What Is Safemoon Coin? Evaluating the Potential of Safemoon Coin

Safemoon Coin is one of the cryptocurrencies that has experienced a skyrocketing price increase since its official launch in early 2021. This article will piece together various aspects of the Safemoon project, starting from the basics such as what Safemoon Coin is, detailed information about the coin, what Safemoon V2 is, and finally, an evaluation of Safemoon Coin’s potential.

1. WHAT IS SAFEMOON?

SafeMoon is a decentralized finance (DeFi) protocol. Its name is derived from the phrase “Safely to the Moon.” The SafeMoon protocol combines RFL tokenomics and an automatic liquidity generation mechanism. At the same time, SafeMoon is also the native cryptocurrency of this network. It was created with the aim of providing an alternative to certain cryptocurrencies like Bitcoin, Ethereum, and even meme coins.

Through a development cycle focused on the community and users, SafeMoon has the potential to create new fintech products and achieve advancements within its ecosystem more quickly and efficiently than most traditionally funded and regulated companies.

Launched in March 2021, SafeMoon Coin quickly garnered massive community attention within just a month thanks to its “skyrocketing” price increase. The development team designed a fee system to ensure investor loyalty. Specifically:

• A 10% transaction fee is applied, with 5% redistributed to SafeMoon token holders and the remaining 5% added to the liquidity pool.
• Whenever someone buys or sells SafeMoon Coin, about 0.5% is transferred to the liquidity pool.

2.  SAFEMOON COIN DEVELOPMENT TEAM

SafeMoon is a privately owned, human-focused technology company headquartered in Utah, with a secondary presence in the United Kingdom. The company introduced its protocol and unique vision in early 2021. The long-term goal of the SafeMoon Coin protocol is to develop its DeFi products and services into an ecosystem that makes the power of blockchain accessible to a broader community.

The SafeMoon Coin project is backed by a team led by CEO John Karony. His key associates include Hayden Wing, currently serving as Chief Business Officer; Joshua Chilcutt, Vice President of Operations in the United States; and Kate Porter, Global Head of Human Resources. Each member of the SafeMoon development team brings extensive experience in their respective fields.

3. FEATURES OFFERED BY SAFEMOON

The SafeMoon protocol incorporates three core features that apply to every SafeMoon Coin transaction on the platform:

• Reflection Mechanism: This mechanism, previously mentioned, is the static reward system that forms the foundation of SafeMoon’s transaction fee model. Rewards are distributed based on the number of SafeMoon tokens held, aiming to reduce selling pressure from early token holders and encourage long-term holding.
• Automatic Liquidity Pool (LP): SafeMoon provides a self-sustaining liquidity system by continuously adding coins to the liquidity pool through transaction fees. This mechanism helps maintain a stable price floor for SafeMoon Coins and limits the impact of large holders (whales) dumping tokens on the market.

• Manual Burn (Safemoon Token Burn): Like many other cryptocurrency projects, SafeMoon also implements a periodic token burning mechanism. This process involves permanently removing tokens from circulation, with the primary goal of creating scarcity and potentially boosting the price of Safemoon Coin. For detailed information about the number of burned Safemoon tokens and other related data, you can refer to it [HERE].

4. WHAT IS SAFEMOON V2?

By late 2021, the SafeMoon project officially introduced and began transitioning to Safemoon V2 — an upgraded version that comes with several new features. The SafeMoon V2 platform enhances operational efficiency and fosters stronger development across its ecosystem.

Currently, there are two distinct tiers in operation, with the potential to expand to more levels in the future depending on demand:

• A 2% transaction fee is applied between Safemoon Wallets.
• Buy/Sell fees – Swaps between paired tokens.

The launch of SafeMoon V2 also marked the introduction and transition from the original SafeMoon Coin to a new version. As of now, the SAFEMOON Token V1 has officially been migrated to a new smart contract.

5. WHAT IS THE SAFEMOON TOKEN?

The original coin of the SafeMoon V1 protocol carried the same name as the project. However, as mentioned above, all tokens have now been migrated to SafeMoon V2. The protocol still offers a token conversion feature for holders of SafeMoon V1, allowing them to swap to SafeMoon V2 tokens at a 1000:1 ratio.

The two most official and reliable platforms for swapping SafeMoon V1 to V2 are the SafeMoon App and Web Swap. You can access the feature within the app by searching for “SafeMoon.” The transaction fees for V1 tokens have also been adjusted to facilitate the migration process. For this reason, this article will focus solely on SafeMoon V2 Coin.

5.1. SafeMoon Coin Information

SafeMoon V2 coin details are fully updated and available on both SafeMoon CoinMarketCap and SafeMoon CoinGecko. If you accidentally access the SafeMoon V1 token, the platform will automatically issue a warning and redirect you to the correct SafeMoon V2 page.

