The new cryptocurrency SafeMoon has been making buzz since its launch in March 2021. SafeMoon uses Proof of authority and is built entirely on Binance Smart Chain.
We are witnessing several cryptocurrencies sprouting out like Siba Inu, Dogelon, Akita Inu, and more. Experts are comparing this time similar to 2017 when many fake cryptocurrencies emerged in the global market.
Now and then we see a new cryptocurrency coming up in the market. But can we trust all of them with our money?
However, SafeMoon unlike other fake cryptocurrencies is based on three core components. They are reflection, pancake swamp, and token burn.
The mechanism of Proof of authority keeps the system centralized. The validators in Proof of authority are chosen and pre-approved by Binance. Thus the whole Blockchain system is centralized. The centralized Binance Smart Chain provides the users with security and trust.
Today there are over 10,000 cryptocurrencies, all of which promise huge profits. Thus it has become crucial to differentiate between a scam and a real crypto coin.
Here we have compiled a detailed guide on SafeMoon to help you make better investment decisions.
What is SafeMoon?
SafeMoon is a BEP20 token that was launched on 8th March 2021 on the Binance Smart Chain (BSC) ecosystem.
The SafeMoon project is being handled by Thomas Smith, John Karony, Hank Wyatt, Jack Haines, Jacob Smith, and Charles Carony.
The global crypto market is home to numerous crypto projects that offer high returns. No matter how secure and safe investment options they promise, the volatility and risk factor in the crypto still remains.
The existing DeFi platforms still face many challenges like rug pulls and faulty smart contracts. The flaws in DeFi platforms make it risky to trust.
But the SafeMoon crypto takes a step to simplify the DeFi process. It gives the entire yield farming or liquidity mining process an unprecedented level of security. This is a community-driven protocol that uses an automated liquidity generation and token burn process to generate a reasonable APY for investors.
SafeMoon market statistics
- SafeMoon currently has 2.5 million holders with over $50 million locked in liquidity. This makes SafeMoon the third-largest crypto token by Binance.
- According to CoinMarketCap, SafeMoon which works through the auto-liquidity generation and reflection taxonomies have a fully diluted market capitalization of $2.9 billion.
- Till now 416 trillion SafeMoon tokens have been burned.
- SafeMoon is at the 202nd position on the CoinMarketCap.
- At present, there are 585 trillion SafeMoon tokens in circulation. The total supply is 1 quadrillion tokens.
— SafeMoon (@safemoon) August 19, 2021
HOW DO SafeMoon works?
According to the SafeMoon website it claims to run on three core components. The first component is reflection where the transaction fee is charged. This transaction fee is distributed among the holders of SafeMoon.
Then the fee charged on SafeMoon transactions are distributed among various liquidity pools on Pancake swap and other platforms. The third component is token burn that occurs during each trade. The manual token burn balances the price fluctuations by reducing the token supply to increase its value and demand.
SafeMoon in their whitepaper said “Having burns controlled by the team and promoted based on achievements helps to keep the community rewarded and informed. SafeMoon aims to implement a burn strategy that is beneficial and rewarding for those engaged for the long term. Furthermore, the total number of SAFEMOON burned is featured on our readout located on the website”.
Nowhere on the SafeMoon website or whitepaper, there is any mention of the percentage of the transaction that will be burned. They only clarify the percentage of the transaction fee that will be charged and distributed.
SafeMoon transactions will bear a 10% fee which will be distributed in 2 ways. 5% of the fee will be distributed to the SafeMoon holders while the rest will go to liquidity pools.
2.5% of the 5% liquidity pool share will be sold by smart contracts into Binance coin. The rest will be automatically paired with Binance coin to be added to Pancake Swap’s liquidity pool.
This mechanism ensures that SafeMoon holders get static rewards. While those who constantly sell SafeMoon tokens are penalized. It works to stabilize SafeMoon’s prices and creates funds for liquidity.
How to buy SafeMoon tokens from SafeMoon wallet?
SafeMoon wallet is available for only Android devices. It can be easily downloaded and installed from the Google Play Store.
Here is a step by step guide to install, create an account on SafeMoon wallet and buy tokens.
- Go to the Google Play store and search for SafeMoon wallet.
- Download the SafeMoon wallet to your phone.
- Now open the SafeMoon wallet on your phone and click on “Create a new wallet”.
- Generate a seed phrase and ensure to note it down for future reference.
- Now you will be prompted to set your login password.
- Create a strong password and click on “confirm”.
- You have successfully created your SafeMoon account.
- On the app’s home page you will see three options at the top – “send”, “receive” and “buy”.
- Now to buy the SafeMoon token click on “buy”.
- A new screen will open where you first select your preferred fiat currency, set the amount and choose the payment method.
- You can choose to pay through Apple pay or card payment.
- After selecting the preferred payment method, check the tiny box at the end of the page.
- To proceed with the payment click on “Next” and complete your payment process.
On successful payment, you will get a confirmation message and notification of your purchase. Moreover, on the SafeMoon wallet app, you will be able to view the number of tokens you purchased and their current value. You can also explore through the app to view all the cryptocurrencies, their current prices and percentage increase or decrease.
Is SafeMoon a safe investment?
Similar to all cryptocurrencies, SafeMoon also has its share of high risks and volatility. You should invest in SafeMoon only after carefully understanding its working mechanism and considering the risk factors.
You will have to consider the SafeMoon team’s capability and the authority of Binance on it. At present predicting anything about SafeMoon would be complete speculation.
SafeMoon is designed to encourage long term investments and throw cold water on selling. But it is a highly volatile asset whose success depends on Binance, its community and the SafeMoon team.