Safemoon (SAFEMOON) Crypto Review 2024: A TOK Guide

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Dernière mise à jour à 07:02:05 UTC
Fully Diluted Market Cap
€ 190,085,786,248.51
Circulating Supply
561,957.62B SAFEMOON

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Safemoon is one of the emerging cryptocurrencies with huge potential right now. Yet, will crypto fulfil it? Follow this review and have the answers delivered to you.

As cryptocurrencies attract more and more investors, many projects are emerging each year. Are they all reliable and worth the investment? How much can a crypto investor expect to earn, and what are the risks of loss? The project details, history, and partnerships are analyzed to answer all these questions. 

We analyze these factors for Safemoon crypto (SAFEMOON), which has experienced a remarkable rise in popularity. In this opinion on SAFEMOON, we introduce you to the history, objectives, and prospects of the future of crypto Safemoon.

safemoon crypto

What is Safemoon (SAFEMOON)?

The adventure of cryptocurrencies began at the same time as that of blockchain technology. The assets are systematically linked to blockchains for Bitcoin, Ethereum, or other significant cryptos you can find in the best crypto platform guides. But these continue to develop, providing constantly improving functionalities. 

Thanks to these functionalities, generating entirely new crypto projects based on existing blockchains has become possible. Launched in 2021, the Safemoon crypto (SAFEMOON) fits into this context. In the remainder of this Safemoon review, you will discover the implications of such an operation.

Safemoon, therefore, belongs to the category of cryptos generated on a third-party blockchain. As a cryptocurrency and DeFi protocol (decentralized finance), Safemoon is mainly deployed on the Binance blockchain, BNB Chain. Safemoon comes from the terms “safe” and “moon.” 

The expression “to the moon” is widespread among crypto investors to evoke the meteoric growth in the value of an asset. The founders place themselves precisely in this position, considering that the crypto Safemoon, also called crypto SFM, will experience a remarkable evolution. In this logic, they encourage investors to keep their assets as long as possible. This incentive policy has mainly used social networks; the latter has largely boosted the popularity of Safemoon.

Binance

  • Low fees
  • One of the largest crypto exchanges
  • Fee discount for using native BNB

The History of Safemoon Crypto

In March 2021, Safemoon crypto (SAFEMOON) was launched to the market by a team of blockchain and cryptocurrency enthusiasts. At their head are, among others, CEO John Karony and Chief Technical Officer (CTO) Thomas Smith. The founders of Safemoon (SAFEMOON) had the clearly stated objective of launching an ecosystem favorable to community involvement and encouraging the holding of tokens over the long term.

John Karony and his team use various methods, including intensive and aggressive marketing, to realize their vision. Most social networks, particularly Twitter, serve as relays for popularizing Safemoon. Very quickly, crypto investors and cryptophiles became interested in crypto SFM. Its market capitalization is multiplying, almost at the same rate as its fame.

Critics quickly rise in the face of this policy, which seems only to invite people to buy Safemoon (SAFEMOON). For some detractors, with relatively solid arguments, this ultra-incentivizing economic model potentially hides a pump-and-dump strategy. This strategy consists of increasing the value of an asset purchased at a low price based on incentive communication to resell it at a significantly higher value: inflate and dump.

Some suspicions also point to similarities with a Ponzi scheme. The project is generally criticized for lacking intrinsically valuable technologies outside the Safemoon ecosystem. The launch of the Safemoon Wallet brings a more technical dimension to the project, but the criticisms do not disappear.

safemoon crypto

In December 2021, Safemoon launched a V2, this time notably deploying on the Ethereum blockchain. This migration to a new contract address led to an update of the price, the volume in circulation, and even the total number of tokens. However, the update has caused even more confusion among investors. Likewise, the new data announced by the team has not been able to be fully verified.

Why was Safemoon Crypto designed?

For John Karony and his collaborators, the crypto project they are designing must solve problems specific to the crypto market. Thus, Safemoon starts by drawing inspiration from specific inadequacies/flaws observed in the market. For example, most investors in cryptocurrencies are primarily engaged in short-termism. 

Furthermore, the volatility observed in the crypto market is generally too accentuated, much more than in stocks. The launch of Safemoon, therefore, aimed to correct the volatility problem. The Safemoon (SAFEMOON) crypto project team also wanted to establish a stable and sustainable ecosystem to promote the long-term holding of cryptos.
The creators of SFM first developed the Safemoon crypto on the Binance BSC blockchain, intending to benefit from a less expensive solution than the Ethereum blockchain. Even if it is widely used and is more costly than the BNB Chain or Binance Smart Chain, it is slower. The BSC allows the Safemoon team to implement various mechanisms. The latter redistributes assets to SAFEMOON holders while governing taxes on transactions.

Bitbuy

  • Regulated platform
  • Suitable for beginners
  • Not available in US

How does Safemoon (SAFEMOON) work?

