Safemoon Review 2022: Should You Invest in This New Cryptocurrency?
It won't be wrong to say that cryptocurrency is now a rapidly evolving industry in the investment world. Many crypto coins are leading the market like Bitcoin, Ethereum, and the list goes on. In addition, some new coins are coming to market with passing every single day.
Safemoon is also one of the newest cryptocurrencies. Unlike many flop projects, it made some early success and got the people's attention. Now many investors are curious about this token and want to know about its every aspect.
This Safemoon review is for all such crypto geeks who are thinking of spending on this project. The article will briefly cover the Safemoon token and make you take your decision more confidently.
What Is Safemoon?
Safemoon was the newly launched cryptocurrency on March 8, 2021. It was created on Binance Smart Chain and got a massive upsurge quickly to become the third-largest token on the BSC ecosystem.
The Safemoon token was worth $0.00000001, and didn't receive any good responses at the launch time. So the hype was created on April 20, 2021, when the token price touched $0.00001339. After that, Safemoon has attracted over 2.5 million users while burning half of its supply.
The stats show that Safemoon is ranking at 215 on coinmarketcap. Above this, a total of 585 trillion tokens is in supply circulation with a capitalization worth $2.9 billion. The one reason for its popularity is coping with the issue of impermanent losses. In this way, Safemoon ensures that buying and holding this token would never be a wrong decision.
The white paper of Safemoon clearly shows that they are tackling the issue of high APY LP farms. Because many newcomers can't access all the benefits of these farms, this project introduced static rewards to give equal benefits to their token holders.
Who Created Safemoon?
Safemoon token is supervised by six persons, including CEO John Karony. However, Karony has no work history in the blockchain field. Instead, he served as an analyst in the US Department of Defense.
But his companion Thomas Smith has a considerable portfolio of working in software engineering firms and is a current CTO of Safemoon. Karony and Smith, with the collaboration of Trevor Church, founded an Indie game studio named TANO. However, they didn't release any business information yet.
The other team members include Thomas Smith, Hank Wyatt, and Jack Haines. Thomas Smith is a web developer on Safemoon and worked as a game developer with many other companies. Hank Wyatt and Jack Haines overhead the general management of the platform.
How Does Safemoon Work?
The revolution of the DeFi industry attracts many users and creates new problems in the crypto world. Impermanent loss and trap of high APY yield farming are two significant issues solved by Safemoon. Because of this new model, many crypto leaders are against this new model, making billions out of yield farming.
Many other things improved through the Safemoon token, giving investors a high-profit margin. Here are some prominent features of Safemoon:
Burns are the most common dynamics used by many platforms to impact their tokens positively. This strategy sometimes works to achieve the goals, but not always. Most protocols go with automated burns, which are pretty beneficial initially. But the with time, the impact starts decreasing as burns start losing their momentum.
Safemoon came with the strategy of manual burns to solve the problem. Manual or controlled burns by the team never lose the high impact and cause maximum community engagement. The crypto enthusiasts liked this transparent process. They can easily track the number of tokens burned and every other information on the homepage of the official website.
Automated Liquidity Pool
Automatic Liquidity Pools are the unique aspect of Safemoon compared to other DeFi platforms. These Automatic LP offers two advantages to Safemoon holders.
- Smart contract develops the interest of both the buyers and sellers, which results in an expanded community of Liquidity Pools.
- Secondly, Safemoon wants you to be a long-term investor. If you're going to sell the Safemoon tokens, 10% will be deducted as a fee. A 5% of this fee will be distributed among the rest of the contributors.
These two steps were taken to reduce the problem created by other DeFi reflection tokens.
Early birds received more benefits and incentives when cryptocurrency was first introduced. If we talk about Bitcoin, people who started early mining could get more rewards than the latecomers. Unfortunately, it means the value of prizes decreases with time.
Safemoon solved the problem with the introduction of static rewards. So no matter when you join the platform, you will always get fixed incentives based on the traded volume. Hence there is no selling pressure on token holders, and they keep on getting commission over time.
