SFM Price Prediction: Will the SafeMoon Token Rebound?

Key Insights:

  • SFM has fallen 30% since its previous rally in June.
  • Its downtrend coincides with a corresponding drop in Bitcoin’s price.
  • Technical analysis shows that short-term sentiment on SFM is bearish.

SafeMoon is a decentralized finance (DeFi) token created in March 2021 by former U.S. Department of Defence analyst John Karony. It relies on four functions during each trade: reflection, liquidity provider acquisition, a burn mechanism and contribution to the ecosystem growth fund.

The token’s price has fallen 30% since its previous rally in June and SFM could potentially be facing more sell-offs. Notably, its downtrend coincides with a corresponding drop in Bitcoin’s (BTC) price which is now trading below $20,000.

Price Action

SFM started its journey in December 2021 at $0.0017. After a bull run commenced that same month, the token climbed from $0.00165 on December 30 to $0.0029 the next day.

However, its price plummeted to $0.00158 shortly thereafter on January 22, 2021, wiping out over half of its value in the space of 18 days.

SFM is currently trading at $0.000468 and ranks 3001st in the list of cryptocurrencies worldwide by market capitalization at $263 million. Its price is down over 3% in the last 24 hours.

SafeMoon daily price chart
SFM 040722 Daily Price Chart

The SafeMoon crypto is on the verge of testing $0.0004 support again and has been trading sideways since its price saw a rejection beneath a descending parallel channel. The coin is down an astonishing 93% from its all-time high of $0.007232 set on January 4, 2022.

More recently, SFM showed signs of recovery after consolidating between the $0.000584 and $0.000414 price levels since June 19. However, a run for the 70.5% retracement level at $0.000876 would have cemented the possibility of an upswing.

SafeMoon weekly price chart
SFM 040722 Weekly Price Chart

Technical Indicators

SFM has formed a bearish pennant pattern and is trading above the key $0.00045 support level, with the likelihood that bearish momentum will continue throughout this month. This means that the next key support level to watch will be at $0.00040.

Technical analysis shows that short-term sentiment on SFM is bearish, with 9 indicators displaying bullish signals compared to 13 bearish signals at the time of writing.

The daily simple and exponential moving averages (EMA) are giving sell signals, while the relative strength index (RSI) stands at 39.

An RSI reading of 30 or below indicates an oversold or undervalued condition, while a reading above 70 would suggest the asset is becoming overvalued or overbought.

In terms of a SafeMoon crypto price prediction, SFM could see its price falling to $0.000000000421 by August 2022, dropping to $0.000000001 in January 2024 and hitting $0.000000000482 by January 2025.

What does the Future Hold for SafeMoon (SFM)?

Key Points 

  • SafeMoon has held up better than much of the rest of the crypto market in recent months.  
  • But SFM is nonetheless trading lower by around 85% versus earlier year highs.  
  • SafeMoon faces accusations of being a pump and dump scheme and its executives of siphoning funds, undermining investor trust.  

SafeMoon has held up better than much of the rest of the cryptocurrency market in the past few months. While the total cryptocurrency market has lost around 50% of its market capitalization since the start of May, SafeMoon’s SFM token that runs on the Binance Smart Chain (BSC) is about 10% higher.  

SFM currently trades just above $0.0005, around 30% higher versus earlier monthly lows in the $0.0004 area, though down around 35% from earlier monthly highs around $0.0008.  

But recent outperformance masks a massive drawdown from earlier annual highs. After the SafeMoon developers released a new version of their token last December (SafeMoon V2), the new tokens shot to as high as $0.0032 in January, meaning the token has lost over 85% of its value since these highs.  

At the January peak, SafeMoon V2’s market capitalization was nearly $2 billion, impressive stuff, but still nowhere near SafeMoon V1’s market cap from last May, shortly after the project’s initial launch. 

What is SafeMoon? 

SafeMoon is a self-proclaimed “DeFi” (which stands for Decentralised Finance) token that critics say offers no true utility to the crypto space, but employs incentives to encourage investors to hold onto their tokens. Each SafeMoon transaction is subject to a 10% “tax”. 

SafeMoon says on its website that 4% of this tax goes towards redistributions back to all existing SafeMoon token holders. 3% is supposedly added to a liquidity pool. 2% of tokens are allegedly burned and 1% is added to SafeMoon’s Ecosystem Growth Fund.  

The punitive tax on transactions, as well as the prospect of earning redistribution fees when others transact, encourages SafeMoon investors to HOLD.  

What Next for SafeMoon? 

