SafeMoon is making a lot of noise in the crypto world. Its extraordinarily successful marketing campaign has made it a cultural phenomenon and marketing success story. SafeMoon recently launched on the Binance Smart Chain (BSC) as an ordinary small market cap decentralized finance (DeFi) token from an unknown development team. This token, however, is the cryptocurrency that the crypto TikTokers and social media influencers always wanted: a legal kind of pyramid scheme.
Investing in SafeMoon
SafeMoon is a divisive topic for crypto enthusiasts. On one hand, SafeMoon is a relatively uninventive coin that attracts the attention of many new crypto buyers for its volatile price swings. These swings have made a few lucky holders look like rich business geniuses while the majority of its traders lose their money in silence.
On the other hand, SafeMoon is an example of a financial system that traditionally shouldn’t be trusted, but because of the trustless nature of Blockchain, SafeMoon is just as trustworthy as any other Binance Smart Chain token. SafeMoon shows the potential for blockchains to host trustless financial systems that anyone can benefit from and access.
It’s hard to call SafeMoon a good idea, but there’s no reason why it isn’t a valid idea that gained a market cap of $2.5 billion with just over 2 million holders in 4 months. No matter what you think about SafeMoon, it’s an extraordinarily successful project but should be treated like gambling for the common investor.
What is SafeMoon?
SafeMoon is a decentralized finance (DeFi) token that rewards its holders by automatically distributing transactions to maintain token growth. When a token is bought or transacted, SafeMoon’s protocol splits 10% of these funds into 3 main categories: liquidity pool acquisition, static reward and a manual burn. This crypto jargon essentially means you earn more tokens by holding SafeMoon while others make transactions. However, this token accumulation doesn’t necessarily mean you will automatically make more money.
All holders receive a 5% static reward from the transaction fees proportional to their holdings. The other 5% of every transaction is converted into 50% Binance coin and 50% SafeMoon tokens to be added to PancakeSwap’s liquidity pool. Finally, the controlled burning of coins decreases the coin supply and incentivizes early investments while the token supply is high. A part of the static reward goes into a burn wallet, which is a crypto wallet that nobody has access to.
The 3 actions of SafeMoon act as an incentive program to develop long-term growth. It might look like guaranteed profit in theory, but when adjusted for the price swings of SafeMoon’s token and the 10% fee you will face at least twice when you buy and sell, earning profit is far from a guarantee.
History of SafeMoon
SafeMoon launched on March 8 on the Binance Smart Chain as a normal DeFi project. During this time, DeFi was the hot topic for crypto investors, and SafeMoon was entering this new market. The name SafeMoon is a play on a viral joke that these smaller coins and stocks with low market cap were greatly undervalued and would actually outperform any other investment and hit the “moon.”
These were investments with little fundamentals that still managed to appreciate in price because of the “meme value” of the coin. The main problem with these speculative investments is that they usually cause intense price swings resulting in people losing their money. So people wanted their investment to hit the moon, but they also wanted it to be safe. Get it? SafeMoon.
Where to Store Your SafeMoon
To access your cryptocurrency investments, you need a piece of data called your private keys.This data is always stored somewhere, whether it be on an exchange, software wallet or hardware wallet. It’s not recommended to store your crypto on an exchange, as exchanges are less secure than storing cryptocurrency in a dedicated crypto wallet.
Best Software Wallet: MetaMask
MetaMask is the most common software wallet because of its integration with decentralized exchanges (DEXs). The MetaMask wallet is easily controlled through its Google Chrome extension, which will automatically connect with exchanges like PancakeSwap and UniSwap. Because SafeMoon is on the Binance Smart Chain, you will need to use a decentralized exchange on its network like PancakeSwap. MetaMask isn’t automatically connected to the Binance Smart Chain network, so you will have to import that manually. Once you are connected to the network, you will connect your wallet to PancakeSwap and swap your Binance tokens for any token on the network, including SafeMoon.
Best Hardware Wallet: Ledger
The best hardware wallet is the Ledger Nano X. This Bluetooth-enabled device stores private keys independently of any 3rd-party interaction. This type of wallet is a physical form of storage, so if you damage or lose the device, your private keys will be lost. In this case, you can still recover your funds using the seed phrase Ledger gives you when you first use your wallet.
SafeMoon Price Movements
Social media and public interest heavily influence SafeMoon’s price swings. After crypto’s bull market gained newfound attention from media outlets, people became interested in it and made any average holder a high return on investment. There wasn’t and still isn’t much public focus around the technology of cryptocurrency, which has made many of these markets a speculative pump and dump rather than an investment in technology. For this reason, it’s important to watch the social ecosystem around SafeMoon because that’s generally what drives its price movements.
