Safemoon is a cryptocurrency based on the Binance Smart Chain that was launched in early 2021. In this short guide, we seek to answer the question on many people’s minds – is Safemoon a good investment?
To aid your decision-making process, we discuss the SAFEMOON token’s performance since it was launched, future price predictions, and more.
Is Safemoon a Good Investment? Our Summary
Safemoon is a decentralized finance (DeFi) token.
A central part of DeFi is that trading on peer-to-peer chain networks can take place without the involvement of centralized entities like banks or governments. Safemoon was designed to encourage long-term investing while discouraging short-term trading.
This is because a fee is charged on all transactions involving Safemoon, which attempts to prevent people from selling. As we explain shortly, holders of the token receive a portion of this as dividends. This is a way for cryptocurrency investors to earn a passive income.
Safemoon is widely considered to be a meme token. The project is one of the most talked-about cryptocurrencies in its category, after the likes of Shiba Inu and Dogecoin.
The Safemoon token was released in March 2021 and quickly gained popularity. Whilst it has no real utility, it also claims to be the world’s fastest-growing cryptocurrency. If you want to invest in cryptos under $1, Safemoon could be a good choice.
With all that said, is Safemoon a good investment for everyone?
By the end of this market insight, you should be clear on whether this inexpensive cryptocurrency is a worthy addition to your investment portfolio.
How Safemoon Has Performed Since Launch & in 2022
As we mentioned, Safemoon was launched in March 2021. With the best meme coins, hype caused by strong and loyal communities as well as public figures goes a long way. As such, within a month of its launch, Safemoon tokens had increased by about 140,000% to an all-time high of $0.000014.
A long list of high-profile celebrities with millions of followers have invested in Safemoon. This is what caused the cryptocurrency to surge by such a huge percentage. Endorsements came from the likes of DJ Afrojack, Jake Paul, Lil’ Yachty, Nick Carter, Logan Paul, and many more famous faces.
This created a social media buzz that resulted in new exchange listings and increased interest from retail investors. Due to an influx of investors in Safemoon, several of the best crypto exchanges had to temporarily stop withdrawals in April.
Although nowhere near its all-time high at the time of writing, Safemoon is still in its infancy. For instance, if you had invested $100 in Safemoon when it was launched, your investment would be worth over $55,300 at the time of writing. Its year-to-date low is $0.0000020, while its high stands at $0.000005083.
When you’re asking yourself, ‘is Safemoon a smart investment?’, studying its previous performance is important. However, you should also look at more recent price action. As we touched on, Safemoon was launched just a year ago, so it’s brand new compared with other crypto assets.
- When Safemoon first launched it would have cost you $0.000000001 per token.
- Soon after the cryptocurrency had jumped to $0.000014 per token.
- As we mentioned, this was largely due to the cryptocurrency being launched into the spotlight on social media.
By late April 2021, Safemoon fell to $0.00000421, a correction of around 70%. Safemoon then bounced – by mid-May the token had increased in value by about 157%. Between late May and October 2021, Safemoon struggled to reclaim and hold the $0.000005 level.
In September 2021, Safemoon fell to $0.000001246. The rest of the cryptocurrency market crashed around the same time Bitcoin was declared legal tender in El Salvador. More recently, Safemoon opened 2022 at a price of $0.000005585, 60% lower than its all-time high.
Safemoon Highs and Lows
In its short price history, Safemoon has experienced a lot of volatility. This is owing to all sorts of things, but as you know mainly supply and demand.
This is particularly affected by how well-received cryptocurrencies are on social media and online forums.
Below you will see a recap of some of Safemoons highs and lows:
- Launch in March 2021 – $0.000000001
- 20th April 2021 – All-time high of $0.000014, showing an increase of around 140,000% since its launch
- 22nd April 2021 – Plummets to $0.00000421, a drop of about 70% in 48 hours
- 15th May – Safemoon pumps to $0.00000982, an increase of over 157% in less than a month
- 27th September – A little over four months later, Safemoon falls by almost 88% to $0.000001246
- 29th October 2021 – Increases to $0.00000624 – in a month this is a rise of 400%
- 6th March 2022 – $0.0000004948, Safemoon is 96% cheaper than it was at its all-time high
At the time of writing, Safemoon is hovering around the $0.0000005 mark.
Safemoon Price Prediction
DeFi is growing in popularity and if Safemoon continues to develop in terms of utility, there’s no reason it couldn’t have a part to play.
With that said, there are thousands of cryptocurrencies in this space, which means it could fail to stand up to the competition.
Price predictions on cryptocurrencies are entirely subjective. For instance, where one analyst might predict Safemoon will reach highs of $5 per token by 2025, whereas another market commentator might speculate it hitting $0.25.