Cryptocurrency market conditions are currently dire and this is weighing on SafeMoon just like the rest of the space. But when the macroeconomic backdrop improves over the next few quarters/years (I.e. inflation comes down, allowing central banks to revert to easy policy), most expect a powerful cryptocurrency market rebound.  

Will SFM surge back towards record highs and onwards safely towards the moon? 

Many think not. 

SafeMoon faces widespread accusations of being an elaborate fraud/pump and dump scheme. SafeMoon’s price action since its launch in March 2021 (of both V1 and V2 of its token), with swift upwards swings followed by massive bearish corrections certainly has all the markings of a pump and dump scheme.  

SafeMoon has also in the past employed a tactic popular amongst rug pull/pump and dump crypto scam artists – Paying big bucks to gullible social media influencers to shill the token. Various big-name celebrities including YouTubers Jake Paul and Ben Phillips, as well as rapper Lil Yachty, all pushed the project.  

Last month, popular cryptocurrency scam hunter Coffeezilla released a series of videos on YouTube accusing the SafeMoon project of being an elaborate fraud. Not only was SafeMoon originally conceived of as a pump and dump scheme, Coffeezilla concluded, but the forced migration from the V1 token to the V2 token was linked to over $100 million in investor losses. Meanwhile, Coffeezilla accused SafeMoon executives of embezzling transaction tax funds that were supposed to have gone to the Liquidity Pool.  

Separately, SafeMoon and a number of prominent social media stars who promoted are also facing a lawsuit. “The defendants’ intention behind the celebrity-driven marketing of the SafeMoon token was to eventually sell their holdings for a profit when numbers were high,” the lawsuit says.  

Despite all of these accusations, SafeMoon does still have a robust community of supporters and believers. But sooner or later, SafeMoon’s developers are going to have to live up to their promise of being a “human-focused technology and innovation business expanding blockchain technologies for a brighter tomorrow”, or investors will continue heading for the exit.  

5 Most Popular Cryptos of the Week: DOGE, SOL, ADA, SFM, CEL

Key Points 

  • Cryptocurrency markets were battered this week as traders priced in faster Fed tightening and a US recession.  
  • Markets have mostly been going sideways in recent days, despite the Fed delivering a 75 bps rate hike on Wednesday.  
  • Five of the most popular cryptocurrencies were DOGE, SOL, ADA, SFM and CEL.  

Cryptocurrency markets were battered this week, with most of the week’s losses coming on Monday as investors reacted to last Friday’s hot US CPI data and record weak US Consumer Sentiment data by pricing in a more aggressive US Federal Reserve tightening cycle at the same time as rising US recession risk. The Fed delivered on these expectations for an accelerated tightening cycle on Wednesday by lifting interest rates by 75 bps (as recently as last week a 50 bps move had been expected).  

Cryptocurrency markets, which had already shed about $300 billion in market cap between last Friday and this Monday, took the Fed policy announcement in their stride. As of Friday, total cryptocurrency market cap is around $890 billion, roughly in line with its pre-Fed announcement levels.  

But the crypto bears remain hopeful that more downside might be in store in the weeks ahead. The Fed signalled that it could hike rates by another 75 bps at its next meeting and that it expects rates to end this year in the mid-3.0% range, before moving close to 4.0% during 2023.  

Powell’s tone on the need to address inflation, even if that means a (slightly) weaker labour market and slower growth sends a message that the Fed will not stop tightening even if the US economy does slide into recession (as many now expect). The only thing stopping the hawkish Fed will be inflation coming back under control.  

That is all very hawkish stuff and the knowledge that the Fed isn’t going to be there to save the day when growth weakens could weigh heavily on risk assets such as US equities and crypto in the weeks ahead. For now, total crypto market cap is likely to remain within the $840-$960ish billion range it established this week, as trade consolidates after recent big bearish moves.  

In terms of the largest cryptocurrencies by market cap, Bitcoin is currently trading just above $21,000, well within the $20,000-$23,000 range established over the past few days, but way down from its levels above $30,000 as recently as the start of last week.  

The psychologically important $20,000 level hold for now, but any break below could see BTC/USD quickly test its 2017 highs just below $20,000 and open the door to a run lower towards the 2019 highs under $14,000.  

BTC/USD Weekly Chart. Source: FX Empire

Ethereum, meanwhile, is consolidating close to $1,100, having at one point dipped to just above the critical $1,000 level. ETH/USD is looking to establish a footing within the $1,000-$1,270ish ranges it has established over the past few days, after its swift tumble from the $1,800 area between last Friday and this Monday.  

