What Is the SafeMoon Coin, and Can It "Rise to the Moon"?

Making its first appearance in Spring 2021, SafeMoon didn't take long to gain massive publicity. Its price naturally skyrocketed multiple times over. But don't be mistaken, at the time of writing, it's still worth only $0.0000085.

If this hodler-oriented coin caught your attention, keep on reading. In this article, we'll cover all essential information, from what SafeMoon is to how you can trade.

What Is SafeMoon?

Very little information about SafeMoon is available. This is partly because the coin only hit the market in March 2021 and partly because its creators are trying to maintain a mysterious background. 

Technically, SafeMoon isn't a cryptocurrency; its website calls it a DeFi token. DeFi stands for decentralised finance token, and the easiest way to describe it is as a form of finance that does not rely on central intermediaries. But for the purposes of this article, we'll be using the term SafeMoon crypto since most publications refer to it as such.

Like Bitcoin, SafeMoon uses blockchain technology but with some clear distinctions. According to its developers, the protocol is a combination of RFI tokenomics and an auto-liquidity generating protocol.

The SafeMoon White Paper claims its supply totals 1,000,000,000,000,000 coins. That's one quadrillion. The fair launch supply was 777,000,000,000,000. These figures may seem ridiculous because such supplies used to be unheard of.

When you sell, you're charged a fee of 10%:

• 5% is redistributed to all investors in proportion to the amount of SafeMoon that they hold at the time.
• 2.5% is sold by the contract into Binance Coin.
• 2.5% is added to PancakeSwap as a liquidity pair.

What You Should Know About SafeMoon

What else is important to know about the coin with a punny slogan, "Safely to the Moon"?

• Community Driven: The project doesn't have a company structure or a specified owner. The development process, resources and decision-making are guided by the SafeMoon community. Before the coin's launch, the dev team burned all their coins to be on even ground with everyone else. 
• Automatic LP: An adequate level of liquidity is maintained with every trade. These liquidity pools are then used by all participating exchanges.
• RFI Static Reward: Similar to LP, investors are rewarded with every trade within the network, which helps them earn passive income.

On 19 April, SafeMoon became a trending topic on Twitter, and soon after, reached its humble all-time high of $0.000014 on 21 April. This phenomenon was described in a similar vein as other 'cult stock' pumped assets like GameStop (NYSE:GME).

With these types of tokens, there is little barrier to entry to create a similar project. So, it's no wonder we're seeing yet another wave of coins with a high initial wave of interest.

Recent News Stories Featuring SafeMoon

Most news articles either focus on why the SafeMoon currency went up so drastically or analyse its possible future direction. But in this section, we'd like to share the media coverage of the project's recent developments:

• In the "Ask Me Anything" live stream session, John Karony, CEO of SafeMoon, and Jack Haines shared their plans to use Minecraft as a testing ground for future video game integrations. The team has already created a Minecraft server, and more details will be shared on Twitter and Discord in the near future.
• In the same Q&A broadcast, the creators announced changes in the SafeMoon cryptocurrency wallet and a partnership with Simplex, a brokerage-like payment processing gateway.
• An ad for SafeMoon was spotted on the billboard in a prime spot in Times Square. Supporters of SafeMoon posted pictures and videos on the Reddit thread, showing that the number of enthusiasts shouldn't be underestimated.
• SafeMoon overtook Bitcoin on the number of CoinMarketCap watchlists. When the news broke, there were over 1.3 million people tracking SafeMoon compared to Bitcoin's 1.2 million.
• The forums became very intrigued by the mysterious Project Phoenix. John Karony commented that SafeMoon is going to be the fuel for the freedom of the unbanked.

SafeMoon Price Prediction

Investors seem to be gravitating towards new DeFi protocols like SafeMoon. Therefore, usage might provide more underlying value as time goes on. This is reflected in the SafeMoon price predictions that we've seen so far.

Below is a table listing possible prices for 2021 offered by Wallet Investor.

From this table, as well as other similar publications, we can see an overall positive sentiment surrounding the token. 

The promising outlook follows SafeMoon for up to 5 years in the future. By 2026, the coin might increase by as much as 2,500%. However, bear in mind that such long-term forecasts are only based on historical performance and put less emphasis on fundamental factors. 

