The Potentials Of SafeMoon
Crypto investors are always in search of the next best token to place their money in for higher returns, and recently a new coin is on everyone's lips. This altcoin is SafeMoon and since its launch in March, it has been soaring in both popularity and value. SafeMoon was released on the 16th of April and by the 20th, it has already experienced a significant 910% boost in share price.
If you are searching for the next token to invest in aside from Dogecoin and Ethereum, SafeMoon should be on your list. In this article, we will discuss the prospects of this new token and how safe it is to invest.
What is SafeMoon?
SafeMoon is a very fresh token released a few days ago, so it is somewhat difficult to have all the facts about this new coin. However, there has been a series of Questions and Answers sessions by the creators of this coin. This is done in a bid to communicate its legitimacy and garner trust from potential investors.
However, what is known is that SafeMoon is a decentralized finance startup designed to correct discrepancies reported in other types of altcoins. SafeMoon is valued below the $1 threshold just like Dogecoin, but the value has been skyrocketing consistently. Although this is a good thing, investors are still skeptical about what exactly this coin is or how well it will perform in the crypto market.
Plus, with the qualities of all crypto coins, there is no regulation, which is great for trading costs. But can be bad for the value, as it can fluctuate at will.
SafeMoon's Reward For Purchases
One of the most popular and controversial features of SafeMoon is its claims of rewarding investors for purchasing the token. The company essentially claims it will reward investors who purchase the token and store it instead of trading it. However, it comes with a catch, you will receive a deduction whenever you trade.
The company will charge you a 10% tax if you sell your tokens. 5% of this tax will be redistributed to other investors who decide to store their tokens. While this may sound like a no-brainer because you get rewarded for storing your tokens, a lot of crypto experts think differently. According to research, many experts believe this is a high-risk move because more people need to buy the token for the value to keep rising.
This is because the decentralized structure of the token is sure to expedite price volatility, which could lead to crypto investors not holding their tokens long term. Hence, leading to reduced value over time. For instance, Laith Khalaf, a financial analyst at AJ Bell compares this strategy with a pyramid selling scheme. What he means is that being reliant on someone else willing to pay more than you did (10% tax) so that you can make a profit is very risky.
Therefore, it is advisable to wait until you know more about SafeMoon before taking such a risk.
Is SafeMoon The New Dogecoin?
Considering the origins of Dogecoin which started as a joke but has consistently become a valuable coin, it's no surprise many new coins are compared to it. SafeMoon started at a smaller value just like Dogecoin and has recently experienced a significant surge in value.
Although Dogecoin now has a competitive market cap of around $51.4 billion, it received a push from high-class personalities such as Elon Musk. A much-needed boost back when the world was still skeptical about cryptocurrencies and its decentralized nature. However, you can argue that SafeMoon has a higher chance of becoming bigger now. Here's how;
SafeMoon Exchange Platform
The first thing to note is that SafeMoon is already working on building its crypto exchange platform. Unlike Dogecoin that became popular because of a dedicated community, SafeMoon is planning on a launch in which it has successfully raised $770,000 out of the $1 million needed. With its crypto exchange platform, SafeMoon can continue to grow and get investors faster than Dogecoin.
Non-Fungible Tokens Projects
Another way SafeMoon plans to take its value to the moon is by developing several projects such as a video game with the token integrated into the gameplay. This will skyrocket the value and prompt more investors to hold onto their tokens.
The final way SafeMoon might have a head start over Dogecoin is by aiming to get their tokens on other popular crypto exchanges such as Coinbase. By listing on these platforms, there's an increase in accessibility for more investors.
Even though SafeMoon seems to already have plans for prospective growth intact, can you say the prospects are great? Or if it's safe to invest in SafeMoon at this time? Here are the price predictions to help you answer that question.
Price Predictions For SafeMoon
The price of SafeMoon skyrocketed between the 17th and 21st of April from $0.00000159 to a maximum of $0.00001399. This is a 780% profit in five days and a mindblowing 69,850% since the 12th of March. However, there was a 70% decline on the 22nd of April, which placed the value at $0.00000421, which is a traded volume of $191.6m.
According to Digital coin, the price prediction indicates a likely increase in the coming years but the value remaining at a fraction of a cent. That is an average of $0.0000609 this year and $0.00001240 in 2025.
Coinpedia predicts that SafeMoon will pique at $0.00001256 by the end of the year and between $0.000016-$0.00001655 by the end of 2022. Also, they expect the price to keep soaring consistently till it ascends to $0.00005 in 2025.
SafeMoon is a decentralized finance token with a value below the $1 threshold. Similar to Dogecoin in more ways than one, SafeMoon has recently experienced a surge in value with over 1 million users holding their tokens. Although this company has a pyramid scheme type of strategy, many financial experts expect bullish momentum with this coin. It will be interesting to see what the future holds for the SafeMoon token.
BitForex is an exchange service platform that can be classified as one of the Top 20 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.
BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts, derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.