Note: This is not investment or trading advice.
What is SafeMoon?
I'll quote an article I read today on Market Realist:
"SafeMoon is an altcoin that’s been soaring in popularity recently has a deflationary tokenomics model. Essentially, these tokens have a built-in mechanism that destroys a small part of every transaction in that currency. In theory, as more people trade the currency, the supply will continue to get destroyed, which pushed the prices up. This automatic burn tends to be combined with an auto-staking element as well, which means that every transaction will see some of its value distributed to the remaining holders of the said token." - Mark Prvulovic
"For example, SafeMoon has a 5 percent burn rate and a 5 percent auto-staking rate. If you buy or sell $100 in Safemoon, $5 of the token will be destroyed permanently, while another 5 percent will be transferred to the remaining holders. Long-term holders of SafeMoon can watch their wallets automatically keep growing, while available quantities continue to shrink due to the burn rate." - Mark Prvulovic
The SafeMoon model is very interesting and it's similar to a model which Ethereum hopes to follow in the future. Ethereum has an unlimited supply which is a cause for concern in the community, so they plan to fix this by burning tokens used for gas. This will certainly add up and decrease the Ethereum supply, ultimately resulting in a price increase.
In the past 24 hours, a few people I know who have invested in SafeMoon have seen their balances increase without having to lift a finger.
Is SafeMoon legit?
Time will tell. As always, only invest what you can afford to lose. Luckily, at the time of writing this article, you can buy 50 million tokens for about $20, so it's a very low risk, high reward scenario. There are some decent prospects in the overall structure. The way I see it is: If DOGE can serve no functional purpose to society and still be worth 5 cents, then surely this has some room to grow.
SafeMoon's pricing forecast & potential
At the time of publication of this article, the USD price of one SafeMoon token is $0.00000041. Check the current price here. While I would love to say that this will go to $1, it won't. The supply is 616 trillion. The market cap of Bitcoin, the most popular digital currency in the world, is just over $1 trillion. While we do anticipate Bitcoin's market cap to increase over time to hopefully over $10 trillion, we do know that no other cryptocurrency will ever surpass Bitcoin. Based on this, it's unlikely that the price of one SafeMoon will ever be more than $0.0001. If it were to hit this mark, the market cap of SafeMoon would be $61 billion, and potentially a top 5 overall crypto. It's just not feasible with so many better projects out there.
Having said that, the most important question is "Is it possible to make some money by investing in SafeMoon?" The answer is YES. A very small investment of $50 could turn into $10,000+. SafeMoon is very popular right now and is drawing a lot of attention from market research companies. They key is to hold.
NOTE: The figures above are based on the supply never changing. The burn rate of SafeMoon will result in the overall supply dropping, which should only help the price increase.
How to buy SafeMoon
You'll need to buy SafeMoon on PancakeSwap. For easy, in-depth instructions, please refer to this fantastic tutorial video made by Conor Kenny. It is very high quality and he created it just at the right time.
Before watching his video, here is what you'll need:
- You'll need to have some BNB which you bought somewhere. For Americans, BNB is not readily available to us on major exchanges like Coinbase, Bittrex, Voyager, Kraken or Gemini, so you'll need to use one of the following:
- Trust Wallet - Download it from the app store if you haven't already
NOTE: Set your slippage to 11%-15%. Conor recommends 2% but that won't work.
That's it, enjoy and good luck!