In this article, Trading Education will take an in-depth look at whether or not SafeMoon is a good investment to help you answer the question, should you invest in SafeMoon?
Learn more about the pros and cons of investing in SafeMoon that would push you ahead to know if it is a good idea to invest in SAFEMOON.
SafeMoon may be the missing digital asset that could bring enormous gains to your portfolio of investments.
In this article, we look at the essential factors as to why you may consider investing in SafeMoon, the pros and cons, and what exactly to look for in reaching your investment goals.
Before investing in SafeMoon, you must understand that you are getting into a highly volatile asset class called cryptocurrencies. Investing in SafeMoon through the recommendations of friends and so-called experts from social media feeds, especially Twitter, Facebook, Telegram, and Reddit increases your chances of making huge losses within a short period.
First and foremost, SAFEMOON is not your average cryptocurrency. It is in the same league as Uniswap (UNI), Compound (COMP), Yearn Finance (YFI), Aave (AAVE), and PancakeSwap (CAKE).
It is a decentralized finance (DeFi) token that governs its protocol. That is the primary reason why SAFEMOON offers something entirely different from mainstream cryptocurrencies Bitcoin (BTC), Litecoin (LTC), Dash (DASH), Dogecoin (DOGE), Ether (ETH), and Tronix (TRX) that are used as transactional currencies.
SafeMoon, unlike Bitcoin, Litecoin, or Dogecoin, is an entirely new kind of decentralized finance protocol that is intended to change the earning structure of financial investments around the globe.
And while this presents a solid investment opportunity to novice traders and investors, you must know what SafeMoon is, what the aim of SafeMoon is, as well as any potential red flags to look out for as a speculator.
This is because cryptocurrencies are extremely unpredictable and therefore are not perfect investments.
If you want to buy or invest in SafeMoon quickly and easily, without paying any deposit fees, you can check out Gate.io.
What Is SafeMoon?
SafeMoon is a technology that acts as a cryptocurrency (SAFEMOON) and decentralized protocol for financial transactions. It was founded by John Karony in March 2021.
SafeMoon effectively exists as 3 separate but interrelated segments.
- The SafeMoon Protocol - A decentralized finance application for financial transactions that is housed on the Binance Smart Chain.
- SAFEMOON - The digital currency that works on the SafeMoon Protocol.
- SafeMoon Community - This comprises developers, users of the protocol, decentralized finance fans, and holders of SAFEMOON. Together, they have created a community that is helping reshape interest rates on investment instruments.
The idea behind SafeMoon is to improve the percentages on financial investments. Typically, most of the centralized finance systems offer infinitesimal rates for long-term holders of assets such as bonds and bills.
And this often results in relatively small investment interests, which take a long time to mature, and are out of the reach of the underbanked and unbanked.
SafeMoon offers an alternative platform that can facilitate financial investments that are 100% secure, instant, and are free from being opened to a significant few (investors with huge sums of money in their savings accounts).
Moreover, SafeMoon as a decentralized finance protocol can facilitate transactions in any part of the world so long as the person has an internet connection and digital wallet that can access the Binance Smart Chain as well as the Ethereum Network.
Are You Ready To Invest In SafeMoon?
Slowly, like Dogecoin (DOGE) and Shiba Inu (SHIB), millions of traders and investors started researching more about the project asking questions such as is SafeMoon legit, is SafeMoon a good investment, is SafeMoon a hoax, is SafeMoon worth buying, is SafeMoon legal, what might happen if you invest $100 in SafeMoon today, should you invest in SafeMoon, where to buy SafeMoon, how to buy SafeMoon, and the best places and ways to buy SafeMoon?
In just eight (8) months of being a tradable token, SAFEMOON has more than 2.8 million holders.
Today, the SafeMoon Protocol is used by a growing network of millions of people across the globe that are striving to find consistent passive income in the short, medium, and long term.
Some of the early investors of SAFEMOON are YouTuber Logan Paul, sports blogger Dave Portnoy, and rapper Lil’ Yachty.