Proof of Authority
Since the Safemoon is created on the Binance Smart Chain, it needs to follow a proof of authority mechanism. This mechanism gives identity to block creators in the name of validators. To become a validator, you need to show your real identity to Binance and ensure long-term collaboration with this platform.
After this, all validators are tracked through Binance so that the platform has complete control of the blockchain. Binance always works for everyone's interests. That's why users never complain about any aspect changed by the platform.
Brighter Side of Safemoon Tokens?
Safemoon token is new in the crypto world but has acquired a massive audience in a very short time. Its means there is something more valuable on this platform rather than others. The two features make it stand out in this overcrowded crypto market.
1. Source of Passive Income
If you invest in Safemoon Liquidity Pools, you will continuously earn some passive income until your stay. And this is because Safemoon supports long-term commitment and cutoff 10% fee on selling. Half of this fee is distributed among the remaining community, and send other half allocated to compensate platform expenditures.
The time comes when there is enormous selling pressure, and most investors come out of the pool, and it could be highly beneficial if you still stay there.
2. Brand Value
You might ask that thousands of crypto coins are coming every day, then how does Safemoon get this much attention? The answer is simple, and that is branding on social media. They set a viral meme campaign and received thousands of followers overnight.
Since its launch, you will have constantly seen their posts on social media. This is the secret sauce of Safemoon's maximum reach without having advanced technology compared to platforms like Bitcoin or Ethereum.
Back in 2021, Safemoon received many endorsements from high-profile influencers. The biggest one was from the Barstool Sports founder Dave Portnoy. He announced to spend $40,000 on Safemoon LPs. In addition, Jake Paul, a celebrity, invested and shared it with the public. These two votes were enough for people to trust this new platform.
How to Buy Safemoon on Trust Wallet?
Are you ready to take a chance of investing in Safemoon? If yes, you need to follow a specific roadmap to buying Safemoon as it's tricky. Here is a step-by-step guide to purchasing Safemoon through Trust Wallet.
Step 1: Setup Trust Wallet
Safemoon can't be purchased through fiat currency and needs a decentralized exchange platform. So it would be best if you went for a Binance Smart Chain wallet like Trust Wallet for that purpose. First, you need to set up a Trust Wallet account through its app. Here are the steps:
- Install Trust Wallet app on your mobile after downloading from Apple Store or Google Play Store.
- They will ask a recovery phrase to revive your access if you forget. Also, you will be asked to save private keys as anyone can hack your Wallet through these keys.
- That's all, and you are ready to use Trust Wallet.
Step 2: Purchase BNB
As we mentioned earlier that it's impossible to purchase Safemoon directly through fiat money. So for an alternative, you have to buy BNB first, and then you can swap it with Safemoon tokens. Binance Coins can be purchased directly with a credit or debit card in Trust Wallet.
Step3: Convert BNB Through Trust Wallet
Make sure you have a clear mind about the investment amount. After purchasing BNBs, covert them to Smart Chain through the Trust Wallet. The process is straightforward, and you will see the converted amount on your Trust Wallet's screen. Now you can trade these coins to purchase Safemoon.
Step 4: Go to PancakeSwap
Safemoon can only exchange on the PancakeSwap, so you first need to connect your Trust Wallet with the PancakeSwap platform. It can be done by attaching the DApp browser with Trust Wallet. This step is sometimes irritating depending on a mobile phone. But you can't skip as it's mandatory.
Step 5: Trade Smart Chain with Safemoon Token
Now you are ready to swap Smart Chain coins with Safemoon. Write Safemoon on the search bar, and you will see the option. But keep in mind:
- Safemoon will charge a 10% fee for every transaction.
- It's necessary to allocate the slippage tolerance of 12% to vary the executed price. If not, you can't trade this token.
Then select the amount of BNB to exchange and hit the confirm button.
Step 6: Enable Safemoon on Trust Wallet
You might not see the converted Safemoon tokens in your Trust Wallet. If that's the case, follow a few more steps:
- Copy the Safemoon's contract address from the page you bought the tokens.
- On the Trust Wallet app, use the 'Add Custom Token' and click on Safemoon
- Then paste all information there and tap on done.
After that, your purchased Safemoon funds will appear in your cryptocurrency wallet.
