SafeMoon Review and Opinions 2022 Is it legit?

The market for altcoins is growing at an unstoppable speed. More and more teams are embarking on the blockchain to create their own projects, and a clear example of this is Safemoon, one of the tokens that grew the most at the start of 2021.

In this article, I will tell you what Safemoon is, how its protocol works and how you can buy its tokens.

What is Safemoon?

Safemoon is a altcoin based on the Binance Smart Chain(BSC) protocol whose objective is to ensure that tokens and cryptocurrencies cease to be considered as mere speculation, and that more and more investors are incentivized to HODL with cryptocurrencies other than Bitcoin or Ethereum.

Origin

To study the origin of Safemoon, we only have to go back to the beginning of 2021, when the development team created the token and started having its first integrations with other platforms and cryptocurrencies.

Being such a new cryptocurrency, most of what is known about it are the plans of the founders. Among the most interesting are: being listed on the main scholarships of the world, create a stock Exchange for NFTs and stock Exchange conventional, create a cryptocurrency education app and even a charity project.

Com makes sense, not everything is planned. The Safemoon Team has already created his cryptocurrency wallet in the format software, and they have already announced that they are working on creating a physical version of this wallet.

How to register on Safemoon? It's certain?

If you are planning to buy Safemoon, know that you do not need to open an account for this. Instead, you should create a cryptocurrency wallet and use a exchange decentralized to exchange.

On the official website of Safemoon, they recommend you to use the portfolio digital Trust Wallet and use the DEX PancakeSwap to make the exchange. So, you just need to follow these steps:

1. Download Trust Wallet on your mobile device.
2. Write down the seed phrase in a safe place.
3. Deposit funds from a exchange or buy cryptocurrencies with a card.
4. Go to search engine DApps and enter PancakeSwap.
5. Select the cryptocurrency you want to exchange for Safemoon and the amount.
6. Run the swap.

Of course, before investing in any cryptocurrency, it makes sense that you ask yourself if it is safe or not. If we talk about the security of the transaction, the truth is that investing in Safemoon using a exchange decentralized is as safe as investing in any other cryptocurrency.

However, if you're referring to the security of Safemoon itself, things get complicated. From the start, many investors described him as a shitcoin, which in a nutshell is a crypto project with no apparent utility or simply plagiarising another currency.

But that's not all, at the end of May 2021 the prestigious audit firm blockchain HashEx has found several issues with this cryptocurrency and its ecosystem that put the funds of millions of investors at risk.

Specifically, 12 issues were found with Safemoon, some of them quite serious. The main conclusions of this analysis were:

• The smart contracts that support the Safemoon network may charge fees of up to 100% for token transfers.
• Sending tokens may be temporarily blocked.
• Token theft by developers can occur, disappearing with all the liquidity in the system.

How does SafeMoon work?

The operation of Safemoon is quite simple, and it could come down to offering incentives to investors so that they hold on to their tokens for as long as possible.

For developers, one of the main issues with many DeFi projects is the impermanent loss that many people have experienced when adding liquidity to relatively new cryptocurrency pools.

Thus, first users or initial investors took full advantage of the tokens and left new users with large losses and liquidity pools which barely gave any returns.

To avoid this, Safemoon has 3 fundamental pillars:

RFI Static Rewards

The rewards obtained through to yield farming remain stable over time. Thus, a large number of initial investors are prevented from selling their tokens after reaping very high rewards for a short period of time.

automatic PL

Function Automatic LP (Liquidity Pools) from Safemoon allows, as the name suggests, users to contribute liquidity to the system almost without realizing it. A big part of those Safemoon tokens that go to the liquidity pools come from a 10% commission that Safemoon sellers have to pay.

In this way, investors are encouraged to keep their tokens as long as possible and liquidity fluctuations in the system are reduced, improving the stability of the return obtained by the holders.

Manual burns

Safemoon is not the first DeFi project that relies on token burns to favor the price of the coin, but unlike many other projects the burns are not automatic, rather it is the team of development that decides when and where how much those tokens are. burned.

In this way, a seamless burning strategy that benefits users can be implemented.

Safemoon Wallet

As I told you before, the Safemoon team has many plans for the token and the platform. And one of the first projects that emerged recently was its cryptocurrency wallet, the Safemoon Wallet.

As you might guess from the name, this is a specific wallet to store Safemoon tokens. At the moment it is in beta phase, but many announcements have already been made about it and its novelties. Some of the main ones are:

• It will have integration with Simplex, so you can buy and sell Safemoon with a card without needing to use exchanges third parties or to buy other cryptocurrencies to exchange them against Safemoon.
• This will allow you to save contacts and wallet addresses so you can send cryptocurrencies faster.
• It will include a system of coffers -safes or piggy banks with which you can passively save for your goals.
• It will have a special calculator for cryptocurrencies with which you can easily perform operations, even if you are working with millions, billions or trillions of tokens.
• It is believed that users with a Safemoon Wallet account will be able to request a physical card associated with their portfolio to make purchases with their Safemoon tokens. However, this does not seem to be very common, since selling Safemoon tokens carries a 10% penalty.

Advantages and disadvantages of Safemoon

Benefits:

The Safemoon team has quite a few plans for the platform, so there could be a big spike in the price of the tokens if they come to fruition.

It is quite a cheap token (2021) so it could attract the interest of many buyers looking for their fortune

It is considered one of the high risk businesses, with the potential to win x100 (but also lose it all). It's kind of like a defi world startup.

Drawbacks :

It is a project with little or no support. The token increases are more down to memes and FOMO than outright trust in the project.

Selling Safemoon tokens is penalized with a 10% commission, so you have to get a high enough return to make it worth selling.

The audits the project has received do not bode well for Safemoon.

Final opinions and conclusion

In short, Safemoon is one of the fastest growing DeFi projects in 2021, earning many people hundreds of thousands of dollars. However, and although it hurts to say it, Safemoon does not bring anything new, different or valuable to the world of crypto.

In fact, many experts point out that the sole purpose of Safemoon is to make money. Moreover, it works like a Ponzi scheme, in which the returns of the more experienced investors come from the new investors. So the moment new users stop entering the circle, Safemoon might cease to exist.

Of course, Safemoon can always make big raises, and with the large number of projects they have in mind, it can create a lot of hype which ends in returns with more than 4 digits.

But of course, the same way Safemoon can take you, as its investors say, “ To the Moon », it can also make you lose a lot of money. Therefore, if you decide to invest in this project, you must do so knowing the risks to which you are exposing yourself.

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