Recently I started hearing about this coin called Safemoon. I was wondering what it was, the pros and cons of it, and can you safely go to the moon with this project?
The advantage of Safemoon is the price could rise a lot, it could provide a lot of benefits to the world and you can learn more about the world of crypto. The disadvantage is the price could go to 0 and it’s hard to leave Safemoon because of fees.
Keep reading and I’ll share how Safemoon works, what makes it different than other crypto’s, the pros and cons to it, and how it can bring value to people.
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 pools).
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 was 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 psychological.
I’m not completely against these marketing tactics as long as the coin solves “real world” problems or is attempting to.
Oh, and the number of tokens that were burned is 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
Advantages of Investing in Safemoon
One of the advantages of Investing in Safemoon is that the price could go to the moon. You could get a “huge” return on your investment, but this is a gamble.
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 it’s probably a good idea to do as much research on the team as possible, mostly the CEO John Karony. Here is a link to check out the team that is running this project.
Another advantage of Safemoon is the project could do a lot of positive things for the world and they do want to provide value.
One idea they have is an NFT exchange. NFT stands for Non-fungible token and it means that 1 is unique, such as artwork.
Fungible means they are all the same such as a Safemoon coin.
It’s important to realize that ALL these plans are ideas and are still working on them!
The project 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.
Disadvantages of Investing in Safemoon
One of the largest problems of buying Safemoon is that it’s hard to sell. It’s almost like a gang where it’s hard to get out. How the creators of Safemoon made it difficult to sell the coin is by creating a fee every time someone tries to sell it.
This fee every time someone tries to sell is 10%. 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 token you get rewarded from people that sell 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 out” and 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.