To achieve the objectives they have set for themselves, the creators of the SAFEMOON crypto have defined several mechanisms.

The reflection protocol

The first mechanism is that of the reflection protocol. This is undoubtedly the primary function of the SFM ecosystem. This is what implements the taxes of around 10%, applying to any transaction involving the SAFEMOON token. The 10% retained is intended for two purposes: 5% of tokens go to all Safemoon holders, and 5% of tokens (partly LP tokens or liquidity tokens) strengthen market liquidity and contribute to stabilization.

The 5% distributed to SAFEMOON holders is distributed according to the number of tokens each person holds. The reflection protocol thus represents the reward mechanism for holders of the Safemoon crypto. It also maintains a high level of liquidity that can cover transaction needs and reduces the degree of volatility. The second half of the fee is converted into BNB and then added to the Safemoon/BNB liquidity pool.

LP generation and liquidity lock-in

The second key mechanism that determines how SAFEMOON works is the liquidity lock. The Safemoon system locks part of the liquidity to protect investors’ funds. In doing so, the creators of the crypto wish to gain the trust of crypto investors who have purchased SAFEMOON. In theory, acquiring LPs and locking them in helps protect the ecosystem against rug pulls. Developers should, therefore, only be able to withdraw liquidity from the market once.

The burning

Finally, like many other cryptos, Safemoon has adopted various burning mechanisms. The burning of tokens consists of an operation to reduce the supply of tokens in circulation gradually. As soon as Safemoon was officially launched, a specific volume of tokens had already been burned. Subsequently, as transactions are carried out, a burning automatically takes place. This process induces a scarcity of tokens, thanks to which their value is likely to increase.

The operation described here corresponds to the leading network hosting the project. However, since migrating to V2, the Safemoon crypto is compatible with the Ethereum and Polygon blockchains. Additionally, with the move to V2, four functions run on each transaction:

  • 4% go to the reflection protocol;
  • 3% goes to acquiring LP tokens;
  • 2% of tokens are burned;
  • 1% is added to the Safemoon ecosystem expansion fund

Where to buy Safemoon (SFM)?

A direct purchase is generally possible via exchanges for cryptos whose projects guarantee reliability. As for cryptocurrencies that have not yet won the confidence of the markets, it does not matter whether they are derivative tokens or native assets of blockchains. You will often have to buy another crypto (Bitcoin, Ethereum, Tron, Shiba Inu, etc.) to convert to obtain the crypto you are looking for. This is the case for Safemoon (SAFEMOON) because most marketplaces and exchanges allowing the direct purchase of cryptos have yet to list Safemoon (April 2023).

Pancake Swap to get SAFEMOON

safemoon crypto

PancakeSwap is a decentralized exchange operating primarily on the Binance Smart Chain. As the Safemoon crypto is built on the identical blockchain, its compatibility with this platform is guaranteed. Launched in 2020 by anonymous developers, this DEX (decentralized exchange) is appreciated for its low fees and the control it offers you over your assets.

Portfolio creation

Create a wallet compatible with BSC. You can independently opt for Trust Wallet or Metamask, depending on the features you are looking for. Ensure you maintain your wallet information (recovery phrase and private keys).

Direct purchase of Binance Coin (BNB)

Go to Binance, Coinbase, Kraken (see review), another exchange, or even a marketplace and get some BNB. Then, transfer your BNB to your wallet.

PancakeSwap

Sign up now at this decentralized exchange, which supports tokens on the Binance Smart Chain.

Wallet connection – Pancake Swap

Link your crypto wallet to Pancake Swap. On Trust Wallet, you need to go through the DEX browser. In MetaMask, you can go to the network settings and add the BSC network.

BNB Exchange – Safemoon

On PancakeSwap, go to the section dedicated to exchanges and choose BNB as your source crypto. On the target asset configuration line, select Safemoon. Enter the number of BNB you want to trade, review the details (fees, etc.), and then confirm the transaction. Your SAFEMOON tokens are now in your wallet.

Buy Safemoon on BitMart

safemoon crypto

BitMart is one of the few centralized exchanges to support Safemoon crypto. For investors with little experience, using such a platform simplifies the Safemoon purchasing process. In particular, they can deposit funds in fiat currencies into their BitMart account. They can then buy BNB or USDT to trade against SAFEMOON. At the same time, it is also possible to transfer cryptos (USDT or BNB) directly from another platform to BitMart before carrying out the exchange.

Uniswap

  • A top decentralized exchang
  • Integrates the BNB Chain
  • High liquidity

WhiteBit

This centralized exchange also includes Safemoon among the cryptos eligible for trading. It is appreciated for its transparency (the platform communicates openly about its activity) and ease of use. To purchase Safemoon on WhiteBit, create your account, then complete the identity verification step. Then, deposit funds to purchase USDT or transfer funds from another wallet. Finally, open a Safemoon/USDT buy order.