What’s more, as the digital asset gained ground in the trading space and its protocol continues to accomplish milestones in the SafeMoon whitepaper, SAFEMOON could be adopted by thousands of individual crypto whales as well as institutional investors.
For many crypto and financial analysts, although the project looks relatively new and so far does not offer much to decentralized finance, SafeMoon has the potential to compete with centralized finance systems and other decentralized finance applications.
The Protocol can become the go-to network for secure, standardized, and reliable annual percentage yields (APYs) that are relatively high than the competing systems.
So, to help you make an informed decision about your next market move, here are the pros and cons of investing in SAFEMOON.
If you want to know the pros and cons of investing in SafeMoon so that you can figure out if it is a good idea to invest in SAFEMOON, Trading Education has several articles on the project.
Aside from SafeMoon, there are thousands of articles on other crypto projects that are related to SafeMoon because of its potential in the market such as Shiba Inu (SHIB). These articles would prove invaluable to your trading and investing needs.
The Pros of Investing in SafeMoon
What Are The Benefits Of Investing In SAFEMOON?
Before you invest in SafeMoon, you should assess the good sides of the coin. Many crypto analysts and speculators believe SafeMoon has a bright future, making it an attractive option for novice and established traders and investors.
So, here is a quick look at the pros of investing in SafeMoon that can answer why SAFEMOON is a good investment.
✅ SAFEMOON is Affordable
As of 2nd November 8 a.m. ET, SAFEMOON is trading below $0.000005. Although cryptocurrencies are highly volatile and your capital is at risk anytime you invest in SAFEMOON or other tokens, you can purchase about 20,000,000 (20 million coins) with $100.
SAFEMOON hit an all-time high of around $0.000014 in April, but several analysts and experts believe the valuation of the cryptocurrency can be pushed to new milestones in the not-too-distant future.
According to the analysts, “If all the financial services and market avenues turn favourable, this digital asset is set to break all barriers and perform exuberantly.” CryptoNewsZ believes that SAFEMOON could trade for the best possible price of $0.0000185 by the year’s end of 2022, increase to $0.0000135 in 2023, $0.0000552 in 2024, $0.0000747 in 2025, and reach a new all-time high price of $0.0001218 in 2027.
So, given its low price and gradual entry into the mainstream, risking $100 or more on SAFEMOON will do little to your savings. The token has already turned $100 investment into $1000s and $1000 investment into millions of dollars, who knows, SAFEMOON could bring you passive income consistently.
✅ SAFEMOON Has an Impressive Market Cap
Market Capitalization plays a huge role in the determination of an asset’s success. With a valuation of more than $2 billion, SAFEMOON is more valuable than some mainstream companies.
The statistic provided also certifies SAFEMOON is a medium-cap asset since it’s valued at over $2 billion. This means that it has made a step from being a low-cap asset signaling a strong sign of investor confidence.
With millions of traders pouring more liquidity into the cryptocurrency and more potential exchange listings in the future, the novel token behind the decentralized finance protocol can surpass $10 billion and be categorized as a large-cap asset.
Once this happens, as a trader or long-term investor, you will have some insurance of SAFEMOON not trading at insignificant or extinction zones in the future.
✅ SAFEMOON Continues to Record Impressive Trading Volume
One of the ways you can measure the potency of a cryptocurrency is trading volume. According to Steven Nickolas, “Trading Volume is the total number of shares of a security that were traded during a given period.
Trading volume is a technical indicator because it represents the overall activity of a security or a market.
Investors often use trading volume to confirm the existence, or a continuation, of a trend or trend reversal.”
Trading Volume for SAFEMOON has been consistent over the last few months. From 1st October to 31st October 2021, SAFEMOON recorded at least $5 million as a daily volume.
Inasmuch as this figure cannot be compared to the billions of dollars in daily volume recorded by Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Dogecoin (DOGE), Chainlink (LINK), and Shiba Inu (SHIB), the aforementioned statistic means that traders have not forgotten about the coin.
