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Is Safemoon a good investment?
2021-10-04, 10:18
What is Safemoon?
Safemoon is a new BEP-20 token that runs on the Binance smart chain. BSC is the main competitor of Ethereum’s Decentralized Finance system. Safemoon was launched on 8th March 2021, and it has quickly grown to be the third-largest BEP token by market Capitalization.
How does the Safemoon work?
Safemoon utilizes the proof of authority mechanism. Its block creators known as Validators are pre-chosen by Binance hence making the project centralized. Safemoon is built on three components.
Reflection: All the transaction fees are distributed to the holders. Reflection gets a share of 5% of the transaction fees.
Liquidity Pools: A portion of the transaction fees is paid to the pancake liquidity pools and other platforms. Liquidity pools also get 5% of the transaction fees. Half of this 5% automatically converts into BNB to strengthen the Safemoon and Binance coin pair.
Token Burn: A small portion of the transaction fees is sent to the Safemoon Burn address after each trade. Never to be retrieved. The burns are performed by the team depending on the achievements.
As of September 23 2021 Safemoon has a market capitalization of $856,476,898 compared to $823,203,662,065 for Bitcoin. So far the total supply for Safemoon is 1,000,000,000,000,000. The circulating supply is 575,211,536,874,138.
Should I invest in Safemoon?
Since its launch, Safemoon has been up 3253%. There is no doubt this token is designed for one purpose, which is to increase in value. All the Tokenomics behind incentivize investors to hold the currency as they earn passive income from the transactions. Besides lures more investors hence boosting the Safemoon price.
Reducing the supply helps to increase the supply. You can invest in Safemoon because it has a huge community backing it. However, you need to consider all the risks first. For example, Safemoon is highly volatile, just like any other Crypto coin. Also, there can be a liquidity challenge. Although Safemoon has a mechanism for preventing this from happening, it’s still possible. All holders that liquidate their tokens are charged a 10% fee distributed to the existing holders.
You can invest in Safemoon, but don’t put all your life savings in it because of the risks. Besides, you can dollar cost average to get maximum returns even during the high volatility window. The coin is yet to unfold its full potential. It sits at position 108 in terms of Market cap.
Where can I buy Safemoon?
Gate.io is the best exchange to buy Safemoon. It has a simple and friendly user interface. Whether you are a pro or a beginner, gate.io has quality features for all levels. Except Safemoon, you also can buy other currencies on Gate.io, more than 800. Additionally, gate.io utilizes the latest 2FA technology to ensure your assets are safely guarded. On Gate.io, support transactions using a credit card, bank transfer and P2P trade.
How to buy Safemoon on gate.io
● Sign up on the official website or Gate.io APP. Users can download the Gate.io APP from App Store, Google Play or Android.
● Click on buy crypto and select credit card.
● Enter your amount and choose USDT coin
● Select service provider and click purchase.
● Click on spot trading and select Safemoon/USDT trading pair
● Enter the amount and click the Buy button.
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