If you follow crypto news, you may have heard the name Safemoon many times in the first half of 2021. What is Safemoon? What are its features?
What is Safemoon?
Safemoon is a member of a group of tokens known as meme coins. Memecoins are cryptographic tokens or coins based on internet memes. Notably, Safemoon's name comes from the popular slang term "going to the moon" on cryptocurrency discussion forums. This expression refers to cryptocurrency prices that rise sharply in a very short time.
The most important thing to know about Safemoon is that it is, not a cryptocurrency, but a token that works on Binance Smart Chain (BSC). In crypto terms, a coin is a cryptocurrency that runs on its own blockchain. It's not the same as a token.
Features of Safemoon
Safemoon has several unique features that have drawn both praise and criticism. For example, Safemoon's smart contract charges the holder who chooses to sell 10% exit fee. Half of this fee is "burned" and the rest is redistributed to the remaining token holders, increasing their holding value over time.
Another feature of Safemoon that has been widely criticized is the ownership pattern of the token's current distribution. The majority of Safemoon's overall liquidity is held by members of the founding team. These funds are in what is known as a lockup, but this concentration of ownership in the crypto space is often a cause for serious concern. This is due to the impact that so-called large holders have on price fluctuations at the time of sale.
Further criticism of the founding team has come as several promised developments in Safemoon's "ecosystem" (including a bespoke wallet application) have so far fallen short of expectations.
Final thoughts
Safemoon crypto is a token, not a coin. Just a few months into 2021 has seen big price swings, with prices rising tens of thousands of percent in April and May and then losing most of those gains by August. Such volatility is not uncommon in the crypto space. Despite the bad press, if you think the best time for Safemoon cryptocurrency tokens has yet to come (remember cryptocurrencies are taxable), getting your hands on Safemoon tokens is very it's simple.
As you know the answer to "what is Safemoon?" and you want to buy Safemoon, you need to download a wallet such as MetaMask or Trust Wallet, then buy Binance tokens and exchange them for Safemoon, or buy Safemoon directly on a centralized exchange.
