could argue that Dogecoin and other digital assets are also of little use. Many people use cryptocurrency as an investment vehicle, hoping that the price will skyrocket and increase their ROI exponentially. Many SafeMoon supporters share the same sentiments for their moon-inspired DeFi tokens; it is just a "high risk, high reward" investment vehicle.
SafeMoon is a highly speculative asset, especially since it is still in its early stages in the world of cryptocurrencies. It is too early to say if it has growth potential; it could crash and burn as fast as it soared to unexpected heights.
How to buy SafeMoon?
You cannot buy SafeMoon on Coinbase. You will have to buy SafeMoon from one of four exchanges: PancakeSwap, BitMart, Gate.io, and WhiteBit. PancakeSwap is the most popular platform to buy SafeMoon.
Buying SafeMoon is an amazing process. You will need to buy BNB (BinanceCoin) and convert it to SmartChain before you can acquire SafeMoon tokens. Although the process is a bit complicated, don't worry. We have already published an easy-to-follow guide on how to buy SafeMoon.
Bottom line
The coinbase safeMoon team has plans to launch their own SafeMoon exchange. According to the SafeMoon Twitter account, the team has successfully raised $ 1 million for the project.
Hopefully this SafeMoon exchange will make the purchase process less labrythine, however, we won't hold our breath. As with any cryptocurrency investment, be sure to thoroughly research your target digital asset before taking the plunge with your hard-earned money.