skip to Main Content
Get your free daily newsletter: Actionable insight every morning for the self-directed investor. 
Join

The latest arrival in the world of cryptocurrencies is SafeMoon, launched 8 March 2021. Looking at their website, it is clear the developers’ main fear is how cryptocurrency speculators, in particular the ‘whales’, create valuation bubbles that almost inevitably burst, damaging the brand and its future prospects.

To address this problem, SafeMoon have focused on the development of what it describes as its ‘secret sauce’: an automatic liquidity pool, whereby loyal investors are rewarded and speculators are discouraged. Under this system, sellers will pay a 10% penalty, half of which is redistributed to existing holders, helping to create what they hope will be a ‘price floor’.

SafeMoon is essentially aiming to take a leaf out of Warren Buffett’s book on investment. The developers are keen to promote the ‘buy and hold’ philosophy, to get away from the cryptocurrencies’ tarnished reputation as the wild frontier of the investment world. As SafeMoon says on its FaceBook page: “Remember, getting to the moon takes time and the longer you hold, the more tokens you pick up.”


SafeMoon: the next steps

So, what are the next steps for SafeMoon? The developers say they are working on the integration process with WhiteBIT, a crypto-to-fiat currency exchange offering more than 150 trading pairs, and BitMart, the cryptocurrency trading platform. In the second quarter, they will start developing the NFT Exchange, (where crypto users and companies can trade non-fungible tokens), the SafeMoon Exchange and explore options with other exchanges such as Binance and Mandala. They aim to hire more staff, open an office in UK/Ireland and develop links with African markets. Underlining their social responsibility, SafeMoon is developing charity projects, scholarships, crypto educational apps and video games featuring SafeMoon.

Any investment decision has to weigh value and potential for growth, and the same applies to cryptocurrencies. Each Bitcoin is already worth some $60,000, with not-unrealistic forecasts of $100,000 given that institutional uptake is only just gathering momentum. BlackRock, Mastercard, Tesla and PayPal are all on board, while Bitcoin was up 3% in London this week on news that VISA is planning to join too.

If Bitcoin continues to grow in value then so could other cryptos, such as Ethereum, Chainlink, Synthetix and Doge. And why not SafeMoon?

Listen to our Podcast with Stephen Ehrlich, CEO of Voyager Digital, on trading and investing in cryptocurrencies

Over 1500 cryptocurrencies have crashed

Cryptocurrencies are gaining popularity, with some 106 million users globally trading in more than 2,300 cryptocurrencies. However, 1,620 have crashed (‘dead coins’), highlighting the fact that some cryptocurrencies, despite their best laid plans, just fail to take off. Reasons vary, from security issues, bad press, bad planning or plain fraud.

In January this year, Gemcoin founder Steve Chen was sent to jail for 10 years for defrauding investors. In December 2014, Paycoin founder Josh Garza declared, “I have confidence that Paycoin will be established as the new dominant global online currency”, and that it would have a ‘floor’ of $20 – in 2015 it collapsed, and Garza later pleaded guilty to a wire fraud charge.

Yet, despite the failures and the fraudsters, newcomers keep coming, surely the expression of the confidence of the market in what is still a relatively new sector. SafeMoon seems to be trying to address the weaknesses of cryptocurrencies, in particular with its 10% sales charge to encourage investors to buy and hold. Gaining the backing of any market is not easy but, for the fickle and volatile crypto market, it is critical.

Related

Become a better investor with SharePad Designed to give you the confidence to pick your own investments, Sharepad gives you access to a wealth of information on UK, US & European stocks. Find out more

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

James Norris

James Norris

James is a highly experienced writer and editor, gained from more than 20 years in the financial services industry, in particular wealth management and asset management.

He initially worked as a financial journalist for a number of leading media brands, including the FT Group, Financial News, Euromoney and Incisive Media, covering most aspects of the asset management industry. More recently, James switched to work as an in-house content specialist for fund management and wealth management groups, including JP Morgan Asset Management, Quilter Cheviot Investment Management, AXA Investment Managers and Invesco Perpetual.

Stocks in Focus

Here are some of the smaller companies we are following most closely. They all represent significant growth stories in our view. Our in-depth reports go into more detail on why we like them.

Comments

This Post Has 3 Comments

  1. SafeMoon is in early days but the community and the people behind the the project are incredible. People buy into trust and transparency and so far the Devs have delivered on all of their promises and hold regular AMA meetings with the growing community which is boosting people’s confidence and loyalty towards the token.

    Very promising indeed.

  2. Excellent article
    Safemoon is far from a scam
    The team look impressive and honest
    All aboard then space ship it’s going to the moon

  3. Hello James,

    I’m a safemoon holder and I’ve been watching the discord chat all day. We had a parabolic rise today broken finally when the binance exchange servers apparently crashed from high volume. The bitmart and whitebit listings have both been announced to go live by Monday, April 5th. I wanted to share in case you’re not following this project as closely as I am.

    Thank you!

Comments are closed.


Get your free daily newsletter: Actionable insight every morning for the self-directed investor. 
Join

Thanks to our Partners

Our partners are established, regulated businesses and we are grateful for their support.

Pepperstone
FP Markets
IG
Spreadex
Trade Nation
WisdomTree
ActivTrades
Back To Top