With the its rising popularity, SafeMoon investors speculate about the legitimacy of the crypto
With the large amounts of cryptocurrencies available in the market today and more getting added daily, it might be challenging for investors to know which ones to research and invest upon. Popular coins like Ethereum, Bitcoin, and Solana, to name a few, have taken the financial market by storm, with massive valuations. But not all digital currencies will be successful. Many cryptos have failed, and some are scams. Recently, SafeMoon has emerged as a hot topic among investors. It is one of the newer cryptocurrencies that hit the market in March 2021 as a community-focused decentralized token to challenge popular cryptocurrencies like DOGE and Shiba Inu. SafeMoon quickly became a frenzy of interest within a month of its launch. In a matter of days, the SafeMoon price shot up 7000%. But many critics believe that it is a scam or a Ponzi scheme. Undoubtedly, its newness has driven investors to think is Safemoon a good investment or not. In this article, we have listed 5 Safemoon pros and cons for you to determine if it is a worthy investment for 2022.
- Valuable meme crypto brand: The most valuable aspect of SafeMoon currently is its branding. To stand out at the top of the crowd, large cryptocurrencies have developed a cult-like following in social media, which has helped the crypto companies to build their company brands. Since its inception, SafeMoon has been constantly trending on social media and poses serious threats to major cryptos.
- Is supported by high-profile influencers: Without the support of unique features or technological implications, endorsements from high-profile celebrities like Dave Portnoy have helped SafeMoon to gain massive popularity. But to gain more legitimacy in the market, the crypto needs more such endorsements from celebrity influencers.
- Manual burn feature:Most cryptocurrencies undergo a process called token burning, which permanently removes the token from circulation. But SafeMoon employs manual burns instead of continuous burns. The argument is that this process might prove profitable for long-term investors. It allows the burn to be announced and tracked publicly, promoting increased transparency.
- Is a source of passive income: SafeMoon was created to incentivize long-term investing and punish selling. Every SafeMoon transaction incurs a 10% fee. 5% goes to SafeMoon holders and the remaining 5% splits with Binance Coin, added to PancakeSwap’s liquidity pool. SafeMoon investors can gain passive income through these incentives, but they have to pay 10% fees if they want to sell.
- SafeMoon is inexpensive:This aspect of SafeMoon might be an outstanding advantage for new investors. Also, interested buyers who are still unsure about its legitimacy can invest small values instead. Also, there are chances that SafeMoon price may literally hit the moon in the future!
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- SafeMoon’s centralization: As a BEP-20 token, it uses Bianance Smart Chain to secure its network. The Binance Smart Chain is handled by the Binance exchange, which itself selects the validators used to approve the transactions for insertion into the blockchain. This makes SafeMoon a more centralized token than Hive, which uses the delegated proof-of-stake (DPoS), where validators are selected by community votes.
- Has no utility:No major vendors accept SafeMoon as a means of payment. Also, it is difficult to use the crypto for trade for fiat currencies since it is not traded in any major crypto It also does not have any technological advantage like other cryptos in transaction speeds, security, or any other feature.
- Penalties: Investors are aware of the fact that it is better to hold rather than get in and out of the investments whenever there are signs of vulnerabilities. One of SafeMoon’s outlining characteristics is the imposition of a 10% fee for selling SafeMoon. The motive is to encourage holding, but many investors will perceive it otherwise.
- Is volatile and lacks liquidity: SafeMoon is exceptionally volatile, but so are other meme altcoins. This lack of liquidity leads to significant price swings. Adding to these issues is the fact that the crypto is not listed in any major cryptocurrency exchanges.
- Availability:Since SafeMoon is a BEP-20 token, the fact that the crypto has deployed the Binance Smart Chain makes it difficult to invest in. The only platforms where the crypto is available are the DeFi platform PancakeSwap and BitMart.
Choosing to invest in SafeMoon is a decision that investors should make themselves, depending on the number of risks they are willing to take. The success of SafeMoon depends on Binance, the developer team, and its growing community.
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