Things are changing fast in the cryptocurrency arena.
A few weeks ago, thanks to the enthusiastic comments of Elon Musk and Mark Cuban, Dogecoin was the most popular alternative currency. Today, however, Dogecoin has fallen back a little after its tremendous run. Meanwhile, traders have turned their attention to the latest token in vogue: SafeMoon.
SafeMoon had a wild April. It soared as high as 2,000%, reaching $0.0000130 at one point. However, it has fallen by around two-thirds from its peak to around $0.000006 today. With such price volatility, it's not surprising that traders have been quick to find a way to buy SafeMoon to profit from the fluctuations.
As SafeMoon has gained momentum over the past month, it is not yet listed on major cryptocurrency exchanges such as Coinbase (ticker: COIN). In fact, so far there are two main sources of SafeMoon trading. Here's what potential crypto investors should understand:
What is SafeMoon?
How to buy SafeMoon.
Should you buy SafeMoon?
What is SafeMoon?
What makes SafeMoon unique?
This alternative asset has a smart strategy for rewarding long-term owners. Clayton Moore, CEO of NetCents Technology (OTCMKTS: NTTCF), a crypto-currency payment processing platform, explains, ‘Unlike most other crypto-currencies, SafeMoon penalises investors who sell it by charging a 10% exit fee. Half of this fee is redistributed to all SafeMoon holders, while the other half is burnt. The company promises to implement a burn strategy that is beneficial and rewarding for holders in the long term.’
In theory, this will work like a supercharged share buyback programme. If all goes to plan, SafeMoon owners will see their stakes increase over time as the exit fee is gradually redistributed to the remaining token holders. Meanwhile, the burn – which works like a share buyback programme – will decrease the overall amount of existing SafeMoon tokens over time.
Buying SafeMoon
The main way to buy SafeMoon is through PancakeSwap.
PancakeSwap launched last autumn and acts as an automated market maker. It is a decentralised finance application (DeFi). It can be used for a wide variety of trading operations. As well as providing liquidity and cultivating returns. SafeMoon's official Twitter account publishes a video tutorial on how to buy SafeMoon using PancakeSwap.
Users must first purchase Binance tokens. These are placed in a wallet that supports the technology. SafeMoon's backers suggest that MetaMask and Trust are two good options. From there, traders can exchange Binance tokens for SafeMoon on the BSC network.
The BitMart exchange is another good option. It listed SafeMoon on 5 April, before it really took off, and so has established decent liquidity for the token too.
Should you buy SafeMoon?
So that's how to buy SafeMoon and why it has attracted so much interest from traders so far – but is SafeMoon a good investment?
The project has been the subject of much criticism. Prominent crypto thought leaders on social media have criticised the currency, comparing it to the infamous Bitconnect Ponzi scheme.
Moore shares this sceptical tone. While he finds some positives to SafeMoon, on the whole he is cautious. ‘Some experts have compared SafeMoon to a multi-level marketing system, designed to make only certain players rich. Also, I think it's definitely alarming that it's been reported that SafeMoon's CEO owns more than 50% of the cash,’ says Moore. Although these funds are locked up, it's still worrying to see such centralisation of ownership of the coin.