In the long term, as SAFEMOON becomes more mainstream and gains the support of high volume exchanges such as Binance, Mandala Exchange, Upbit, OKEx, Coinbase Exchange, ZT, Huobi Global, HitBTC, Changelly PRO, FTX, BitMart, Gemini, and Kraken among others, the trading volume could double, triple, quadruple, quintuple, or increase by as much as one hundred times.
The resultant effect of this would be an increment in the valuation of SAFEMOON.
This assertion is supported by Price Prediction.net which believes that SAFEMOON could trade for the best possible price of $0.00000882 on the last day of 2022.
This means investing in SAFEMOON in 2021 could see you with more than 90% returns in the short term.
Don't Miss: SafeMoon Price Predictions
✅ Long Term Holders of SAFEMOON Could Earn More in Annual Percentage Yield
The SafeMoon Protocol has been structured in a way that benefits long-term holders of the coin.
Aside from the potential earnings that could come your way in the event, SAFEMOON reaches new price milestones, you also stand a chance of being rewarded a percentage (5%) of selling fees. At the end of the year, this can be up to 80%.
This means a potential worth of $1000 can result in interests of $800. This is relatively high than the infinitesimal percentage yields offered by traditional savings and bonds/bills accounts.
Once millions of people are added up to the more than 2.8 million holders already having SAFEMOON on their portfolio of investments, there would be a collection of selling fees This will help keep the project relevant in the saturated market of cryptocurrencies.
✅ Selling Fees Associated With SAFEMOON Helps Prevents High Dips
The founder of SafeMoon Protocol, John Karony wanted a coin that would ensure safe gains and prevent the inevitability of bubbles. The vision of the project for the long term is to help holders earn passive rewards over time, and penalize selling.
According to the project’s white paper, “The goal is to prevent the larger dips when whales decide to sell their tokens later in the game which keeps the price from fluctuating as much”.
SafeMoon has an interesting hook of charging 10% to anyone who sells their holdings and distributes 5% to holders. This is designed to benefit those who buy and hold. More essentially, it prevents large selling.
An instance of large selling can be attributed to the bearish outlook of the financial market in March 2020. At the peak of the pandemic, 90% of asset holders let go of all their holdings, locked in gains, and reinvested their profits into other assets that had relatively low prices.
After the huge selling of SAFEMOON after its all-time high in April 2021 where the token reached a new high of $0.00001399 and closed the same day at $0.0000118 (shed 15% of its price in a few hours), several analysts and experts began touting the coin and the whole project as a PUMP-AND-DUMP scheme.
Therefore, the introduction of such fees helps prevent SAFEMOON from sharp recessions after impressive gains within a short period.
In the long term, the cryptocurrency will continue to exist, and more importantly, it would be able to bring enormous gains to potential traders and investors.
✅ SafeMoon Aims to Introduce NFT MarketPlace and Coin LaunchPad
According to the 2nd Quarter Report by Dapp Radar, the non-fungible token (NFT) space appears to have slowed down from April to June 2021 in terms of buzz.
Yet, the numbers say the opposite.
As per data sourced from the report “The amount of sales and daily average of unique active wallets spiked 111.46% and 152.89% respectively from the previous quarter.”
According to Sanbase, the total market capitalization for the non-fungible token (NFT) market over the last seven (7) days (26th October to 2nd November 2021) is $34,851,664,994 ($34 billion). Over the same period, trading volume stands at $19,748,085,065 ($19 billion).
In a space dominated by Axie Infinity (AXS), Decentraland (MANA), Chiliz (CHZ), Enjin Coin (ENJ), and The Sandbox (SAND) of Ethereum and Flow (FLOW), SafeMoon could become Binance Smart Chain’s ticket into breaking strongly into this billion-dollar market.
Additionally, with the Coin LaunchPad, users of the protocol would be provided with a basic layout that will help them create their own cryptocurrencies.
Like Ether (ETH), Solana (SOL), and Flow (FLOW) that are backed by blockchain technologies that have features for the creation of non-fungible tokens, SAFEMOON’s market value will benefit invaluably from the huge volume that will be poured onto the protocol through NFTs.