Recently, the SafeMoon team has announced the company is developing an app to make it easy to buy and spend your SafeMoon tokens. This app will eventually include a non-fungible token (NFT) market, charity projects and crypto educational programs. After big launches like an app, it’s expected that the SafeMoon team will be gearing up to promote itself as much as it can. In the past, its advertising campaigns have been extremely successful.
Best Exchanges for SafeMoon
Many people looking to buy SafeMoon have a hard time finding where to buy the token. This is because SafeMoon is a very new token and isn’t supported on exchanges just yet. However, it is available to buy through a decentralized exchange with any crypto wallet that connects to the Binance Smart Chain network such as PancakeSwap. To use PancakeSwap, you will need to connect a wallet like MetaMask to the Binance Smart Chain network and purchase the coin on PancakeSwap using Binance coin (BNB).
So, you’ll need to own BNB to invest in SafeMoon. In order to get Binance Coin, you’ll need to make a Binance account.
Holding your SafeMoon in a wallet of your own is the preferred method for many crypto traders. Centralized exchanges are 3rd-party services that allow you to easily manage and trade coins that are held and traded on your behalf by the company. This service automatically handles the more complicated aspects of a transaction that could result in losing that money if otherwise mismanaged. However, being the only one with access to your crypto has security advantages if done correctly.
Binance is the largest cryptocurrency exchange in the world by trading volume. In fact, it tops the ranks of cryptocurrency exchanges maintained by CoinMarketCap, which are ranked based on 24-hour trading volumes, exchange score and average liquidity. Binance triumphs over exchanges like Huobi Global and Coinbase, which follow closely in 2nd and 3rd places, respectively.
Previously based in Malta, the Binance Group is now based in the Cayman Islands. Binance has several locations and entities registered across the globe. In the United States, it’s known as Binance.US. The exchange in the U.S. uses the same cutting-edge technology and trading services as its global counterparts with the difference being U.S. regulatory compliance. It is operated by San Francisco-based BAM Trading Services.
Binance.US ranks 9th on CoinMarketCap’s list of the top 10 exchanges based on metrics like 24-hour trading volume, exchange score and average liquidity. Binance could be a good platform for you to invest in cryptocurrencies if you are a U.S.-based trader who trades frequently, doesn’t intend to pay high trading fees and needs access to a large number of cryptocurrencies.
Best For
- US Citizens
- Frequent day traders
- Users interested in Binance Smart Chain (BSC) and Binance Coin (BNB)
- Low trading fees
- Easy-to-use platform
- Wide selection of altcoins — it offers 51 cryptocurrencies apart from Bitcoin (BTC)
- Good customer service
- High liquidity because of large trading volumes
- Only residents of 43 states in the U.S. can trade on Binance.US. You cannot trade on this platform in New York, Connecticut, Hawaii, Texas, Vermont, Idaho and Louisiana
- Despite the wide selection of altcoins, the number of tokens offered on the U.S. platform is not comparable to the hundreds of choices available on the Binance global platform
- There is no option for telephonic customer support
Is SafeMoon a Good Investment in 2021?
The coin survives on the mentality that has taken over the public narrative of cryptocurrency. Too many novice investors see crypto as this arbitrary investment that will skyrocket your portfolio before you even have your morning coffee. However, this is far from true for the majority of cryptocurrency holders, especially SafeMoon holders.
SafeMoon is set up to reward the few lucky holders who bought, held and sold at just the right time, making it attractive to people who think they can game this system. SafeMoon isn’t illegal in any way and all of the code is open for anyone to look into. If you know what you’re getting into and account for at least 2 10% fees — one when you buy and one when you sell — this is a legitimate coin that could continue to grow if it markets its token successfully.
The most exciting part about SafeMoon right now is the wallet app that the company released a demo for on June 15. Because SafeMoon is not sold on centralized exchanges, new investors who don’t know much about crypto but want to buy a SafeMoon often find it too complicated to purchase.
On top of easily buying SafeMoon through the app, games with prizes incentivize more transactions with your SafeMoon tokens. SafeMoon was able to achieve a $5 billion market cap while still being hard to buy, so offering a simple way to purchase SafeMoon may attract more users.
Barstool Sports is a popular entertainment blog that was mainly responsible for bringing SafeMoon into the crypto spotlight. Also, SafeMoon CEO John Karony’s Twitter account is a good place to stay up to date with the latest SafeMoon news.
It’s incredibly unlikely that SafeMoon could ever reach $1. For this to happen, the SafeMoon team would need to burn most of its token supply. At the current amount of tokens in circulation, it would take more money than there is in the U.S. economy to pump SafeMoon anywhere close to $1.
Benzinga crafted a specific methodology to rank cryptocurrency exchanges and tools. We prioritized platforms based on offerings, pricing and promotions, customer service, mobile app, user experience and benefits, and security. To see a comprehensive breakdown of our methodology, please visit see our Cryptocurrency Methodology page.
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