One of the newest and fastest-growing cryptocurrencies, SafeMoon is the talk of the town. It is one of the newest and fastest-growing cryptocurrencies. SafeMoon entered the cryptocurrency marketplace in March – and now this new digital coin is seeing further gains. It has received a lot of buzz recently, based on a pitch that it will avoid the wild price fluctuations endemic to Bitcoin, Ethereum, and more recently, Dogecoin.
SafeMoon is the baby of the cryptocurrency world compared to more established digital assets like Bitcoin and Dogecoin; the DeFi token was launched into the market just a few weeks ago. 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.
So far, over 2 million people have bought SafeMoon, according to the currency’s creators. Its price is a fraction of a cent—$.000007— but that’s up 202% in the past month as cryptocurrencies across the board have soared in value.
While SafeMoon has risen to prominence over just the past two months, it’s not yet listed on many major crypto exchanges. But supporters are keen to get the word out. Recently, SafeMoon landed on the Times Square billboard following a community fundraising and marketing initiative, with an ad that claims SafeMoon is “the world’s fastest-growing cryptocurrency.”
Even so, SafeMoon is a most unusual digital currency, as it imposes a penalty on anyone who tries to trade their coins (or “tokens”). Only a few months old, its sheer newness also might lead some potential crypto buyers to see it as an unknown quantity.
What is SafeMoon?
“What is SafeMoon?” is one of the most searched questions as the new cosmic-themed cryptocurrency craze takes over social media. SafeMoon is a DeFi token.
SafeMoon is another digital currency similar to Bitcoin and Ethereum, with a couple of key differences. Its creators say they want to fix some of the problems—like price volatility—that are common in other digital coins. To do this, SafeMoon aims to discourage day trading of its coin and to reward long-term holders by charging a 10% fee on each sale. Half of the fees are earmarked for existing coin owners, who receive a sort of dividend in the form of additional coins.
SafeMoon’s unique feature is that it charges a 10% fee to anyone who sells their tokens; 5% of this fee is then redistributed to all other SafeMoon owners, essentially rewarding those who hang onto their tokens and disincentivizing selling.
One criticism of cryptocurrencies like Bitcoin is how they’ve strayed from their original goal of providing a working, decentralized currency to simply become investable commodities; it’s not clear what, if anything, you’ll actually be able to buy with SafeMoon, but the selling fee is at least encouraging owners not to just buy and sell their tokens for now.
Due to its newness on the market, we know little about SafeMoon. Its website carries the slogan ‘Safely to the Moon’ – a play on the phrase first mooted by WallStreetBets on Reddit in an attempt to hype up the price of Dogecoin. Its founders have been holding ‘Ask Me Anything’ sessions to reassure potential investors of its legitimacy due to the unregulated nature of cryptocurrencies. This lack of regulation means its transaction costs are less – making it an attractive tool or investment for people to move digital money around the world.
What is the price value of SafeMoon?
After an initial sharp share price increase of 910% in April, the crypto’s current value is £0.000003, after recovering 6.4% in June. Compared to more established coins, SafeMoon is a piker. Its market cap is $4.1 billion, versus $792.3 billion for Bitcoin (price: $42,584) and $365.1 billion for Ethereum (price: $3,168). Like Dogecoin, SafeMoon is worth a lot less than Bitcoin or Ethereum per unit, but was climbing in value until recently. Coin Market Cap currently has each token at $0.00000436, down on its peak of $0.000014 in late April, but a sharp increase from its $0.0000000010 launch value.
That’s not enough for it to make it into the list of top cryptocurrency performers by market cap, but it’s already attracting attention from potential investors looking to invest while SafeMoon is still cheap — despite the selling fee.
Who leads SafeMoon?
SafeMoon lists a team of six leaders. At the top is CEO John Karony, who previously served as an analyst for the U.S. Department of Defense, according to his LinkedIn profile. He, along with SafeMoon’s chief technology officer Thomas Smith and community manager Trevor Church, is also working on an independent video game studio TANO, an acronym for “technically a new operation.”
Smith has spent the past two years working with different organizations on blockchain and decentralized financial products. SafeMoon’s chief operating officer, Jack Haines-Davies, based in the United Kingdom, lists two companies on LinkedIn, LikeandShare and Ben Phillips Global, as his former employers. It’s unclear what those companies do.
Is SafeMoon a safe investment?
Despite the SafeMoon team’s attempts to curb volatility, DeFi token’s price fluctuates wildly. On March 20, SafeMoon was trading at $0.000000073. A month later, SafeMoon reached an all-time high of $0.000014. That’s a whopping 19,078% increase!
SafeMoon is a highly speculative asset, especially since it’s still in its nascent stages in the cryptocurrency world. It’s too early to say whether it has potential for growth; it could crash and burn just as quickly as it rose to unexpected heights.
Cryptocurrencies are often highly volatile. And on current evidence, SafeMoon doesn’t look to be much different. Even as its value grows, it is still prone to big slides.
Cryptocurrencies can make for risky investments, due to the inherent volatility in the market. They’re not like most traditional stocks, where gains — and falls — tend to be incremental. Never invest more than you can afford to lose and do your research first.
The SafeMoon team has plans to launch its own SafeMoon exchange. According to the SafeMoon Twitter account, the team has successfully fundraised $1 million for the project. With any cryptocurrency investment, make sure to research the digital asset thoroughly before taking the plunge with your hard-earned money.