As such, take price predictions with a pinch of salt and try to carry out research of your own.
Safemoon Utility – Is It Investable?
When you invest in cryptocurrency, there are a plethora of digital assets to choose from, and whilst some have plenty of uses, others lack utility.
As we touched on, Safemoon has had multiple endorsements from celebrities, ranging from UFC fighters and NBA stars to DJs, band members, and YouTube celebrities.
These high-profile Safemoon investors have a combined following on social media of millions if not billions of people. This usually bodes well for so-called ‘meme’ cryptocurrencies but still begs the question, does it have any actual use case in the real world?
One of Safemoon’s partnerships included Simplex. The two collaborated to offer integrated, streamlined crypto wallets to the masses.
The project has also collaborated with EverGrow. As a result of this alliance, EverGrow Coin may now be exchanged on Safemoon Wallet. The Safemoon Wallet is one of the new features added to its V2 update to improve its crypto performance.
This cryptocurrency’s V2 update also aims to increase the usefulness of each transaction, allowing the Safemoon ecosystem to grow. Each transaction contributes 1% to the Safemoon growth fund, burns 2% of the total token supply, and generates 3% liquidity.
- A 10% charge is applied on Safemoon transactions.
- This encourages investors not to sell so should appeal to long-term traders.
- Not only that but 5% is paid to existing Safemoon holders, the remaining 5% is divided with Binance Coin and added to Safemoon’s liquidity pool on PancakeSwap.
These incentives allow Safemoon investors to earn passive income with the goal of reducing at least some of the volatility experienced. With that said, no cryptocurrency is a safe bet and Safemoon is still brand new to the market.
Whether Safemoon is the right option for you will depend on your appetite for risk.
Where to Buy Cryptocurrencies
eToro is one of the best trading platforms to facilitate your cryptocurrency investments. The platform is completely safe as it’s registered with FinCEN and FINRA, as well as holding a regulatory license from financial bodies like ASIC, CySEC, and the FCA.
When you place an order to buy cryptocurrency, you will only pay the broker 1% of the value of the position. This is competitive, and also fixed, so you know where you stand at all times. There is a varied range of cryptocurrencies, small, medium, and large-cap.
Furthermore, all supported digital currencies can be purchased for as little as $10, due to the platform’s support of fractional crypto investing. The minimum deposit is $10 and US investors aren’t required to pay a transaction fee, regardless of the payment type you opt for.
Accepted payment methods are inclusive of e-wallets like Skrill, PayPal, and Neteller. You can also fund your impending investments with a credit/debit card, wire transfer, or ACH. If you wish, you can create a diverse portfolio of crypto assets by investing in copy trading.
This means you allocate funds to a seasoned trader and whatever they choose to buy or sell will be copied into your portfolio. The eToro platform is super easy to use. You can invest in crypto assets and store your tokens within your personal portfolio. You can also download the free app by eToro so you can buy and sell cryptocurrencies on the go.
Alternatively, download the crypto wallet by eToro. This includes advanced security features and a backup phrase just in case you ever need to recover your wallet.
Cryptoassets are a highly volatile unregulated investment product.
Should I Buy Safemoon?
If you are still asking yourself ‘is Safemoon a good investment?’, you will see a quick summary below to help you decide.
- Safemoon benefits from high profile celebrity endorsements
- In a short period of time, Safemoon has accrued millions of investors and a loyal online community
- The project has partnered with EverGrow in a bid to become as popular as the likes of Dogecoin and Shiba Inu
- In 2021, Safemoon collaborated with Simplex to create a slimline crypto wallet
- Safemoon pays token holders a 5% dividend
Despite the positives surrounding Safemoon, it’s important to remember that this cryptocurrency is still new and highly risky. Not only that, but Safemoon lacks any noteworthy utility.
If you do decide to invest in Safemoon, see our article on how to buy Safemoon to do so safely.
Is Safemoon a Good Investment – Conclusion
In this guide, we’ve highlighted whether or not Safemoon represents a good investment and talked about everything you need to know about its performance.
If you are still undecided on whether Safemoon is a risk worth taking, consider Lucky Block.
Unlike Safemoon, Lucky Block has real-world uses. Lucky Block is a lottery platform unlike any other. Using decentralized protocols, Lucky Block allows people all over the world to play lottery games in a fair and transparent way.
Lucky Block and its native token LBLOCK are among the fastest-growing blockchain projects to invest in right now. If you’re interested in cryptos at low prices, we reviewed it in detail on our penny cryptocurrencies article. One LBLOCK token currently trades for around $0.0020.
Cryptoassets are a highly volatile unregulated investment product.
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