What’s more, the adoption of the protocol for the development of individual tokens will also improve user statistics and in the long term reflect positively in the valuation of SAFEMOON.
✅ SAFEMOON Has a More Feasible Millionaire Maker Status
There are reports of two brothers becoming crypto millionaires through investing in Shiba Inu (SHIB).
There are others about several investors becoming millionaires through Dogecoin (DOGE).
This has led millions of people to ask questions such as is it possible to become a millionaire with SAFEMOON, is SAFEMOON a millionaire-maker coin, will SAFEMOON make you rich, and could SAFEMOON be a millionaire-maker?
Yes! It is possible to become a millionaire with SAFEMOON. SAFEMOON could potentially become a millionaire-maker coin and SAFEMOON can make you a rich man or woman.
This is because, for $100, you stand a chance of buying about 20 million coins. This way you do not need SAFEMOON to trade in the region of $1 before you can start thinking about crossing the millionaire milestone.
If SAFEMOON trades for a coin at $0.05 (5 cents), you stand a chance of becoming a MILLIONAIRE since 20,000,000 by 0.05 equals $1,000,000 ($1 million).
Therefore unlike other crypto investments such as Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and Maker (MKR) among others that need to climb to new price milestones before you can become a millionaire, you can invest in SAFEMOON with a small amount and reap huge rewards.
Read Also: Could Safemoon Be A Millionaire-Maker?
✅ SAFEMOON Can Benefit from an Ambitious Roadmap
SafeMoon is relatively young but looks forward to forging great partnerships in the cryptocurrency and decentralized finance space. The project already has the support of BscScan, CERTIK, nomics, CoinMarket, CoinGecko, and WATCHER.GURU.
New partnerships will bring more mileage to the project and this will transcend into its market value.
In addition to this, the project aims to launch a decentralized exchange (DEX) called the SafeMoon Exchange.
According to the official handle of the project, “This exchange is a revolutionary new idea that will bring tokenomics to all of crypto on its platform. We call this Cryptonomics.”
Moreover, representatives of the protocol feel accomplishing milestones that will see SAFEMOON backed by innovative products and not mere speculation could help the token exchange listings.
In the future, the launch of the DEX in addition to charity projects, and additional crypto education applications will add more weight as to why eToro, Binance, and Coinbase should consider adding SAFEMOON to their cryptocurrency support list.
All these activities will surely improve the ranking of SAFEMOON in the market.
✅ SAFEMOON Burning Makes the Token a Deflationary Asset
According to the Investopedia Team, “Deflation is a general decline in prices for goods and services, typically associated with a contraction in the supply of money and credit in the economy. During deflation, the purchasing power of currency rises over time.”
This definition can help us understand SAFEMOON as a deflationary asset with an eye on the contraction in the supply of money. SafeMoon engages in Manual Burning.
As of Tuesday, 2nd November 2021, more than 420 trillion SAFEMOON tokens have been burned. This continues to reduce the maximum supply of the cryptocurrency.
This is the opposite of Dogecoin (DOGE) which continues to see an increase of 5 billion DOGE annually citing concerns of too many coins in circulation.
From our basic knowledge in economics, the burning of tokens means that at a point in time, scarcity will take hold of the coin. According to the basic laws of supply and demand, there is an increment in the value of an asset if demand exceeds supply.
This means that in the not-so-distant future, there is a huge chance that SAFEMOON could trade for 5 cents which could potentially make several millionaires.
It could as well reach 50, 60, or 70 cents like Dogecoin and surpass several milestones which could bring huge gains to holders.
Overall, SafeMoon’s Manual Burn increases the transparency of the project and the price of the token.
Although the project has several positives, it would be a great deal of injustice if we fail to analyze the cons of investing in SafeMoon.
The Cons Of Investing In SAFEMOON
What Are The Negatives Of Investing In SAFEMOON?
Like any investment, putting your money into SAFEMOON is not risk-free. Despite the success the token has enjoyed, its issuing authority (SafeMoon Protocol) has several problems that need to be addressed.
