After listening to different people that are into crypto I started hearing about a coin called Safemoon and was wondering what the pros and cons of buying it.
What the Heck is Safemoon?
Safemoon is a decentralized finance token or DEFI for short. DEFI is finance that is decentralized on a blockchain. Anything with banking can be done with crypto.
Safemoon does have liquidity pools. The only way for a decentralized exchange to work is it needs a pool of money to draw from (liquidity pool).
When it comes to the supply of Safemoon there is a TON. The original amount of tokens that were created were 1 quadrillion tokens.
The “whole” point of creating so many tokens were to constantly BURN them.
Out of the gate the developers burned 223 trillion coins. This “sounds” like a lot of money, but since each token is worth $0.000003 USD it’s not.
The developers behind Safemoon probably destroyed $5. Ok maybe a little more, but the point is that it’s pschological.
I’m not completely against these marketing tactics as long as the coin solves “real world” problems are is attempting to.
Oh, and the amount of tokens that were burned are advertised on their website.
This means that the burn will be manually executed by their team and that the conditions can be tracked and advertised to the owners. The central part of their method for burning tokens is to keep owners engaged in the long term. This is done by rewarding them for holding their tokens.
Safemoon is a cryptocurrency that launched in March. The original supply was one quadrillion tokens, but the developers burned (destroyed) 223 trillion. That left a launch supply of 777 trillion
Pros of Investing in Safemoon
One of the pros of Investing in Safemoon is that the price could go to the moon. You could get a “huge” return on your investment.
How likely this will happen (nobody knows).
The first place to start is with the whitepaper (which nobody reads). You can view the whitepaper of Safemoon by clicking on the link HERE.
Also do as much research on the team as possible, mostly the CEO John Karony.
Another pro that could happen if you invest in Safemoon is the project could do a lot of positive things for the world.
They do have some ideas on providing value to the world. One idea is a NFT exchange. NFT stands for Non fungible token and it means that 1 is unique, such as art work.
Fungible means they are all the same such as a safemoon coin.
Safemoon is also planning on creating a video game, helping out developing countries and charities. Lastly, they are talking about doing education for crypto.
The third benefit I can think of is you will learn more about the world of crypto. One of my favorite sayings is…
Sometimes it does help to buy something and then learn about it because you have skin in the game. It’s a different education than just reading about it.
Cons of Investing in Safemoon
One of the largest cons of buying Safemoon is that it’s hard to sale. It’s almost like a gang where it’s hard to get out. How the creators of Safemoon made it difficult to sale the coin is by creating a fee everytime someone tries to sale the currency.
There is a 10% fee everytime someone sales the coin. You might be wondering where does the 10% fee go?
Half of the 10% fee goes to the people who are still holding the coin. If you hold the coin you get rewarded for people that sale it.
The other 5% goes to buy BNB coin and the other half goes to add liquidity on Pancake Swap. Pancake swap is another liquidity pool that allows people to swap coins.
You can leave the Safemoon gang, but they jump you take 10% of your money then give half of that to the people still in the gang.
Even though the name is called safemoon I’m not sure it’s going to deliver you safely to the moon.
Another con with safemoon is what problem does the coin solve? In the future they have ideas of providing liquidity to people in developing countries.
They also plan on creating a video game with the token. Lastly, they plan on intruding an NFT exchange and charity drives.
The last con, which I have to mention is the price could go to 0. You can lose “all” of your money, but to be fair you can lose all of your money with any investment.
The truth is the smaller the project the higher the risk.
Safemoon is currently on 10 exchanges and they are all “very” small exchanges. Buying safemoon you could say is similar to buying a penny stock (high risk and high reward).
How Often Does Safemoon Burn Coins?
Safemoon will have manual coin burns whenever the developers feel like burning coins.
The white paper doesn’t explain when these safemoon burn events will happen. At the time of this blog post Safemoon has burned 419 trillion coins.
Safemoon started with 1 quadrillion tokens and out of the gate they burned 223 trillion coins. The developers have burned tokens at least 2 times.
Nobody knows (except the developers) when more coins will be burned. It’s also possible that NO coins will be burned.
It all comes down if the team that created Safemoon wants to burn more. Maybe the price starts to get low, they will just burn some.
Maybe burning the coins, makes them feel rich.
When it comes to the world of crypto there will always be some people who think it’s a scam. I used to think everything related to crypto was stupid.
The world is MUCH bigger than my ego. I swallowed my pride and learned as much as I can. I’m happy I did and have made a good amount of money in the crypto world.
I’m not sure if Safemoon is a good investment or not and honestly I don’t think anyone knows. The only thing that will tell you is time.
All you can do is do as much research as you can and go with gut instinct.
I hope this blog post on the pros and cons of investing in Safemoon was helpful. Bye for now.