Is the SafeMoon Coin a Good Investment/Trading Asset?

SafeMoon seems to have a lot to offer, as do many crypto assets in 2021. Bear in mind that there is potential profit, as much as losses, to be made from the inevitable volatility of the cryptocurrency market. 

From the technical analysis perspective, SafeMoon recently broke out of what's called a falling wedge pattern. As of the time of writing, it's trading above both the 50-day moving average (green) and the 9-day exponential moving average (blue), which is creating bullish sentiment.

Calculations for trading:

• Resistance Level (R3): 0.000014
• Resistance Level (R2): 0.000013
• Resistance Level (R1): 0.000011
• Pivot Point: 0.000010
• Support Level (S1): 0.000008
• Support Level (S2): 0.000006
• Support Level (S3): 0.000005

From the fundamental analysis perspective, the coin needs to achieve some functionality beyond simply being a tool for speculators. If it doesn't, the loyalty feature will not be able to sustain the current value. And since investors receive half of the transaction fee, their investments rely on more people buying SafeMoon.

Another Route: Trading Safemoon as a CFD

A CFD (contract for difference) allows you to trade an asset’s price movements without actually needing to own the asset — which, in this case, would be Safemoon. Rather than opening a position on the market, you’ll form a contract between you and an intermediary (for instance, Libertex).

Cryptocurrencies like Safemoon are garnering a lot of interest as CFDs, as they have the potential to experience huge leaps in value. Rather than buying the actual digital currency, which can have slower processing times and could lack regulations, you can trade via CFDs. The main benefit is the instant transaction time, which is a good match for the cryptocurrency market’s volatile nature. 

What’s more, CFDs allow you to invest in either the rise or fall of an asset — so if the crypto market is struggling, you can try to capitalize off that. Rather than sinking your money into an investment and losing it if things go south, you can make informed decisions based on the current market sentiment. 

 Naturally, your next question might be: how do you get started trading SafeMoon and other crypto as a CFD? You’ll need to find a reputable intermediary that support crypto CFDs. For instance, at Libertex, we offer a wide range of crypto CFDs, and zero commission fee, swaps and exchange fees. 

You’ll create an account with whichever broker you choose — but to make things simple, we’ll walk you through Libertex’s process. Simply fill out your email and password fields, upload documents for verification purposes, and make your first deposit. Then, you can either practice with a demo account or start live trading immediately. 

To make more informed CFD trading decisions, check out the Libertex education section; you can view informative webinars and take a beginner’s trading course to get started. 

Why Are Cryptocurrencies So Attractive for Traders and Investors?

There is a school of thought that sees cryptocurrencies as the only financial medium in the future. But even without going to such great lengths, traders and investors see their value as speculation assets. Here are some of the reasons why:

• Favourable forecasts: Most cryptocurrencies are going through an upward trend guided by Bitcoin's never-ending success. Therefore, most forecasts are favourable and predict the growth to continue in the next two to five years.
• High potential returns: Price fluctuations happen on a daily basis, and in most cases, they are much larger than with regular currencies or any other financial instrument.
• Independent alternative: Many people see the value of breaking out of the existing financial infrastructure. Crypto holders aren't at the mercy of other people and organisations like those with traditional assets are.
• Accessibility: 59.5% of the global population uses the Internet, and even if they don't have rights to traditional exchange systems, they do with crypto. In particular, DeFi gives access to financial services to everyone, regardless of their location and status. 
• International trade: The peer-to-peer mechanism of blockchain allows for cross-border transfers and transactions. This further opens up possibilities to welcome more investors, which is mostly a good thing for a financial market. 

Conclusion

And finally, the question: is SafeMoon worth trade? It's a highly volatile asset, and an average person might be intimidated by the range of price changes. However, what experienced traders and investors understand is that market volatility can be a double-edged sword - more chances to enter the market favourable and equally more chances to lose on trades. 

If you want to test yourself, Libertex features multiple assets. Sign up for a Libertex demo account to explore its features and technical indicators in a simulated trading environment.

Please remember that CFD trading is inherently risky. Each trade carries the risk of loss in addition to possible success.