SafeMoon is one of the newest and fastest-growing cryptocurrencies. Here's how it works and how to buy it
SafeMoon is one of the newest and fastest-growing cryptocurrencies, even in a market that’s recently seen Bitcoin reach record-high values and even the tongue-in cheek Dogecoin growing by over 8000%.
Even so, SafeMoon is a most unusual digital currency, as it imposes a penalty on anyone who tries to trade their coins (or “tokens”). Only a few weeks old, its sheer newness also might lead some potential crypto buyers to see it as an unknown quantity. So, here’s everything you need to know about SafeMoon, and how you can buy the fledgling currency for yourself.
What is SafeMoon?
SafeMoon is an altcoin: a blockchain-based digital currency broadly similar to Bitcoin, but with some clear distinctions as well. It launched in March 2021 and has already racked up over 1 million users.
SafeMoon’s unique feature is that it charges a 10% fee to anyone who sells their tokens; 5% of this fee is then redistributed to all other SafeMoon owners, essentially rewarding those who hang onto their tokens and disincentivizing selling.
One criticism of cryptocurrencies like Bitcoin is how they’ve strayed from their original goal of providing a working, decentralized currency to simply become investable commodities; it’s not clear what, if anything, you’ll actually be able to buy with SafeMoon, but the selling fee is at least encouraging owners not to just buy and sell their tokens for now.
SafeMoon could also be seen as a more serious take on Dogecoin, the tongue-in-cheek altcoin with an unofficial rallying cry of “To the moon” — SafeMoon’s slogan is “Safely to the Moon.”
Like Dogecoin, SafeMoon is worth a lot less than Bitcoin or Ethereum per-unit, but has been climbing in value. Coin Market Cap currently has each token at $0.000005, less than half its peak from earlier in April but a sharp increase from its $0.0000000010 launch value.
As such, it’s already attracting attention from potential investors looking to get involved while SafeMoon is still cheap — despite the selling fee.
Is SafeMoon safe?
Cryptocurrencies are often highly volatile, and on current evidence SafeMoon doesn’t look to be much different: even as its value grows it’s still prone to big slides, one of which already occurred in April.
While that’s par for the course with a lot of investments, SafeMoon has also been compared to a Ponzi scheme, as any profits you could make in future are based on someone paying more for the tokens than you did further down the line. The selling fee and redistribution model could also be said to encourage early adopters, who would then gain the most from subsequent sales.
Cryptocurrency investor and influencer Lark Davis warned against SafeMoon on Twitter, saying, “Remember just because you make money off of a Ponzi does not change the fact that it is a Ponzi.” Davis also compared SafeMoon to BitConnect, a cryptocurrency that shut down in 2018 after two U.S. state-level securities regulators publicly warned investors of its similarities to a Ponzi scheme.
WarOnRugs, an anti-scamming collective focused on cryptocurrency, has also criticised SafeMoon’s owners for locking away more than 50% of its own liquidity pool. The group claims this could result in a “rug pull,” a form of exit scam whereby liquidity is intentionally drained from a market, leaving traders unable to sell. SafeMoon CEO John Karony maintains that liquidity is held to make the currency more secure.
How do I buy SafeMoon?
If you’re willing to take the risk, then you can buy SafeMoon from one of four crypto exchanges: PancakeSwap, BitMart, WhiteBit and Bakery Swap. It’s a more complex process than simply buying a currency like Bitcoin, though: you basically need to buy Binance coins, another cryptocurrency, then swap them for SafeMoon.
To use PancakeSwap, for instance, you first need to download the Trust Wallet app, then buy Binance coins (either BNB or BSC) and add them to the wallet. You then visit PancakeSwap through the Trust Wallet app, find the SafeMoon page and swap your Binance there.
A dedicated SafeMoon wallet is in the works, so hopefully this will simplify the process. Just remember that using cryptocurrencies as investments is risky at the best of times, and in the end it’s your own money on the line.