In the ecosystem of cryptocurrencies and blockchain, there are fortunately many serious projects. But is SafeMoon one of them? The best known are probably Bitcoin (BTC) and Ethereum (ETH). Others are much less known, but just as serious, such as Ecomi that we presented for example.
There are also more “wacky” projects, such as Dogecoin (DOGE) or Shiba Inu (SHIB). But there are also “Red Flag” projects, in other words potential scams.
This is for example the case of SafeMoon (SFM). Indeed, in our opinion, SafeMoon is a scam. But as the project attracts many investors, we felt compelled to introduce it, explain why it is successful, and why we are rather reserved about it. What is SafeMoon Cryptocurrency (SFM)?
SafeMoon is a cryptocurrency launched in March 2021. It has the particularity of rewarding those who keep their cryptos, to the detriment of those who sell them. Very quickly, SafeMoon aroused the interest of many investors and its price exploded just one month after its launch (SafeMoon price available here). But the April 2021 price has never been reached again since, and is only decreasing in general trend.
In our opinion, it is a purely speculative cryptocurrency, a bit like doge or SHIB, which could then be described as fanciful.
However, the SafeMoon project has sniffed out what many investors have been waiting for: the reward of the famous HODLers! Thus, there is no longer any need to place your tokens in staking or other, it is enough simply to hold them to get the rewards.
Staking is a way to generate passive income with cryptocurrency. It is a question of participating in the Proof of Stake mechanism by immobilizing its crypto currencies in order to participate in the validation of the transactions of the blockchain networks using this validation consensus.
This is the reason why SafeMoon quickly exploded, as it attracted many HODLers who were just waiting for this. The team has also done everything to communicate on social networks on this point… and so that the price of the SFM goes “To the moon”!
Thus, if only the lure of profit (with the risk that goes with it) interests you, this type of cryptos may suit you!
SafeMoon is launched on the BNB Chain, the blockchain of the Binance exchange platform. It is therefore a token of BEP-20 standard, which has the particularity of favoring long-term investors.
The protocol uses Proof-of-Authority (PoA) consensus. It’s a kind of proof-of-stake (PoS) even more centralized, where validators are chosen by the community… or rather by the SafeMoon 😅 team.
Three main elements make up SafeMoon:
Overview of the mechanism of operation of SafeMoon
This last point is important. The SafeMoon protocol is not the only one to offer this feature. This involves removing a certain number of tokens from circulation, in order to guarantee price inflation in the long term. This technique is even used by Ethereum.
Only problem, until the recent V2 of SafeMoon, neither the SafeMoon site, nor its white paper (whitepaper) indicated the percentage burned at each transaction… and that was a big transparency problem. On the V2, we are apparently on a rate of 2% (see image above).
The only percentage that appears on the V1 white paper is 10% fee on each transaction divided into two:
- 5% for the Reflection element, so for the benefit of SFM holders (4% in V2),
- 5% for liquidity pools on the BNB Chain, half of which is converted into Binance Coin (BNB) to ensure the liquidity of SafeMoon and the BNB-SFM pair.
In the white paper, there is a passage on the burning of tokens, but you will not be reassured. Indeed, the burns are carried out manually by the SafeMoon team, which has the sole power of decision! In other words, they are not provided for in the computer code of the protocol.
The SafeMoon team justifies this by stating that it helps the community to be informed and especially rewarded in SFM. This is what attracts investors: the famous 5% redistributed to SFM holders.
So we don’t even know what criteria the team is using to remove certain tokens from circulation.
Finally, it is still unclear how the protocol works if no one decides to sell. What is this crypto for?
Even if the V2 seems to bring some evolutions, we are not going to go by four ways. Aside from speculating, SafeMoon is useless. Yes, you can make very nice gains, but you really have to be very careful. For once, you need to invest only the money you are willing to lose. Where to buy SafeMoon cryptocurrency (SFM)?
The SafeMoon cryptocurrency will not be available on major exchanges. You’ll find it on Gate.io, a lesser-known but secure exchange platform.
Of course, it is also accessible on DeFi protocols, the best known being PancakeSwap.Our opinion: a clearly speculative and quite opaque crypto
By reading this article, you have understood that we do not carry the SafeMoon protocol in our hearts. We have many reasons to believe that the project is not at all legitimate and that it is potentially a scam.
Let’s talk about what works first. Yes, holders are well rewarded and can receive the famous 5%. Of course, you do not control the price of the SFM. If the price keeps falling and it is really a scam, the price could fall to 0. However, if you touch 5% of 0, it will always be 0!
We will now talk about what does not work and there is more to say. On the one hand, there is a glaring lack of transparency in the team. One can create a speculative crypto like DOGE, but, at least, one knows how the protocol works. It is therefore not normal not to know the actual operation of the burning system.
Then, it is not even known whether or not the team has blocked tokens and, if so, how much and for how long. So we have very little information about the project’s tokenomics.
In summary, everyone knows more or less that the price of SFM will, one day, fall to zero. This is what he seems to be doing quietly since the price peak of April 2021… The problem is that no one knows when since it is when the team has decided. Until then, you can still make some money…