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Highlights
- SafeMoon is a decentralized finance (DeFi) token and an alternative cryptocurrency (altcoin) to Bitcoin.
- SafeMoon has a very high supply of 1,000,000,000,000 tokens.
- SafeMoon was launched in March 2021.
Started in March this year, one cryptocurrency was pitched to the investors as a way of getting rich within no time. However, it seems that the cryptocurrency is failing to attract investors and it is only getting the attention of crypto enthusiasts on the internet.
We are talking about SafeMoon, a cryptocurrency whose name surfaced in the early trends in Canada but its price was down by five per cent, at the time of writing. As the name suggests, SafeMoon means a safe way to get to the moon. In terms of investment, it is believed that the cryptocurrency claims to make investors sky-high profits with little investments.
Is SafeMoon's game over & are investors wary of alleged Ponzi scheme?
After an initial surge, the cryptocurrency failed to continue its upward momentum and faced a lot of criticism for not having a real use-case and people dubbed it as a Ponzi scheme.
Let's find out more about the cryptocurrency and figure out if investors are getting wary of it.
Is SafeMoon safe?
For starters, SafeMoon is a relatively new cryptocurrency, and it remains highly volatile. A blockchain-based virtual currency, SafeMoon is a decentralized finance (DeFi) token and an alternative cryptocurrency (altcoin) to Bitcoin.
Also read: Is Shiba Inu the future altcoin? Know price prediction as it nears ATH
To understand the volatility of this digital currency, the all-time high of SafeMoon is probably the best example. On April 20, the cryptocurrency clocked an all-time high of US$ 0.00001399 per token, representing an increase of 20,000 per cent from the launching price.
The price shot up to the moon indeed, however, it soon fell back to earth, and it was trading about 89 per cent lower at US$ 0.000001551 apiece on October 12 at 4:30 AM EST.
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Why SafeMoon is alleged to be a Ponzi scheme?
Critics of the SafeMoon project seem to be wary of it as it is believed that this cryptocurrency was started to generate hype. The SafeMoon crypto reportedly does not have any real-use case and it is criticized for rewarding hodlers and punishing sellers.
It is alleged that SafeMoon's policy of punishing sellers discourages people from selling and that is a way to avoid day-trading and fix price volatility. SafeMoon charges a 10 per cent fee on each sale and says that it will reward long-term hodlers by distributing half of the fees charged from sellers among existing coin holders.
In addition, SafeMoon has a very high token supply of 1,000,000,000,000 tokens. Before the launch, the developers had reportedly burnt 223 trillion tokens and they can indulge in manual burns. This means that developers can regularly burn tokens and reduce the supply, which could cause the price of the token to go up.
Also read: TROY crypto’s volume soars over 3,000%. What is its price prediction?
Bottom line
The cryptocurrency market is highly volatile, and it is important to study a particular virtual currency before investing your money.
