Is SafeMoon a Buy?

This relatively new cryptocurrency is building passive income and large support.

Last Updated November 1st 2021

5 Min Read

Key Points

Safemoon investors are continuously earning passive income
Safemoon has a strong support community behind it
The fairness distribution feature builds investor equality and confidence

There are now more than 5000 digital coins or cryptocurrencies in the crypto industry, Safemoon being one.

After Bitcoin’s success, developers from all over the world began developing alternative coins in a bid to cash in on their predecessor’s success. However, only a few of these coins have had promising projects. The rest are merely ‘pump and dump’ projects with no practical competitive value to short-term investors.

SafeMoon is one of the many cryptocurrencies developed after Bitcoin and Ethereum.

Whether or not SafeMoon is a buy is an issue of its value to the cryptocurrency industry. SafeMoon came into existence in 2021 as a community-driven decentralized digital coin.

Following its launch, more than two million people acquired this coin. SafeMoon works on the principle of discouraging holders from selling by charging them a 10% fee when they do. This approach is to try and drive the value of this coin.

Is SafeMoon A Good buy?

The big question now that you understand this currency’s background is whether or not it is a good buy. Deciding whether or not SafeMoon is still a buy is dependent on your personal view of this coin and your risk appetite. There are a few reasons that make it a safe buy. Here are some of them.

Don't Miss: Is It Worth Investing in Safemoon?

Safemoon Is Giving Holders Rewards

One benefit of investing in cryptocurrencies is earning money passively. Safemoon is one of the digital currencies that is enabling its holders to earn a passive income.

The currency has a feature called RFI Static reflection that allows Safemoon holders to continue earning rewards that they can turn into liquid cash as long as they have these tokens.

The rewards are not as high, but the Safemoon developers hope that they will grow in the new future.

There is also the promise that the price of Safemoon will remain stable thanks to its feature that discourages the whales from dumping their coins hence pushing its price downwards.

Safemoon Has Passionate Support Behind It

Most cryptocurrencies have no actual tangible value. They derive most of their value from the support they get from the ever-growing crypto community. Cryptocurrencies are decentralized and independent; hence have no marketing teams or advertising campaigns. Their success depends largely on the belief and use of those supporting them.

Safemoon has had significantly strong support since its launch this year. Already, this community has pushed the value of this company’s market cap to $3 billion. Considering that a token costs about $0.000005197, this is an exceptional value.

Safemoon’s community has gone a notch higher and raised funds to erect a Safemoon billboard in Times Square. The billboard will increase the coin’s visibility and maybe attract more members to this community.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Safemoon Has A Fair Distribution Of Tokens

How tokens get distributed after a coin is developed determines whether it is a safe buy or not. In most scams or pump and dump projects, the developers get most of the coins then dump them in the market when their prices go up.

SafeMoon is riding well when it comes to this metric. The developers included a feature that burned all the tokens acquired by the development team. The development team had to buy tokens in the same way as the other investors.

This fairness means that there is no chance of Safemoon investors dumping tokens of no value to the other holders and pushing the price down.

Safemoon Has An Experienced Development Team

The success of any project is mainly dependent on the development team, especially in the crypto industry. The development and management team determine if the project is going to achieve its objectives and its sustainability.

Safemoon does not only have an experienced team of developers behind it; they are also people who can be trusted. Some of these individuals include Thomas Smith, the Chief Technology Officer and development; John Karony, the CEO; and Henry Wyatt, the vice president of research and development. This team looks promising and could be a good reason for investing in Safemoon.

Don't Miss: How to Buy Safemoon - Beginner's Guide

Based On The Few Reasons Highlighted, Is Safemoon A Safe Buy?

Safemoon growth trend has been fairly good, jumping more than 1,500% high in just a week in April when it hit its all-time high and then dropping down 70%. It has since maintained the same price of about $0.000005197, with a market cap of $3 billion, keeping it above the 250 positions in the list of cryptocurrencies.

Before buying Safemoon, keep in mind that it is a new coin; it has no practical use and relies mostly on having more people join its community to drive up its price and realize profits for its investors. It is also not listed in a lot of major exchanges apart from PancakeSwap and BitMart.

Before investing in any cryptocurrency, do your due diligence as all of them are volatile and risky. As a rule of thumb, never use money that you are not willing to lose when it comes to investing in cryptocurrencies.