Introducing Safemoon: A Guide for the aspiring investor

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This year, high-profile figures like David Portnoy and Lil Yatchy have been credited for upsurging the worth of SafeMoon. Although its cost has dropped by nearly 90% from its apex, its involvement was a big factor in why it rapidly appreciated.

When you decide to sell your SafeMoon tokens, a 10% commission per transaction will be charged. As an example, you would pay a fee of $100 if you sold tokens worth $1,000. Don't forget that any additional trading fees from exchanges may also apply as part of this process too!

SafeMoon's developers have devised a tactic that incentivizes long-term cryptocurrency ownership by penalizing selling and rewarding coin holders. “This is an effective approach to limit speculation while encouraging extended coins possession,” announced Sean Heng, vice president of development and operations at CoinMarketCap.

Token users are rewarded with all proceeds from sales as “reflection” through distribution, while the remaining commissions are pooled into a liquidity reserve that SafeMoon uses for steady price regulation.

SafeMoon launched an upgraded version of the token, called SafeMoon V2, in December 2021. The new cryptocurrency is designed to combine the original version by a ratio of 1 to 1000 and substantially lower transaction fees.

If you possess the original SafeMoon crypto, it is important to understand that your tokens will not be migrated automatically to V2. In order to ensure they are ported over correctly, users must transfer their safe moon using the latest version of its platform – V2. Remember: manual migration of your tokens is an essential step if you want them on this new and improved interface!

Updating to the latest version of the SafeMoon app and following the consolidation instructions will convert your ownership from V1 to V2. If you use another type of cryptocurrency wallet, visit the SafeMoon Swap website for consolidation.

If you have safe moon crypto on an exchange, you do not need to take any action; the exchanges will manage the migration and notify you when it is finished.

The new transaction fee for SafeMoon V2 is 2%. In the original version, 50% of the commission was given to current token holders. The remaining half of the sum (50%) is divided between the liquidity pool and managers in the entire SafeMoon ecosystem.

A major challenge faced by first-time buyers of SafeMoon is the need to acquire another cryptocurrency, as it isn't currently listed on exchanges that accept traditional fiat currencies such as US dollars.

Another major setback with SafeMoon is that it's not featured on primary crypto exchanges like Coinbase or Kraken. Robinhood, SoFi Invest and similar companies are also missing this token from their services.

You can easily acquire SafeMoon tokens by swapping them for other popular cryptocurrencies like Binance Coin (BNB). In addition, several cryptocurrency exchanges offer services specifically designed for the buying and selling of this digital asset.

Are you new to the cryptocurrency game? If so, first open an account with a reputable crypto exchange like Forbes Advisor's best options. After transferring your funds from there, withdraw them and send them securely into your wallet before finally sending them over to SafeMoon Exchange.

Because of the high volatility, SafeMoon is a big-risk investment since the price might jump up and down dramatically. You will forfeit your initial investment when selling SafeMoon and 10% of the transaction fee as a commission cost. This applies to any kind of cryptocurrency.

SafeMoon, on the other hand, is not ideal for frequent trading due to its high fees and commissions. Every time you sell, you pay a hefty fee and commission. Furthermore, because SafeMoon isn't listed on any of the major exchanges, it is less liquid, and converting it into cash requires more work since you must convert it first to another cryptocurrency.

According to Jeremy Britton, Chief Financial Officer of Boston Trading Co., SafeMoon is in peril as it is not traded on leading exchanges. “The exchange's research showed that the project didn't have potential,” he commented. Mr. Britton further warned: “By disregarding what experts are saying, you're taking a major risk.”

SafeMoon, like a meme coin, has the potential to go viral, and if it does, its value could rise significantly. Consider what occurred with Dogecoin: In just a few months in 2021, Dogecoin's value increased more than 200 times simply by word of mouth.

You will also benefit from thinking about it because you will receive a share of the commission paid whenever other people sell their tokens if you plan to keep SafeMoon for a long time. That's a financial incentive that most other well-known cryptocurrencies don't provide, where you only make money if the price rises.

SafeMoon's recent 2.0 upgrade not only minimized transaction costs but also made it more appealing to exchanges and other potential applications in the future.

The SafeMoon squad recognizes that the key to their triumph lies in automated liquidity pools. A shrewd contract is utilized to ensure a fraction of the 5% commission created from activities such as swaps and transfers. With this brilliant safeguard, they can bolster continual growth and success!