ETH/USD Weekly Chart. Source: FX Empire

Outside of the top two coins, here are five of this week’s most popular cryptocurrencies.  

Dogecoin (DOGE) 

Interest in the internet’s favourite dog-inspired memecoin has spiked in the past two days, after the news broke on Thursday that Tesla and SpaceX CEO Elon Musk is being sued for using his “pedestal as the world’s richest man operate and manipulate the Dogecoin pyramid scheme for profit, exposure and amusement”. Keith Johnson, the man suing Musk, alleges he was “defrauded out of money”. He is reportedly attempting to sue for $258 billion and wants to represent all of those who have lost money investing in Dogecoin since 2019.  

According to crypto social intelligence website LunarCrush, social engagements regarding Dogecoin have spiked in the last two days from around 100-150 million prior to the news breaking to nearly 900 million alone on Friday. But the spike in buzz around Dogecoin hasn’t helped its price. DOGE/USD was last trading in the $0.0575 area, around the middle of this week’s $0.050-0.063ish range. Dogecoin currently trades around 92% below its record peaks printed in May 2021 at just above $0.76.  

DOGE/USD Daily Chart. Source: FX Empire

Solana (SOL) 

According to LunarCrush, Solana has consistently clocked about 200 million social engagements per day this week. The cryptocurrency is one of the few to be trading in the green on the week. With SOL/USD currently changing hands around $31.50, it stands to gain just over 3.0% on the week and is near the middle of this week’s approximate $26-36ish range.  

However, its failure on Thursday to break above resistance around $36.00 in the form of May and early June lows is a bearish sign in the short-term, technicians think, as well as its continued failure to test its 21-Day Moving Average (near $38.00). Indeed, selling as SOL/USD approaches its 21DMA has proven to be a highly profitable strategy going all the way back to the middle of April.  

SOL/USD Daily Chart. Source: FX Empire

Cardano (ADA) 

Cardano was the next most popular cryptocurrency this week, having clocked around 100 million social engagements per day this week, as per LunarCrush data. Like Solana, ADA/USD looks on course to end the week about 1.5% higher close to the $0.50 level, around the middle of this week’s $0.43-0.55ish range.  

Cardano’s failure to get back above its 21DMA (at $0.55) this week suggests that the positive momentum associated with Fear Of Missing Out ahead of the blockchain’s highly anticipated upgrade later this month (called the Vasil hardfork) has run its course. However, for now, support in the form of the recent this week’s and late May lows around $0.43 should shield ADA/USD from a near-term test of its sub-$0.40 annual lows printed at the start of May.  

ADA/USD Daily Chart. Source: FX Empire

SafeMoon (SFM) 

Social engagement relating to SafeMoon has jumped on Friday to over 30 million, LunarCrush data shows, up from earlier weekly levels in the 15 million range. The jump in interest has coincided with a more than 35% intra-day spike in SFM/USD to above $0.006 from earlier weekly levels under $0.0005. That still leaves it about 80% below earlier annual highs at $0.0032, as the SafeMoon continues to face accusations of being an elaborate rug-pull scheme.  

Celsius (CEL)  

In wake of crypto lending/borrowing service provider the Celsius Network’s decision to halt investor withdrawals on Sunday amid what it has called “difficult market conditions”, the platform’s CEL token has seen spectacular volatility. Amid speculation of the Celsius Network’s insolvency, CEl/USD swung as low as $0.09 this week and then back as high as $2.57 within the space of 48 hours.  

At present, the cryptocurrency is trading around $0.60, with its 21DMA (at $0.63) offering resistance over the last two sessions. In the absence of clarity surrounding Celsius’ solvency, the outlook for a rebound is slim.  

SafeMoon Rises by 5.6% As the Crypto Market Loses $123 Billion

Key Insights:

  • Safemoon (V2) added a 5.6% rise as the rest of the market plunged.
  • The altcoin is rallying on the back of developments such as the upcoming Safemoon card.
  • Whales currently hold about 50% of the 1 Trillion SFM supply.

SafeMoon V2, which spawned out of the original protocol of SafeMoon back in December 2021, was at a good pace earlier this month.

And it revived that pace today unlike every other altcoin in the cryptocurrency market, for whom the last 24 hours have not been the best day of the month.

Another One!

FXEmpire had recently reported on the events that led to the split in the protocol from which SFM was created. And today, SafeMoon is grabbing attention once again thanks to the ongoing bullishness with the altcoin.

Since February, the coin had been in a bearish state, with the price indicators providing no support either.

