In the last few months, social media influencers started encouraging everyone to buy SafeMoon tokens by promising fortune. The token quickly became one of the most watchlisted cryptocurrencies on CoinMarketCap. At present, it is more followed than Ethereum. So, how good of an investment is SafeMoon?
Launched in March 2021, Safemoon is a token built on the Binance Smart Chain (BEP20) with an initial supply of 1,000,000,000,000,000 tokens. The token arrived on the market presented as a cryptocurrency that rewards its holders. It has a smart contract protocol that imposes a 10% fee on each sale to encourage its users to keep their tokens. Half of that fee is distributed among holders as a dividend, while the other half is poured back into the SafeMoon infrastructure, including the liquidity pool. In addition to this, SafeMoon developers burn tokens manually to add scarcity and thus value to the currency.
With its current market cap and a circulating supply of 582,624,730,982,869.2 tokens, one SafeMoon Coin is worth around $0.000004. This means that a one-dollar bill can buy you close to a quarter-million tokens. But do not get your hopes too high as SafeMoon reaching a price of a cent is close to impossible since it would mean that its market cap would be close to 6 trillion US dollars, which is more than 3 times the current market cap of the cryptocurrency market.
The highest price SafeMoon has reached is $0.00001375. This price was it at the top of the hype since the cryptocurrency has gained its notoriety through social media, mainly TikTok. During April 2021, similar tokens to SafeMoon were shared by "investment" influencers. Those started to be described as scams, SafeMoon included. Slowly the hype faded away, and the price declined as holders began to sell.
The technology behind SafeMoon is not incredible, simply by the fact that a token exactly like SafeMoon can be created instantly on CoinTool.App, an online digital currency toolbox accessible to everyone. There is just a network fee of around $500 to be paid.
In conclusion, Safemoon's success is more due to a good social media strategy than a revolutionary technology. In fact, anyone can reproduce a token like SafeMoon without knowing any code, making it more of a gamble than an investment. However, it has become one of the largest cryptocurrencies on the market, so plenty can be learned by any aspiring crypto project.