• Token Name: SafeMoon V2
• Symbol: SFM
• Blockchain: Binance Smart Chain
• Token Standard: BEP-20
• Maximum Supply: 1,000,000,000,000 SFM
• SafeMoon Token Address: 0x42981d0bfbAf196529376EE702F2a9Eb9092fcB5
• SafeMoon Coin V2 Price: $0.0004357

5.2. How Does SafeMoon Coin Work?

Both SafeMoon V1 and SafeMoon V2 are built on the Binance Smart Chain platform. The token operates on a deflationary mechanism, with periodic annual burns (SafeMoon token burn). Traders can follow updates through posts on the official SafeMoon Twitter page to stay informed.  The SafeMoon token is designed to incentivize and promote long-term investment, rather than short-term sell-offs.

With its deflationary mechanism, the SafeMoon project has also reduced the circulating supply of SafeMoon coins in the market, helping drive the price higher. As you may know, the price of SafeMoon V1 reached its peak just one month after launch. For the newly launched SafeMoon V2, the ATH (All-Time High) price recorded was $0.007232 in early January.

5.3. Safemoon Token Allocation

It must be noted that SafeMoon V1 had a large supply and a very low price at the time of launch. The project initially started with 1,000 trillion SafeMoon tokens, distributed as follows:

• Circulating supply: 77.7%, equivalent to 777 trillion SafeMoon tokens

• Safemoon token burn: 22.3%, equivalent to 223 trillion SafeMoon tokens

5.4. Where to Buy SafeMoon Coin?

SafeMoon V2 tokens have been listed on multiple trading platforms, including both decentralized exchanges (DEX) and centralized exchanges (CEX). Some notable names include Gate.io, MEXC, and the DEX PancakeSwap (V2). The process of purchasing SafeMoon coins is similar to that of other tokens, so this article from TradaFX will not provide detailed instructions.

Additionally, in April 2021, the SafeMoon project announced plans to launch its own exchange – SafeMoon Exchange. According to a post on the official SafeMoon Twitter account, the team successfully raised $1 million to fund the development of this platform.

In addition, you can currently buy SafeMoon V2 through the SafeMoon Wallet.

• First, download the SafeMoon Wallet and create a wallet if you are a first-time user.

• Buy BNB on the Binance exchange.

• Transfer BNB from Binance to your SafeMoon Wallet.

• Swap BNB to get SafeMoon V2 tokens directly within the SafeMoon Wallet.

6. SAFE MOON COIN REVIEW

Although SafeMoon coin reached its ATH shortly after launch, its price has since dropped significantly and remains low to this day. As mentioned earlier, if investors are interested in this project now, they must buy the SFM coin, which is SafeMoon V2, because once the conversion period is complete, SafeMoon V1 tokens will become obsolete. Therefore, unlike previous articles about the coin, we will analyze the project’s strengths and weaknesses to assess the future of the SafeMoon coin.

6.1. What makes the SafeMoon Coin project different?

The SafeMoon coin whitepaper highlights a major and prominent issue in the decentralized finance (DeFi) sector: the presence of farming groups with high APY (Annual Percentage Yield), which are often difficult for newcomers to access. However, the SafeMoon project decided to implement a static reward mechanism. This means the conditions for receiving rewards depend on the volume of SafeMoon tokens traded.

This reward mechanism of SafeMoon coins aims to reduce the selling pressure when SafeMoon tokens are sold. Additionally, the project’s reflection mechanism helps encourage holders to keep SafeMoon coins for a longer period. Moreover, with the automatic liquidity pool, the protocol’s stability is supported by providing a price floor for SafeMoon token holders.

6.2. Disadvantages

Not only should we look at the differences or unique features of the SafeMoon coin protocol, but we also need to recognize the existing drawbacks in the project. Two of the main issues are extreme volatility and lack of liquidity. In fact, no major providers currently accept SafeMoon coin as a payment method, and converting SafeMoon tokens to fiat currency takes quite some time since there is no direct conversion available.

In addition, SafeMoon Coin is a meme coin and does not have any specific utility. It is true that the project’s fee system design has created a more loyal group of investors and reduced instances of panic selling, but many people remain skeptical about whether SafeMoon is a Ponzi scheme or a “pump and dump” operation. Of course, these are just some suspicions, and the SafeMoon CEO has denied these claims.

7. SUMMARY

Whether you choose to invest in or buy SafeMoon Coin depends on your capital and risk tolerance. However, with today’s article on what SafeMoon coin is, it should not be difficult for you to recognize the risks involved with this meme coin.

All the essential knowledge—from what SafeMoon coin is, how to buy SafeMoon coin, to the evaluation of the project’s advantages and disadvantages—has been fully covered above. Hopefully, this information can help support you somewhat in analyzing and considering your investment in the SafeMoon token.