If you spend any time following cryptocurrencies on the internet, you’ll almost certainly hear about a cryptocurrency that’s “going to the moon.”
SafeMoon has developed its brand on this famous term, but it has several idiosyncrasies that make it more difficult to acquire (and arguably riskier) than other popular cryptocurrencies.
What is Safemoon?
SafeMoon was one of the first Binance Smart Chain cryptocurrencies to attract public recognition. The majority of the attention has come from social media outlets such as Twitter and TikTok. It’s also one of the first cryptocurrencies to use redistribution tokenomics, which has yet to be established as a viable cryptocurrency structure. When you visit SafeMoon’s website, you’ll notice a slew of cryptocurrency-related phrases.
To mask the token’s similarity to a pyramid scheme, terms like “Static Rewards” are employed. SafeMoon investors’ holdings grow as a result of these “static rewards,” which are determined by how long they retain their investment. To help finance this, SafeMoon charges a 5% fee to investors who merely sell their tokens.
This prevents investors from selling their SafeMoon stock, even if it has no actual value. This 5% charge is burnt, redistributed, and added to PancakeSwap’s SafeMoon liquidity pool. The SafeMoon whitepaper has further information about this.
History of Safemoon
SafeMoon has only been trading for approximately three months, yet it has already outperformed the S& P 500 over the previous ten years. The coin first went on the market in March for $0.000000001 before rocketing to an all-time high of $0.000013.
To put these gains in context, an investor who purchased $100 of SafeMoon tokens at $0.000000001 at the time of the ICO would have received $130,000 at the time of the ICO. Despite the fact that SafeMoon has a tiny market capitalization, the token price is a little deceiving.
There are now over 585 trillion tokens in circulation, significantly more than other cryptocurrencies like Bitcoin (which has a maximum supply of 21 million) and Ethereum (which has a maximum supply of 21 million) (with a current supply of 115 million).
Because there are so many tokens in circulation, it’s almost impossible for SafeMoon to ever hit $1, as some investors claim. SafeMoon would require a market value 600 times that of Bitcoin to attain this pricing objective.
By moving to a new smart contract, SafeMoon (SAFEMOON) was recently updated to SafeMoon V2 (SFM). SAFEMOON (V1) now has a 100% reflection fee, thereby rendering the coin useless.
This will encourage holders to upgrade to 2.0, but the fact that the team was allowed to amend the initial contract is troubling. What’s to stop them from basically rendering V2 useless as well? There are a lot of hazards associated with a coin named “safe.”
Safemoon Tokens
Because tokens are dispersed proportionately to the number of SafeMoon tokens held, the people who have the most tokens get the most money. Large holders are enticed to sell their rewards and lock in gains since they earn a big amount of money each day. Smaller holders, on the other hand, earn pennies every day, and they’re encouraged to save these incentives in the hopes of increasing their total number of tokens.
SafeMoon is decentralized finance (Defi) coin, according to its description. For experienced cryptocurrency investors, however, it’s difficult to view anything on Binance Smart Chain as a Defi token. The coin market cap is very important. While BSC has many characteristics with Ethereum, such as smart contracts, it lacks decentralization significantly.
Investors that want to be a part of the Binance Chain network must put down a minimum of $11 million. The network is controlled by a few well-off Binance Coin holders, including persons directly associated with Binance, due to the high cost of being a part of it.
It is worthy of mention that a development team with the retail investors among all Jeremy Britton, gave a pretty big financial incentive to Safemoon, that is why people favor it so much.
Developers of the safe moon, have changed drastically from that, similarly to early investors also. Wallet holders, from major exchanges, are all about able to change, which is achieved by the purchases of safemoon.
How To Buy Safemoon
Open A Binance Account
Popular cryptocurrency exchanges like Coinbase and Gemini do not offer SafeMoon since it is a new and contentious cryptocurrency coin. As a result, investment in SafeMoon is more difficult than investing in other cryptocurrencies. To utilize the platform’s decentralized exchange, PancakeSwap, you’ll need to create a Binance account.
Binance registration is simple; all you have to do is submit an email address and establish a password. Before you can start trading, you may need to supply more information, depending on where you reside. Use cases of the coinbase app, sofi invest, and other BTC trades applications.
Download Metamask Wallet
The MetaMask wallet is used by the majority of cryptocurrency users that connect with decentralized exchanges (DEXs) since its Google Chrome extension makes it simple to use with other apps on your PC. To make your wallet compatible with BSC, go to the top right-hand corner of the screen and choose “Custom RFP” from the drop-down menu.
After that, you may set up your wallet by giving the required information. You can also try ellipal titan for a more long-term approach or other apps you may find on the app store. However always take into consideration the spot trading, high volatility, and the price stability of the fiat currency. Exit pancakeswap and enjoy the step-by-step instructions Metamask will provide you.
Buy A Hardware Wallet
Your crypto assets are significantly more safe than if you were to keep them on a centralized exchange since you’ll need to login to PancakeSwap via a software wallet. Software wallets, on the other hand, may still be hacked, therefore you might want to look into alternative storage options. Hardware wallets are offline storage devices for your bitcoin. It’s impossible for your cryptocurrency to be hacked this way.
Because the Binance Smart Chain is a new blockchain, there aren’t many hardware wallets that handle BEP-20 tokens, such as SafeMoon. To find the best hardware wallet, examine the current price of the crypto token you want to hold and try out different platforms first.
If you however hold a larger amount of some currency, we definitely recommend a wallet, but don’t spend too much money on it as people did this past year. You will enjoy the store of value and won’t worry about any burn strategy, as this is one of the advantages of buying safemoon. Your safe place will be the hardware wallet in alternative to the coinbase wallet.
Make Your Purchase
Fortunately, purchasing SafeMoon is significantly simpler than configuring your crypto wallets to work with PancakeSwap. It can’t be that difficult if Tik Tokers can figure it out, right? PancakeSwap is an Automated Market Maker (AMM), which means it calculates token values using mathematical equations rather than centralized order books.
All you have to do is choose the SafeMoon token, and you’ll be able to exchange your existing tokens for SafeMoon. The major advantage of Pancakeswap over other DEXs is its cheap transaction fees; you’ll probably spend less than $1 to complete your trade.
These cheap fees, however, come at the expense of centralization; although it’s a convenient short-term solution, the blockchain’s tiny number of validators raises security problems.
Pancakeswap should appear familiar if you’ve ever used Uniswap. Uniswap is the top decentralized exchange on Ethereum, whereas Pancakeswap is the leading decentralized exchange on Binance Smart Chain.
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