Safemoon Fear and Greed Index

Updated:: 22 February 2024

Now: 74 Greed

Now: 74 Greed

Yesterday: 69 Greed

Last Week: 79 Extreme Greed

Is buying SAFEMOON crypto a good investment in 2024?

For most cryptos, making accurate predictions is often complex. This is the case with speculative cryptos, as some categorize Safemoon. However, considering the numerical data allows us to get an idea.

In March 2021, V1 started at 1.10^-12 US dollars before peaking at 0.00001118 USD on April 21, 2021. Subsequently, doubts expressed in the market led to a slow regression despite a slight return to a peak (6,235.10^-6 US dollars in October 2021). At the launch of V2, 1 SFM was worth $0.00162.

Safemoon’s price in USD is $0.00012691, as seen on the Safemoon chart on Trading View. Given this data, what will happen next for the Safemoon crypto? What is the Safemoon forecast? What would become of Safemoon’s value? Will Safemoon go up? Will Safemoon recover to its former heights or plunge further?

For many analysts, the prediction for Safemoon is that it has the potential to reach $1 per unit for around ten years if it does not collapse before then. But the cryptocurrency market (see prices) knows how to reserve surprises! Any scenario remains possible as far as Safemoon’s future is concerned.

Three reasons to invest in Safemoon in 2024 

These are three reasons to invest in Safemoon in 2024:

  • The taxation – redistribution-burning mechanisms are favorable to long-term profit growth.
  • The Safemoon crypto team remains very active on social media.
  • The current low value of SAFEMOON may be conducive to purchase to store it for the long term.

Two reasons not to invest in Safemoon in 2024 

These are two reasons to not invest in Safemoon in 2024:

  • The project is still too young, needing more resources for its technologies and reserve funds.
  • Many criticisms surround the Safemoon crypto, particularly regarding its reliability.

Our Final Opinion on the Safemoon Crypto (SFM)

The mechanisms behind how Safemoon crypto works make it an exciting project. It promotes cryptocurrency market stability and long-term holding. However, apart from the SAFEMOON asset management ecosystem, applications seem separate from the project. It is certainly compatible with other projects based on the Binance Smart Chain.

But overall, analysts need help finding any actual use for it. Inclusively, facing fierce competition in the DeFi sector, it has yet to rise among the flagship cryptos. It is, nevertheless, a young project (launch in 2021). Over time, it could improve and better meet the demands and expectations of investors and the market. Fans of long-term HODL will undoubtedly see this as an opportunity to be considered. The accusations assimilating the SAFEMOON crypto to a dubious initiative must still be considered and encourage you to be cautious.

Coinbase

  • Regulated exchange
  • An easy-to-use platform
  • Free crypto training offered

FAQs about Safemoon

Is Safemoon a reliable crypto?

For the moment, there is still too little data to provide a precise answer to this question.

Is Safemoon also a blockchain?

No, Safemoon is not a blockchain. It is a cryptocurrency that is built on the BNB Chain blockchain.

Are my funds protected if I buy Safemoon?

You must acquire your SAFEMOON tokens through secure platforms. Only this precaution guarantees you, on the one hand, the security of your funds. On the other hand, consider the criticisms against the project; risks of rug pull are not excluded. Therefore, consider this in your investment decisions.

Are the creators of Safemoon known?

The leading names associated with SAFEMOON crypto are John Karony (Chief Executive Officer), Thomas Smith (Chief Technical Officer), Trevor Church (Community Manager), and Jack Haines-Davies (Chief Operating Officer). They were only known once their identities were verified as Safemoon founders.

How to invest in Safemoon?

Register on an exchange, then buy famous cryptos (BTC, SHIB, USDT, etc.), which you convert to SAFEMOON. You can store your SFM tokens in any wallet.

How many Safemoon tokens can you buy with $100?

Right now, investing $100 gets you around 20,796,582,744 SAFEMOON.

Can I buy Safemoon with fiat currency?

Currently, no platform allows tokens to be purchased via credit card or bank transfer. You may only purchase through a third party, whom you will pay via an agreed means and who will transfer SAFEMOON tokens to you. However, be vigilant!

What is the value of Safemoon stock price?

Safemoon is not a stock, so it has no stock price. Instead, it is a cryptocurrency.

What is Safemoon staking?

Safemoon staking is a process wherein SAFEMOON holders can earn rewards by HODLing their coins in a wallet and engaging in the network’s consensus algorithm.

About the author

Tobi Amure

Tobi began his career in 2017 as a crypto writer, where he focused on producing educational content. He worked with Stockbossup, an investment platform dedicated to educating black people. Prior to that, he worked as a copywriter with Turboxbt, a crypto trading platform. In 2021, Tobi joined Watcher Guru as a crypto news editor. He was recognized as one of the top 333 web3 creators on LinkedIn for crypto in 2022.