The world of cryptocurrencies is highly volatile. This was evident during the massive bull run experienced by Bitcoin and other altcoins in April & May. One of the biggest stars of the bull run was Dogecoin who made overnight millionaires with its historic price rise. Due to this, people started looking for the next big thing and one coin that has caught the attention of many is Safemoon.
What is Safemoon?
Safemoon is a cryptocurrency which deals in decentralized finance. The official website claims that they are a fair launched and community driven token with 3 core functionalities taking place during each trade – Reflection, Burn & LP acquisition.
How is it different from other tokens?
Safemoon introduced the concept of reflections or static rewards in which they encourage holders by rewarding them for holding the coin.
They termed this phenomenon as tokenomics and there have been a plethora of other coins which have copied this feature from Safemoon.
During each trade of safemoon, there is a 10% fee levied on the seller (which discourages day trading). The fees is divided into the 3 core funtionalities that are –
- 5% of the fee is distributed to the holders as static rewards (similar to farming / staking) in form of extra safemoon coins. This is known as reflections.
- The other 5% is divided into two halves. One half is used to buy BNB and the other is paired with the BNB bought and deposited as liquidity on Pancakeswap exchange. This automated liquidity pool ensure that there is enough liquidity for trading this token.
- From the 5% reflections token, a portion is sent to a burn wallet which removes the tokens from circulation. This is done to gradually bring down the supply and create an upward pressure on pricing.
The Safemoon Ecosystem
The biggest feature of this token is the ecosystem that the team is trying to create. The owners of the token have clarified that safemoon is not going to be a “meme” coin. They have a list of products that are in pipeline which will give safemoon real world utility.
Some of the major items constituting the ecosystem are –
- The Safemoon Wallet – The first major product release by the team would be the wallet. Touted as the most secure crypto wallet ever, the team has claimed that the safemoon wallet will also be the most user friendly. It is undergoing beta testing right now and is expected to be released by end of July, 2021.
- The Safemoon Exchange – Another huge part of the ecosystem is the exchange that the team is building. The team claims that once the exchange is live, the other tokens listed in the exchange will also follow tokenomics and reward holders. This is a huge development since this will attract many crypto traders for the rewards.
- Blockchain – Another huge announcement by the team is regarding the development of the safemoon blockchain. Having their own blockchain will allow safemoon to help other devs launch their own tokens using the safemoon platform with integrated tokenomics and other unique features found in safemoon.
Is it safe to buy Safemoon?
Even though Safemoon has been compared to Dogecoin and Shiba Inu and branded as a “meme” coin, there is much more than what meets the eye.
The team behind safemoon has created an ambitious & interesting roadmap in which they have explained about the various products that they will be launching.
With more than 2.4 million holders and a 1+ million strong community, safemoon has shown the world that the community backed crypto is to be taken seriously.
A few major points that make it safe to buy safemoon are –
- The items on the roadmap are more or less on track, which will result in actual utility of the token.
- The owners / developers of the token are known, which further reduces the chances of a rugpull since safemoon is a registered entity governed by respective laws.
- Fair launch on DxSale.
- New liquidity generated with each trade due to tokenomics.
Where can I buy safemoon in India?
The major problem with safemoon is that it is not listed on many centralized exchanges. Due to this, many investors are unable to get their hands on this unique coin.
In India, BitBNS is the only exchange that lists safemoon. You can create an ID on BitBNS and buy safemoon tokens using INR. The exchange follows the tokenomics and they airdrop the reflection tokens earned once in a month.
The other way to buy safemoon is via pancakeswap. Pancakeswap is a decentralized exchange or DEX. It allows users to swap tokens based on the BEP20 or Binance Smart Chain network.
The step by step procedure to purchase via pancakeswap can be found here.
Is it worth buying safemoon?
While the project does have a promising roadmap and a huge community backing it, the decision to invest has to be yours. It is better to do some research on the coin before you decide to invest and remember, crypto trades are risky.
Hence, only invest the money that you’re ready to lose. Investing more than what your risk appetite allows can have detrimental impact on your finances and can even cause permanent damage to your lifestyle.
For tips on how to effectively research before buying a crypto, you can read my other article here.
Make sure that you diversify and include stable cryptos like Bitcoin, Ethereum, Cardano & Matic in your portfolio.
My final take on safemoon is quite simple – It is a gamble to invest in this coin hence if you do decide to get in, do not invest a high amount.
Also, the price movements at current scenario are quite slow and hence you might have to wait for a while before seeing some good returns on this crypto. Finally, there is always a chance for a crypto to fail and hence you must be ready to bear the losses.
All in all, the suggestion would be to do your own research and invest a disposable amount in this coin to ensure that you’re not overly exposed.
What do you think about this coin? Are you going to buy safemoon? Let me know in the comments below.
If you have any other such coin that needs to be researched, you can let me know and I will try and do an article on it.
Ashish is Write it Right’s go to man for all things “Finance”. He started his passion for blogging and content writing during his college days back in 2013 and has been on and off ever since.
His hobbies include trying out different cuisines, binge watching shows, traveling and sleeping!!
Currently, he works full time as a Credit & Portfolio Manager and with his blogging, aims to educate the masses about Finance, Fintech and the Cryptocurrency revolution.