The Smart Chain project has a considerable supply of tokens, kept in its own pool. When the token reserve reaches 500 billion, they will be converted back into the liquidity pool, creating an influx of capital that wouldn't have been achievable without Automatic LP and SAFEMOON. As such, this ensures that investors rely less on traditional liquidity providers for their source of funds.

It all starts with the smart contract setting a minimum price, drawing in buyers and sellers, as well as assigning them to a Liquidity Pool (LP) accordingly.

To further protect SAFEMOON investors, a 10% tax has been incorporated on sales of the cryptocurrency. This helps keep it as an asset for its owners rather than becoming another speculative instrument subject to manipulation and arbitrage.

Volatility is synonymous with the cryptocurrency market, and SAFEMOON's value fluctuations are a what-you-see-is-what-you-get situation. As such, investors should expect both quick gains and sizable losses.

SafeMoon's swings are almost unheard of. Some have labeled the project a Ponzi scheme, while others have referred to it as a shikoon. Conversely, some refer to it as an outright scam.

This form of cryptocurrency is often referred to as a Ponzi scheme due to its reliance on early users' earnings being sustained by new users paying more than prior ones for the token. And, like with a pyramid structure in a Ponzi scheme, the revenue distribution method is quite similar.

While some other crypto platforms have unstable foundations, SafeMoon provides a robust and dependable alternative for both traders and investors. Its market might be less mature than others, but you can still profit from trading on SafeMoon if you go in with your eyes open.

Some have argued that because the creators of SafeMoon have locked up more than half of their liquidity, there's a greater risk that they might “pull the rug out.”

This is an example of exit fraud in which liquidity is deliberately drawn from the market, leaving investors who own it unable to sell their tokens. SafeMoon CEO John Caroni claims that liquidity is withheld to make the token more secure.

SafeMoon is already being scrutinized for potentially being a Ponzi scheme, but now there's another issue that has come to light.

On the 25th of May 2021, an alarming expose was made by HashEx, a renowned auditing, and consulting firm; they uncovered twelve potential weaknesses in the SafeMoon platform that could potentially put over two million investors in jeopardy.

The audit report will provide a comprehensive summary of all investigations. By conducting an in-depth assessment, this tool will identify and address any security risks with tailored solutions. Furthermore, it will also provide an assessment of the platform’s overall robustness and suggest ways to improve safety measures.

The project comes with several risks, as found in their research, such as:

• A smart contract allows for a safe moon cryptocurrency transfer fee of up to 100 percent;
• Exclusion of carpet pullers from commission payouts. Carpet pulling is a form of financial fraud in which the developer absconds with the money;
• Tokens are temporarily disabled from transferring.
• To make a smart token contract inoperable, send the following command.

According to the lawsuit, the owner of the Safemoon smart token contract is an external account controlled by a particular person.

Our company estimates that the smart contract account is worth $20 million, which will only grow as a portion of transfer fees are continually directed to its owner's account.

If the owner's address is exposed, cybercriminals could threaten them with a ransom of up to $20 million. This represents roughly 15% of all liquid assets and holdings within liquidity pools, meaning that the exchange rate for $safemoon might drastically decline instantly.

Fraudulent activity from an outside SafeMoon account can be catastrophic, as it could potentially drain the liquidity pool and cause developers to be unable to move tokens into that address. Hashem warns us of this dire consequence.

In January 2018, the DeFi100 decentralized finance protocol was uncovered to be a manipulative scam which duped users out of an astounding $32 million.

Safemoon's all-time high price is significantly lower than a dollar at only $0.00001375. Even though this crypto is marketed as a long-term investment, it could take quite a few years to Brooks one cent – let alone one dollar. The meme-themed token is currently #205 on CoinMarketCap, with a market value of slightly more than $2.26 billion and a 24-hour trading volume near $21,700.

SafeCoin is a high-risk, long-term investment, so make sure you have the intestinal fortitude to stomach short-term losses before investing in safe mood cryptocurrency.

According to Britton, even though SafeMoon appears to be a good investment, he isn't sure if it's the correct one for you. “I'd advise anyone thinking about SafeMoon to flee in terror or do their homework and then flee in terror,” he adds.

Don't entirely think about avoiding cryptocurrency, however. It's often a wise decision to exercise skepticism and pick one of the top 20 coins listed on major exchanges or invest in a diversified crypto fund instead of taking any chances with tokens that may become tough to purchase and even more challenging to sell later on.

Ultimately, whether or not SafeMoon is a worthwhile investment boils down to one's individual opinion. If you believe investing in this cryptocurrency is the right choice, it's important to be mindful of the associated risks. Thank you for following and learning with me!