❌ 10% Selling Fee Could Prevent Potential Investors from Buying SAFEMOON
The idea of buying cryptocurrencies is to buy, hold, and sell.
It is only at the point of selling that a trader will know if he or she has made PROFITS or LOSSES.
Throughout all forms of investing, investors sell their holdings at the time they want and not recommendations made by founders and developers behind a particular token.
Because SafeMoon's aim is to buy and hold for a long term so that a huge liquidity pool can be built for the decentralized exchange (DEX) and other projects, several novices and established traders and investors may decide against investing in SAFEMOON.
This is because, at a selling fee of 10%, an investor may need to make $10,000 in gains to be able to make $9,000 profits ($10,000-$1000 which is 10% of the gains made).
This cannot be compared to the small sums of money being charged by other tokens such as Cardano (ADA), Tron (TRX), EOSIO (EOS), Stellar (XLM), Solana (SOL), and others at the point of sale.
In the long term, after more liquidity has been saved from trading activities on the SafeMoon project, it would be in the interest of the founder and developer to revise this policy.
If they do not, new decentralized finance projects with flexible fee structures could take up a huge part of the more than 2.8 million SAFEMOON holders as of November 2021.
❌ Faces Decentralization Problems
One of the most trusted audit firms CertiK conducted an intensive assessment of the SafeMoon project in April 2021 and found a total of 13 issues.
The major issue which caught the attention of Trading Education was Centralized Risk in the “ADD LIQUIDITY FUNCTION”.
According to CertiK, over a given period, “The owner address will accumulate a significant portion of the liquidity pool tokens. If the owner is an externally owned account (EOA), the entire project could face big consequences.”
Moreover, if you recall, we pointed out earlier that 10% of the seller fee goes into a liquidity pool. As it stands, this means the owner address is primed to accumulate a portion of the liquidity pool.
What was earlier hidden from potential traders and investors is that the owner's address (SafeMoon-BNB) stands a greater chance of collecting a portion of the forfeit tokens.
This means that the founder and developers of the token practically own the liquidity from the selling fee. Should the project collapse, they stand a chance of taking off with the liquidity pool.
❌ SAFEMOON faces Infinite Competition from Well-Established Coins
Although SAFEMOON has brought huge gains to investors, it does not fall into the top 5, 10, 20, 50, 100, 150, or 200 digital assets. SAFEMOON is ranked as a top 250 digital asset when market capitalization is considered.
The cryptocurrency continues to gain popularity daily but it cannot be compared to the standards of Bitcoin, Dogecoin, Ether, Tronix, Chainlink, Polkadot, Axie Infinity, Bitcoin Cash, and others.
You can invest in SAFEMOON but do not throw all your savings into it based on the recommendation received from friends and so-called experts online. Invest with caution.
❌ Burning Has Not Positively Impacted SAFEMOON’s Price
The reason for manually burning SAFEMOON coins is to decrease the number of coins in circulation. The resultant effect of this is scarcity which should lead to an increase in price.
Unfortunately, SAFEMOON continues to trade below 70% of its all-time high price recorded in April 2021. Time will tell if the continuous burning of tokens will have a positive effect on its price.
As of November 2021, SAFEMOON is still trading below $0.000005 and needs huge institutional investment or crypto miracle to be able to surpass its price high in the future.
❌ Faces Strong Competition in the Decentralized Finance World
Although SafeMoon combines Reflect Finance tokenomics and auto-liquidity generation, it competes with well-established decentralized applications such as Compound, Maker, and Yearn Finance.
Its decentralized exchange (SafeMoon) when launched will also face strong competition from Uniswap and SushiSwap of Ethereum and PancakeSwap of the same blockchain it runs on, Binance Smart Chain.
Aside from Ethereum, Tron has several decentralized applications running on their Network.
Further competition comes from decentralized finance-specific applications such as Solana (SOL) and Polkadot (DOT).