According to the Bollinger Bands, the altcoin was pretty vulnerable to volatility throughout the second half of February and the first half of March. And the volatility is significantly high for the altcoin as now as well.

Thus, bearish cues kept dominating the price action, and the bias of the Bollinger Bands (white line) continued acting as resistance until the end of March.

But thriving bullish cues observed in the first few days of April pushed the price higher, and the rise to $0.00124 flipped the bias into support for the coin.

However, as of this week, the coin went back to being bearish and lost over 32% to trade at $0.0008399 yesterday.

But today, the coin is up 5.63%, trading at $0.0008872 at the time of writing. The ongoing ecosystem developments might help the coin rally further.

SafeMoon is up by 5.63% compared to its price as of yesterday | Source: CoinMarketCap

How Safe Is SafeMoon?

That is the question that tends to keep investors unsure about the altcoin. SafeMoon, although it has a bolstering social presence, its rest of the tokenomics is concerning.

The asset has a total supply of 1 Trillion SFM, and just 32 whales hold over 50% of the same. Furthermore, the coin does not even have a solid user base. In all, there are less than 1 million SFM holders.

SafeMoon supply distribution is dominated by whales who hold over 500 billion SFM | Source: Dune

Plus, with over 544 billion SFM held just with these whales, any dumping from them could ruin the rest of the retail investors within seconds.

But SafeMoon is doing an excellent job of alluring investors, as with the upcoming SafeMoon Card, which will draw in many people even if they don’t currently own any SFM.

Thus investors are advised to be careful while committing to such assets.

Everything You Need To Know About SafeMoon – What Lies Ahead?

What Is SafeMoon?

SafeMoon describes itself as decentralized finance (DeFi) token. It runs on the Binance Smart Chain blockchain, making it a little less accessible when compared to other digital assets like Bitcoin or Ethereum.

Known for its tremendous volatility, the cryptocurrency was designed in a way to encourage long-term investment and discourage people from selling the coin.

According to SafeMoon’s creators, half of the fees charged during transactions goes to a liquidity pool, in an effort to better maintain its price stability.

The price of the token soared reaching an all-time high of $0.000014 on April 20, shortly after its debut in March, according to CoinMarketCap.

SafeMoon is currently ranked 217th popular of all cryptocurrencies. The crypto gets its name from the phrase, “Safely To The Moon,” which means that the company’s ambition is to rise safely.

Quick Stats:

  • High transaction fees of 10%, with 5% split among existing holders and 5% goes to the liquidity pool,
  • The crypto already reached over 2 million users,
  • Currently trading at $0.000001361 at press time.

With all the hype around the new coin, it is still valid to wonder if SafeMoon is safe or not. The whole point of creating this crypto is to attract investors and thus drive up the price.

Features and Advantages

The SafeMoon Protocol has three fundamental features that occur with each transaction.

  • Reflection or static rewards approach aims to correct the problems of volatility by encouraging investors to hold onto their tokens.
  • Liquidity Pool Acquisition creates a solid price floor for both buyers and sellers. By doing so, it can prevent larger dips when whales decide to sell their tokens later.
  • Manual Burn is a process that permanently removes tokens from circulation. This process creates increased scarcity, thus raising the crypto price.

Data show that more than 400 trillion SafeMoon tokens have been burned so far.

On the Downside

On the flip side, SafeMoon has been subject to a number of disadvantages like its extreme volatility and lack of liquidity. Also, no major vendors accept SafeMoon as a payment method, and it is difficult to trade it for fiat currencies.

Above all, since these trading and cryptos are not regulated mostly, there is a high risk that there won’t be any protection if things go wrong.

The main concern spinning around investing in this crypto is that, like the value of stocks and shares, the price of a SafeMoon coin could fall. And, if investors were to sell at the dip, they would not only incur capital losses but also a 10% penalty.

Crypto Criticisms

SafeMoon’s design had produced a loyal group of early investors, but it has also opened the crypto up to criticism from industry experts and skeptics.

For instance, the crypto was referred to as a Ponzi scheme, pump and dump, an allegation that was denied by the company’s CEO. Few critics also worry about the manual coin burns which might reduce its circulation.

From the critics’ point of view, crypto appears to be an extremely high-risk speculative investment. For instance, a Twitter user that aims to expose crypto scams said in a Tweet,

“Owner owns more than 50% of the liquidity and refuses to fix it. He could pull LP and sell tokens, creating a rug pull [meaning an exit scam]. The likeliness of losing all funds: Absolute.”

