Spend some time observing crypto on social media, and you’re likely to hear people discuss a cryptocurrency that’s “on its way to the moon.” SafeMoon has established its brand on this well-known turn of phrase, albeit this cryptocurrency is more difficult to acquire and perhaps riskier than other popular cryptocurrencies.
What is SafeMoon?
SafeMoon is a crypto token that was created on Binance’s blockchain technology in early 2021. This community-driven DeFi protocol incorporates the SAFEMOON deflationary utility token. It is based on the Binance Smart Chain and uses the BEP-20 token standard.
Thomas Smith (CBO), John Karony (CEO), Jack Haines (COO), Hank Wyatt (CTO), Jacob Smith (web developer), and Charles Karony (executive assistant) are the project’s core team. According to SafeMoon’s developers, the platform was created to promote long-term investment.
According to CoinMarketCap, SafeMoon is a DeFi project with over 2.5 million holders and over $50 million in locked-in liquidity. It has a fully diluted market capitalisation of more than $1 billion.
How Does SafeMoon Work?
The SafeMoon protocol works around the platform’s BEP-20 SafeMoon token, which uses a combination of auto-liquidity generation and reflection tokenomics to operate. The deflationary mechanism of the token has already burned 400 trillion tokens.
Each SAFEMOON transaction incurs a 10% fee, with 5% of the fee distributed to SAFEMOON holders and the remaining 5% divided in half.
From the split percentage, half is sold into BNB (Binance Coin) through a smart contract, while the other half is instantly paired to BNB and put to PancakeSwap’s liquidity pool.
Through this mechanism, those who hold onto their SAFEMOON tokens are rewarded with static incentives, while those who sell their SAFEMOON tokens are disincentivised from continuous selling. As a result, the token’s price is stabilised and the project’s liquidity is maintained.
What Makes SafeMoon Unique?
SafeMoon distinguishes itself from the competition with the following features:
The static rewards are the 5% tokens paid to SafeMoon owners. The amount distributed is proportional to the volume of tokens exchanged, since the 5% fee is a portion of the 10% transaction fee. This alleviates the negative sell pressure that often occurs when early adopters liquidate their tokens.
This feature implements a SAFEMOON token burn strategy, in which the number of tokens is reduced in order to boost their price and demand.
Automatic Liquidity Pool
SafeMoon has a self-sustaining liquidity pool that collects tokens from transactions in the form of transaction fees and deposits them in SafeMoon’s liquidity pool on PancakeSwap. This provides a solid price floor for the token. It also penalises selling operations, dissuading whales from dumping the token on exchanges.
Apart from the rewards earned by SAFEMOON holders merely by HODLing the SafeMoon token, users can get additional incentives via SafeEarn. SafeEarn is a newly developed decentralised application on the Binance Smart Chain network that enables SafeMoon token holders to stake their tokens (or convert them to SafEarn tokens) and earn more SafeMoon automatically.
How to Buy SafeMoon via CoinSpot
To buy Safemoon in Australia, you must first purchase Bitcoin, Ethereum, or Tether via an Australian cryptocurrency exchange. To begin, we suggest CoinSpot as the best-rated exchange in Australia with a very reasonable fee scheme (you can read our comprehensive CoinSpot review to know more about it).
The following is a straightforward guide to purchasing Bitcoin, Ethereum, or Tether on CoinSpot.
- If you don’t have a Coinspot account, sign up to CoinSpot.
- Fill out your personal information and complete your verification.
- Deposit AUD into your CoinSpot account via any deposit method you prefer.
- Select the ‘Buy/Sell’ page and choose Bitcoin, Ethereum, or Tether tokens before entering the amount you would like to buy.
- Select ‘Buy’ to confirm your purchase and Bitcoin, Ethereum, or Tether tokens will be in your wallet within minutes.
Once you have completed this step, you can transfer Bitcoin from CoinSpot to a decentralised exchange like Pancake Swap to buy SafeMoon. You can also register your interest on CoinSpot to buy SafeMoon. The more people register their interest, tthe sooner CoinSpot considers listing SafeMoon.
Should You Buy SafeMoon?
SafeMoon 1.0 is now being phased out in favour of the newly released SafeMoon 2.0. Many people are asking where and how to get SafeMoon cryptocurrency due to its meteoric rise in popularity and its innovative utility as a financial instrument with potential use-cases.
Despite the objective for stability through fees placed on investors who sell their tokens, SafeMoon is a hyperinflationary currency with significant price fluctuation. This means that depending on each financial circumstance, investors may achieve amazing profits or devastating losses.
As is the case with all digital currencies, investment in SafeMoon is HIGH-RISK and should be considered by investors who understand cryptocurrencies, have carried out extensive research and can afford to lose their stake.
SafeMoon is most definitely not a mainstream investment in cryptocurrency that can be depended upon to establish a nest egg or funding retirement.
Crypto investing is similar to gambling, therefore avoid investing your whole life savings in this asset class. Consult a financial professional if you are uncertain. When you invest in SafeMoon, be certain that the amount you spend is one you can afford to lose.
Is SafeMoon legit?
While the whitepaper does detail a legitimate plan for SafeMoon tokens, there are still several unanswered concerns and allegations of fraud. For example, we have no idea what is occurring with the liquidity pool. That being said, it is always prudent to do your own research and determine for yourself if your investment is worthwhile.
Can SafeMoon reach $1?
Given the volatility of the crypto market, it is hard to predict exactly when SafeMoon can reach $1. The token’s next-best projection indicates that it will likely be worth just a few cents, so you should take caution before investing.
Is CoinSpot a good exchange to buy SafeMoon?
CoinSpot is our #1 recommendation for Aussie investors to buy SafeMoon because CoinSpot fees are so competitive, and its services are of excellent quality. You can easily fund your CoinSpot account by free instant deposits via POLi, PayID, or Direct Deposit (via OSKO), BPAY deposits or cash deposits at Blueshyft newsagents.