Additionally, EOSIO and Stellar have DEXs running on their platforms which continue to record huge volumes.
To add salt to injury, Cardano has finally triggered smart contracts which mean that developers can create DAPPs on Charles Hoskinson’s innovative technology.
The endless competition may not help SAFEMOON’s value in the long term.
Will SAFEMOON Be A Millionaire-Maker?
SAFEMOON is a millionaire maker coin. It has a market capitalization of more than $2 billion. This value continues to rise as the project gains mainstream acceptance and accomplishes most of their milestones.
Being a finite resource, the value of SAFEMOON is likely to increase further, as scarcity tends to promote a price increase.
Please remember that any form of investment comes with risk, so only invest what you can afford to lose. More importantly, research more about SafeMoon before risking funds.
To give you an idea of the amount of money you can invest in SAFEMOON that could make you a millionaire, let us consider these examples.
With $5, you can buy 1,000,000 SAFEMOONs, with $10, you can buy 2,000,000 SAFEMOONs, and with $20, you can buy 4,000,000 (4 million SAFEMOONs).
This means that for a $5 investment, you can become a millionaire if SAFEMOON reaches $1.
For a $10 investment, you can become a millionaire if SAFEMOON reaches $0.50 someday,
With a $20 investment, you can become a millionaire if SAFEMOON reaches $0.25 someday.
Conclusion: So, Is SAFEMOON A Good Investment?
SAFEMOON is a great investment in the medium and long term, according to the price forecasts of CryptoNewsZ, Price Prediction, and Wallet Investor.
You should know that most investments come down to the risk versus reward factor.
Therefore, always ask the question, do the potential rewards of investing in SAFEMOON outweigh the possible consequences of the risks associated with the investment?
SafeMoon certainly has some risk factors. The founders may have access to the liquidity pool. Also, its novel token SAFEMOON is still a long way from challenging its main market rivals, and it is not the most popular or perfect decentralized finance protocol as per blockchain purists.
Have You Considered Investing in SAFEMOON?
On the other hand, SafeMoon (SAFEMOON) is becoming more accepted as the days pass by and has the backing of major players in the game as well as supported cryptocurrency exchanges.
Plus, the current price of SAFEMOON makes it a low barrier of entry for crypto newcomers, as well as a good opportunity for experienced traders and investors to diversify their portfolios without throwing large sums of money into digital assets.
To put it simply, SAFEMOON is a low-risk investment with lots of hidden potentials. Whatever happens, use the thesis presented in this article to supplement independent research of the SafeMoon project before adding the token to your investment portfolio.
The real SafeMoon investing question is, does investing in SAFEMOON really work?
For thousands of early investors, SAFEMOON has returned more than 11,000% gains.
Investing in SAFEMOON worked for them, who knows, SAFEMOON may be the digital asset that could make you a millionaire.
Now that you know the pros and cons of investing in SafeMoon, if you are feeling inspired enough to start investing in SAFEMOON, you may be pleased to know that there are several ways to buy SAFEMOON in 2021, 2022, and beyond.
FAQs
Is SafeMoon Legit?
YES! SafeMoon has been rated by CertiK as a legitimate decentralized finance application to use. This is the primary reason why the project continues to add thousands of people to the number of SAFEMOON holders.
Where to Buy SAFEMOON?
There are several places where you can buy SAFEMOON. They include but are not limited to Gate.io, BitMart, ZB Global, Bitrue, BitForex, Hotbit, DeCoin, WhiteBIT, Bitbus, Jubi, Biswap, Biki, LBank, KickEx, and MEXC. If you are not interested in buying SAFEMOON through a centralized cryptocurrency exchange, one of the best ways to buy SAFEMOON is through decentralized exchange PancakeSwap V2.
Is SafeMoon a Hoax?
NO! SafeMoon is not a hoax. Although it was mired by several controversies in the initial stages of its launch, the project is running and has been vetted by several credible organizations as safe to use. What’s more, several analysts and experts believe you can add SAFEMOON to your investment portfolio because of its potential to transform dormant portfolios into gainful ones.