Cryptocurrency trading has become a common practice recently, especially since investors and collectors are so heavily invested in them.
We are already aware of how unstable the cryptocurrency industry is. The recent price changes and fall of certain crypto exchanges provide evidence for this claim.
Ethereum, bitcoin, StopElon, and Dogecoin are some of the recent crypto exchanges that are ruling the industry. Numerous alternatives are also available here in this industry.
SafeMoon is one of the latest cryptocurrencies that is getting attention worldwide recently.
If you are a crypto person, you might have thought about what SafeMoon is. And how does it work?
So, let us look deeper into SafeMoon.
What Is SafeMoon?
SafeMoon is one of the recent cryptocurrency and blockchain firms that gained popularity in the previous year. Introduced in March 2021, SafeMoon gained popularity as its price surged in April of that same year.
Since its peak in April 2021, it has lost approximately 99% of its value, thereby losing all of it. It charges sellers a 10% fee, with a portion of that cost flowing back to current holders, and was created to reward long-term investors.
The token charges a 10% transaction fee, of which 5% is given to token holders and 5% is sent to wallets in Binance Coin, the coin of the creators.
Who All Are Behind SafeMoon?
The CEO of SafeMoon is John Karoly, who is also an All-Source Analyst for the US Department of Defense. Thomas Smith, who recently filed in as the CIO of Goldsmith Blockchain Consulting, is the CTO of SafeMoon.
Ben Philips has been hired as the Manager, and Jack Haines-Davies, who formerly worked for LikeAndShare LTD, is the COO of this currency.
How Does It Work?
SafeMoon was created to promote long-term investment while discouraging short-term trading, however, it has not gained traction since its first price jump. To better preserve price stability.
SafeMoon’s owners purchase tokens created from the liquidity pool, giving them influence over tokens created as part of the fee, the blockchain security firm CertiK discovered during an assessment of the platform.
This was identified in CertiK’s report as a serious problem, and then the company was advised to strengthen its security measures.
SafeMoon uses a method to address the problem of value instability where they forbid the day of trading of their coins. SafeMoon created a compensation mechanism, for the long-term and primary holders of the tokens.
10% penalty exchange charges will be incurred by those who sell tokens, and 5% of these punishment exchange charges will be distributed to the existing token holders.
This plan is designed to prevent the sale of tokens and encourage ownership of them instead. The proposal gives the present coin owners more benefits while forcing merchants to pause before they sell tokens.
This method aims to decrease the sharp drops in value brought on by the selling of cryptos that cause fluctuating prices and market declines.
How To Purchase SafeMoon?
According to the official website of SafeMoon, the purchase can be done through PancakesWap. The first step is to create a reliable wallet. The next step is to convert BNB to a smart chain using a trusted wallet and to scale SafeMoon.
To switch from Binance Smart Chain to SafeMoon, use PancakesWap. After the trade, the wallet will receive SafeMoon.
In some cases, SafeMoon has faced some criticism. Due to the lack of any specific methods of direction, experts claim that investing in SafeMoon is a risky enterprise.
Since the organization claims the majority of the liquidity, a Ponzi scheme comparison has been made. These critics have been pardoned by SafeMoon, who has also revealed its exact course for the foreseeable future.
The organization wants to coordinate SafeMoon with African Markets, look into other exchanges like Binance, and possibly even start its exchange.
Controversy And Lawsuits SafeMoon Faced
Several class-action lawsuits have been filed against the SafeMoon founders as of July 2022, alleging that they artificially inflated the coin’s value by making untrue claims about its financial security.
The founders of SafeMoon and the celebrities who supported the coin are accused of defrauding investors through a “pump and dump” operation, resulting in the loss of hundreds of millions of dollars by token holders.
According to the allegations, SafeMoon LLC neglected to register the tokens with the US Securities and Exchange Commission as securities.
SafeMoon allegedly had access to these pools rather than locking the 10% transaction fees into LPs, giving SafeMoon the ability to reroute money and putting the token’s value at risk.
Founders of SafeMoon are accused of imposing a 100% tax on the original coin in December 2021, without giving investors any prior notice, forcing them to switch to a second form of the coin.
In essence, SafeMoon’s founders allegedly deceived investors into purchasing an unstable currency and made money off of their losses.