SafeMoon burst onto the cryptocurrency scene in March 2021 and has already caught the attention of investors after some impressive price movement. Looking ahead to the remainder of 2021 and beyond, it seems that the token is being touted as a major opportunity for returns and the project has some upcoming developments that could establish it as a major player on the crypto market.
The token itself has been labelled a meme coin, in the same vein as Shiba Inu and Dogecoin. Whilst many investors are reluctant to back this arguably more volatile breed of cryptocurrency, 2021 has shown us that the community-driven approach of these projects can lead to significant price growth in a short space of time.
With this in mind, we’ve put together five reasons why Safemoon might make you profit.
1. Meme Coins Are More Popular Than Ever
Meme coins have had a fairly unusual journey in the cryptocurrency saga. Dogecoin started the trend back in 2013, having been set up as a way of satirising the hysteria surrounding crypto investment at the time. However, the joke backfired somewhat as DOGE ended up being quite a hot investment property in its own right.
However, the trend appeared to be short-lived and the idea of meme coins was all but forgotten until 2020. By this stage, Dogecoin had proven its longevity and had amassed a loyal following of die-hard supporters, who were notoriously vocal across social media and discussion platforms. With this in mind, projects like Shiba Inu emerged to try and muscle in on DOGE’s success.
Things really took off in 2021, after a Reddit-driven campaign, along with a timely comment from Tesla mogul Elon Musk, saw the price of Dogecoin soar by several thousand per cent in just a few weeks. This established meme coins as a legitimate investment opportunity and inevitably saw attention turned to other projects in this space.
SafeMoon was launched in March – at the height of DOGE-mania – and quickly established itself as a major name. In April, SAFEMOON soared by over a thousand per cent. If this wasn’t impressive enough, the token then went on another bull in May, this time reaching a record high that was an increase of more than 1500% on its price just 6 weeks earlier.
2. Safemoon Has Plenty To Offer
The cryptocurrency market has changed dramatically over the course of the last 12 months and, whilst Bitcoin continues to hold the number one sport, it seems that the days of cryptocurrency being a simple digital alternative to cash are over. Now projects are expected to offer more than a means of simple value exchange.
SafeMoon arguably represents a new generation of meme coin as it not only offers a legitimate cryptocurrency with all the usual decentralised fundamentals, but the team behind it also seems intent on building a wider DeFi infrastructure around the namesake token.
Aside from its unique reward mechanism, which we will look at later, SafeMoon is gearing up to launch its own proprietary exchange, which promises to deliver a ‘revolutionary’ new approach to what the team behind SafeMoon call cryptonomics.
In addition to the upcoming DeX, SafeMoon is also launching a specialist hardware wallet for storing cryptocurrency and the project’s developers have even signalled their interest in the game tech industry, by setting up a dedicated SafeMoon server for the popular online game, Minecraft.
3. Safemoon Has Great Branding
Being a meme coin means Safemoon’s success rests on its ability to generate a strong following. Tokens like Dogecoin and Shiba Inu owe much of their success to a loyal community. Dogecoin was fortunate enough to be the only notable meme coin for many years, whilst Shiba Inu has managed to gain a foothold in the market thanks to excellent branding.
SafeMoon has boldly described itself as ‘The Fastest Growing Crypto Community on Earth’ and its branding is centred around a space theme, playing into the popular ‘to the moon’ phrase that has come to be associated with significant bulls in the cryptocurrency market.
The team behind SafeMoon has done a good job of communicating the more sophisticated aspects of the project, whilst managing to maintain an eye-catching and suitably light-hearted approach. Whilst a good website and quirky cultural appeal won’t convert directly to price growth, they are a key factor in building a wide appeal and fostering a loyal community.
4. Safemoon Potentially Offers More Stability
A key tenet of the SafeMoon project is that it has in-built mechanisms to contribute towards price stability. This is an important difference between SafeMoon and other meme coins like SHIB and DOGE. Whereas investors in other meme coins must try and predict sudden surges – which often involves day trading and/or shortselling, SafeMoon actually encourages the holding of its native token.
How does it do this? Well, anyone selling SafeMoon tokens faces a 10% fee. A proportion of this fee is then redistributed amongst the remaining SAFEMOON holders. In theory, this will reduce high volume selling of the token and in turn, could also reduce volatility.
In addition, SafeMoon also uses the fees charged for selling the token to maintain liquidity, which again services to stabilise its price on the market. There is also a manual burn protocol, which sees a certain amount of SafeMoon locked away in a burn wallet, permanently removed from circulation.
5. Safemoon Allows You To Earn Passive Income
As we’ve discussed, SafeMoon charges a 10% fee to anyone selling the coin. Half of this fee is then redistributed amongst existing token holders, which effectively rewards those holding the token over the long term. This is perfect for those who like to see their crypto tokens put to work, rather than simply sitting in a wallet with the hope they will appreciate.
However, there’s more. There is also the SafeEarn protocol. This is a separate entity from SafeMoon but it effectively works in conjunction with SafeMoon’s reflection system and increases the reward for token holders. Once again, this is likely to appeal to those who are into liquidity farming as it makes a great way to earn passive income from SafeMoon.
Bottom Line
So, can Safemoon make you profit? If analysts are to be believed, you may not have to wait long to see 100% growth from the token – perhaps just 6 months, according to some forecasts.
Projects like Dogecoin and Shiba Inu have already demonstrated the power of a loyal community, both having experienced substantial price runs in 2021 and both amongst the largest cryptocurrencies in terms of market capitalisaion. With its emphasis on stability and upcoming DeX, there’s every reason to think that SafeMoon has what it takes to compete in the niche field of meme coins.
