SafeMoon, a cryptocurrency, has quadrupled in value in the last month. SafeMoon is a relatively young cryptocurrency, having been launched in March 2021. Nevertheless, it made news almost immediately after its April debut, thanks to a massive build-up. SafeMoon was created to prevent early investors from selling, and that design drew a devoted following of early investors while also drawing doubters’ attention to the cryptocurrency. The currency looks to be a high-risk investment at the moment.
Working of SafeMoon
SafeMoon has a market capitalization of roughly USD1.9 billion since its introduction on March 8, 2021, whereas BTC has a market capitalization of approximately USD 1.1 trillion. Investors must pay a fee of 10%, with half of the funds going to the present stakeholders and the rest to what is called a liquidity pool (to maintain price stability). The designers of SafeMoon also reduce the amount of SafeMoon in circulation.
Pros and Cons of SafeMoon
Pros:
- SafeMoon’s meme crypto brand is presently one of the most significant components. Prominent cryptocurrencies have established a cult-like following on social media to stand out from the crowd, which has aided crypto firms in building their company branding. SafeMoon has been going viral since its creation and presents a severe threat to big cryptos.
- Backed by well-known influencers: Despite the lack of technological consequences and distinctive features, promotions from well-known celebrities such as Dave Portnoy have assisted SafeMoon in garnering tremendous popularity. However, other advertisements from influencers are needed for the cryptocurrency to obtain market legitimacy.
- Most cryptos go through a procedure known as token burning, which eliminates the currency from circulation forever. SafeMoon, on the other hand, uses manual burns instead of continual burns. According to the idea, this method might be advantageous for long-term investment, and it enables the burn to be publicly publicized and tracked, increasing openness.
- It is a way of earning money passively: SafeMoon was designed to encourage long-term investing while discouraging short-term trading. A 10% charge is added to every transaction, and SafeMoon holders receive 5%, while the remaining 5% is divided with Binance Coin and liquidity pool. These incentives allow SafeMoon investors to create an income stream, but they must pay a 10% charge if they wish to sell.
Cons:
SafeMoon, like many other cryptocurrencies, is purely speculative and has no intrinsic value. Below are some dangers to consider.
- The price of SafeMoon has been highly volatile since its inception, raising more than twenty thousand percent before dropping more than seventy percent. Since cryptocurrency tokens have no inherent value, the profit is determined by how much the investor spends for them and how much the investor can get when sold.
- Cryptocurrency is still relatively new, and authorities now understand its possible effects. China has outlawed cryptocurrency trading due to the financial risks it poses and the market volatility it encourages. Increased tax rates on cryptocurrency revenues might be viewed as a form of control.
- Liquidity: SafeMoon discourages selling with a 10% fee, which may be difficult for investors who need to get in and out quickly.
SafeMoon Price Prediction for Upcoming Years
An algorithm-based prediction tool, Wallet Investor presented a good prognosis on the SafeMoon currency. According to SafeMoon price prediction, the price would rise to USD 0.00179 in March 2022, USD 0.00254 in the January of 2023, USD 0.00335 in January in the year 2024, and USD 0.00429 in 2025, based on past data.
In January 2028, the price may rise to USD 0.00616273838, according to DigitalCoin Price.
Is Buying SafeMoon Profitable?
The investors’ specific circumstances and risk appetite will determine whether SFM is an appropriate investment. Cryptocurrencies are considered high-risk investments. Before investing, one must conduct an investigation and assess the level of risk one are willing to take. It is not a good idea to put money into an investment that one can’t afford to lose.
Conclusion
SafeMoon, like other currencies, is effectively at Binance’s discretion. However, all ships continue to go up with the tide. If BTC increases in this bull market, SafeMoon might follow suit, and other potential buyers could push it even further.
