What Is Safemoon?
Is Safemoon Legit? Let’s start breaking it down.
Not a huge amount is known about Safe Moon meaning the risk to your investment may be even higher.
Technically it’s not a cryptocurrency – it’s an DeFi token – according to it’s website.
DeFi stands for decentralised finance token. They are very complex but essentially aim to disrupt the finance world to enable people to follow and lend in peer-to-peer networks, without needing a bank.
Like Bitcoin they use a complicated method called blockchain technology. Is Safemoon Legit? Keep reading
5 Risks of Safemoon/ Crypto Investments
THE Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on crypto assets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in crypto assets, combined with the inherent difficulties of valuing crypto assets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to crypto-assets can make it hard for consumers to understand the risks. There is no guarantee that crypto-assets can be converted back into cash. Converting a crypto asset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
…More About Safemoon Token
Safe Moon claims it will reward people who buy and hold onto the cryptocurrency. Those who sell the currency will be slapped with a penalty. Its Facebook page states: “Remember, getting to the moon takes time and the longer you hold the more tokens you pick up.”
SafeMoon charges sellers a fee worth 10% of the amount of the cryptocurrency they are flogging to buyers. It then claims to reward investors that hold onto their purchases by redistributing 5% of the cash gained from the penalty charge among those who already have the currency.
These multi-level marketing tactics mean require more buyers to keep buying to keep the price up, making it a very risky investment. As always you should never invest any money that you aren’t prepared to lose. Safe Moon recorded a 99% rise on Sunday after Bitcoin had its biggest single-day drop for months.
It comes after Dogecoin’s price increased 91% in 24 hours after Elon Musk tweeted about the cryptocurrency – and a 20,000% increase from this time last year. The cryptocurrency, which started as a joke, has risen 365% in the past month to close to 20p per unit. It comes despite the currency not being listed on any cryptocurrency exchange platforms. Is Safemoon Legit? Still don’t know yet? Keep reading!
Is Safemoon Legit?
DeFi token SafeMoon (SAFEMOON) has surged over 130% in the past 24-hours, and over 2900% in three weeks, drawing interest from a variety of investors in the crypto space.
What Happened: The newly launched protocol aims to build rewards for people who hold their tokens for a longer time and penalize those that choose to sell quickly. SafeMoon charges sellers a fee of 10% of the amount that they choose to sell while rewarding those who still hold the cryptocurrency with 5% of the seller’s fee.
The DeFi protocol is also gearing up to launch an NFT exchange, for which it has claimed to have raised $700,000 from donors for the project. According to SafeMoon CEO Johnny Karony, the exchange would extend the concept behind SafeMoon to other cryptocurrencies as well.
“Users holding on our platform will receive static reflection through all transactions, meaning when you hold your BTC, or Bitcoin, you will receive more Bitcoin,” he explained in a video.
So far, the protocol has managed to acquire over 600,000 holders of SafeMoon tokens based on the data shared on its website.
Why It Matters: At the time of writing, SafeMoon’s crypto token is only available on WhiteBIT, BitMart (BMX), and decentralized exchanges like PancakeSwap (CAKE).
Amidst calls from the SafeMoon community for Binance and other top crypto exchanges to list the cryptocurrency, reports have also emerged that the sharp increase in price may have been the result of a concentrated effort by a group of retail traders.
A pseudonymous crypto trader called “Venizo Crypto” brought attention to a large trading group that had recently pumped the price of DOGE by over 200%, which had now turned its attention towards SafeMoon.
The discord group called “Big Pump Signal” seeks to pump cryptocurrency prices in a “controlled manner.”
The process of doing so can boost the coins by more than 50%, stated the admin.
So, there you go, you shouldn’t have the “Is Safemoon Legit” question again after reading this post.