Whether we think it’s rational or not, Safemoon is extremely popular.
This is especially true with investors who may be new to the cryptocurrency scene and easily influenced by the hype of exciting marketing campaigns and celebrity endorsements.
In this section of our LeoFinance SafeMoon guide, we go over the 4 biggest reasons why SafeMoon is a popular investment.
Keep in mind that being a community built on top of the decentralised Hive blockchain, we can’t help but be highly sceptical of a project like this.
Take the advice given here with a grain of salt.
The tokenomics, or the economics of a cryptocurrency like SafeMoon, are extremely interesting.
You see, technically SafeMoon is what’s called a deflationary cryptocurrency.
This means that the supply of SafeMoon tokens is designed to decrease over time.
But when it comes to the tokenomics of SafeMoon, we’d be more inclined to call SafeMoon a pyramid scheme rather than sound deflationary properties.
We say this because when you buy SafeMoon, you’re charged a 10% fee by the network on the transaction.
5% of this fee will be burned to create deflationary pressure on the token’s total supply of 10,000,000,000,000,000 (lol).
With the other 5% of the fee being redistributed to SafeMoon HODLers.
What the fee is meant to do, is encourage people to hold their tokens for the long term instead of selling at the first sign of trouble.
But as you can see, SafeMoon relies on new people continuously buying the token in order to increase its value for those who bought earlier.
[draws a triangle on the board.]
“...I have to go and make a call.”
No matter how many times you explain to people that Bitcoin is divisible to the 8th decimal place, the concept of unit bias is always there.
We’re all only human beings after all and the fact that 1 Bitcoin is priced at $40,000 USD is always going to be somewhat of a barrier to entry for many.
But as we’ve seen during Dogecoin’s rally to new all time highs, people just seem to resonate with cheap, fun sounding cryptocurrencies.
If you had have bought just $1000 worth of Dogecoin in 2019, you’d already be a millionaire today.
An absolutely mind-boggling statement, but a true one nonetheless.
With SafeMoon being so cheap, we’re seeing even seasoned cryptocurrency investors buying SafeMoon in order to try and jag the next Dogecoin.
While Safemoon is yet to replicate the gains that we’ve seen in Dogecoin, the hype (or hope...) certainly hasn’t subsided.
For some reason, people love to know what celebrities are doing and yes, SafeMoon has a B-grade celebrity endorsement of its own.
Having no intention of falling behind, we’ve already seen the founder of Barstool Sports Dave Portnoy, appoint himself as leader of the Safemoon crypto project.
In what Portnoy dubbed a shitcoin announcement, he announced via Twitter that he’s ploughed $40K into SafeMoon crypto.
At least Portnoy was honest in his assessment of SafeMoon, calling it out to be the ponzi scheme that we alluded to it being in the section above.
Just keep in mind that the entire purpose of SafeMoon is to get new people to buy.
Pyramid scheme and pump and dump are other terms that Portnoy could have used to describe his SafeMoon investment.
With that in mind, let’s now compare the timestamp on that Tweet to the top of this current crypto market cycle.
[checks notes.]
Yep, that was the day of the top.
Hilarious.
No matter where you are in the world, buying SafeMoon crypto on your favourite decentralised exchange is easy.
This is because SafeMoon is a BEP-20 token that has been issued on the Binance Smart Chain (BSC).
To buy Safemoon:
As you can see, buying SafeMoon is a pretty easy process that even the least technically savvy can follow.
Just be aware of that 10% tax we explained in the tokenomics section above!
Direct from the desk of Dane Williams.
Why not leave a comment and share your thoughts on why SafeMoon is popular within the comments section below? All comments that add something to the discussion will be upvoted.
This SafeMoon crypto blog is exclusive to leofinance.io.