Risks Involved in Purchasing Safemoon?
You can never be assured about the profit and loss in the crypto world. Many factors control this industry, and no one knows where you will lose all of your investment. Like every other token, Safemoon has some downsides. If you are thinking of owning Safemoon tokens, then first check the risks involved in this purchase.
Deducting 10% as a selling fee is a trap for investors. Although it's benefiting some of the holders, you will receive a penalty if you want to get out for some reason. So it would help if you had to be clear before investing in Safemoon LPs.
Volatility in cryptocurrency attracts investors to make early money and is also one of the significant risks. You can't predict the future prices of any token, and that's the case with Safemoon. The prices went to peak immediately and then fell within weeks.
- Government Regulations
At the beginning of the crypto journey, no one had the idea that this industry could turn into trillions of dollars. However, as the awareness increases, governments notice it could be a financial risk for any country.
China has banned crypto trading because of this speculative trading. The other countries are implementing high taxes on the crypto gains, and the USA has already imposed a tax on Bitcoin and Ethereum. So any such announcement from the government can cause the loss of investment.
How to Sell Safemoon on Trust Wallet?
Selling Safemoon tokens on Trust Wallet is not too hard if you purchase through it. Keep in mind that Safemoon will deduct 10% of the transaction fee. Just follow the simple steps to sell the Safemoon:
- Go to the PancakeSwap page, where you will turn your Safemoon tokens to BNB.
- On DApp, select the Safemoon and the amount you want to swap.
- Then choose the currency you want to convert in and fix the slippage tolerance.
- After selecting desired currency and slippage tolerance, PancakeSwap will process the transaction to approve.
- On approval, confirm the process, and the 'Transaction Submitted' pop-up will appear on the screen. After some time, you will see BNBs in your Trust Wallet.
- Now the Safemoon has been converted into BNB, which can be traded with any other cryptocurrency. Also, you can convert them into fiat money according to your region.
Future of Safemoon
Safemoon developers are constantly working to improve the platform and overcome hurdles. They made a few announcements about the future plans they are working on. Simplex is the solution of purchasing Safemoon through debit/credit card, and they have been working on it.
Moreover, they decided to introduce their NFTs and DEX to help the community. The team is also putting efforts into integrating these tokens in video games. Since the founder of Safemoon is also the CEO of a video games platform called TANO. So something interesting is expected in the coming years.
1. Is it necessary to have a crypto wallet to buy Safemoon?
Yes, you must need a decentralized based crypto wallet to buy, store, and trade Safemoon. It can't be purchased through fiat money, so Wallet is the essential need of investors to exchange it with another currency.
2. Does Safemoon have its Wallet?
At the moment, Safemoon doesn't have any native wallet. However, it included in their future plans to introduce crypto wallets, cryptocurrency exchange, and blockchain.
3. How many Safemoon Coins are there?
According to stats, the Safemoon created around one thousand trillion coins, out of which 777 trillion were available to the user at the launch time. The remaining 223 trillion are still in the developer wallet available soon.
4. Can you swap Safemoon with BTC?
Yes, it's possible. The crypto wallet is essential, which supports both Safemoon and BTC. Since only a few wallets work fine with Safemoon. Then go to the exchange widget and select the amount you want to convert. Within a matter of seconds, you will receive Bitcoin in your Wallet.
Conclusion: Is Safemoon a Really Good Investment?
Investing in Safemoon is entirely your own decision as many factors make it valuable while other decline it by saying highly unpredictable. The success of this platform is highly based on a commitment from the team, Binance structure, and the community of its investors.
Moreover, Safemoon is for long-term investment and discourages selling. The price fluctuation is still not stable even the developers are trying hard. Believing on the team is also hard as they don't have huge success proof. However, you can take risks as the price fluctuation can be in your favor.
The developer team should focus on the utility of Safemoon as no actual use is a red flag for investors. In addition, since the team focuses highly on devoted customers, they need to improve liquidity for community engagement.
At that, its absolute risk and a highly unpredictable situation ahead. In the next few months, Safemoon tokens can get unexpected heights. But the chances of downfall are also there. So keep all these factors before investing in Safemoon crypto trading.