Crypto analyst Lark Davis compared SafeMoon to BitConnect which ended up being a Ponzi.

From SafeMoon to SafeMoon V2

The crypto upgraded from SafeMoon to SafeMoon V2 in December 2021, which brought in a new total SafeMoon supply of one trillion.

By upgrading, the crypto consolidated its tokens to a 1000:1 ratio. This means that V2 has upgraded contracts that have the capacity to change the coin’s consolidation formula.

Additionally, SafeMoon carries features such as increased security and accessibility. Many investors view SafeMoon V2 as the key to unlocking new all-time highs.

Price Predictions – What Lies Ahead

“I’ve been there from the beginning and trust the team, community and project,” a SafeMoon investor Besmir Zuta told FX Empire. “We are all optimistic that we will see a price increase in the near future.”

Like Besmir, a number of wallet investors gave a positive outlook. According to the price prediction website Wallet Investor, SafeMoon is expected to rise to $0.00179 by March 2022, $0.00254 in January 2023, 0.00335 in January 2024, and $0.00429 by January 2025.

With its V2 upgrade now live, the price of SafeMoon can reach anywhere between $0.0038 and $0.018 in 2022, according to Telegaon’s predictions. The average is likely going to be $0.0079, it noted.

It is, however, too early to predict what impact SafeMoon’s sale tax will have on potential investor appetite.

Safemoon Price Prediction – A Move Back Through to $0.0000034 Levels Would Bring $0.0000040 into Play

At the time of writing, Safemoon was flat at $0.0000033.

A mixed morning saw Safemoon rise to an early morning high $0.0000036 before hitting reverse.

Falling short of the first major resistance level at $0.0000037, Safemoon slid to a mid-day low $0.00000311.

The reversal saw Safemoon test the first major support level at $0.0000031 before a recovery to $0.0000033 levels.

SAFEMOONUSD 161121 Hourly Chart

For the Afternoon Ahead

Safemoon would need to move back through the $0.0000034 pivot to bring the first major resistance level at $0.0000037 back into play.

Plenty of support would be needed, however, for Safemoon to breakout from this morning’s high $0.0000036.

Barring an extended crypto rally through the afternoon, the first major resistance level at $0.0000037 would likely cap the upside.

In the event of another extended rally through the afternoon, Safemoon could test the second major resistance level at $0.0000040.

Failure to move back through the $0.0000034 pivot would bring the first major support level at $0.0000031 back into play.

Barring an extended sell-off through the afternoon, however, Ethereum should steer clear of sub-$0.0000030 levels.

The second major support level sits at $0.0000028.

Looking beyond the support and resistance levels, we saw a bearish cross this morning. The 50 moving average crossed through the 100 pressuring Safemoon early on.

Through the 2nd half of the day, a further pullback of the 50 MA from the 100 would bring support levels back into play.

For the bulls, a move back through the $0.0000034 pivot would be needed to bring $0.0000040 levels into play, however.

SafeMoon Investors Eye Catalysts Including Launch of V2

Something is brewing over at SafeMoon. The DeFi project is close to launching a widely anticipated V2. The team is targeting greater adoption and additional use cases with the launch of V2.

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SafeMoon V2 involves the launch of an upgraded contract that has a change to the coin’s consolidation formula. Consolidation is a DeFi feature that the SafeMoon teams likens to reverse stock splits with the added idea that it will be beneficial for investors.  It is a way for the team to “tidy up the numbers” without changing the actual ownership percentages among investors.

In addition, V2 features include “increased quality, security and accessibility of SafeMoon” in anticipation of what the project describes as a “warp-speed future.”


The SafeMoon community also has their sights set on a “cool exchange listing” that according to SafeMoon CEO John Karony cited by the SafeMoonWarrior Twitter account will be coming soon. In addition, SafeMoon investors are anticipating a couple of key events, including an expanded crypto wallet and the launch of a crypto exchange.

SafeMoon Price

The SafeMoon price is not joining in the broader market rally today and is down about 4%. Over a longer term view, however, SafeMoon is doing just fine. Since October, the SafeMoon price has rallied over 160%. The recent declines could be investors taking some profits off the table in a broader market that is trading at all-time highs.

SafeMoon Wallet

The SafeMoon crypto wallet has been drumming up excitement among users because the team has been adding support for more coins. SafeMoon’s Karony revealed that the wallet would see additional listings this week and asked his followers which coins they would like to see.

One follower recommended meme coin Dogecoin, in response to which Karony said that he is also a fan and they are “working on implementation.” Others requested stablecoin Tether, while yet another follower requested a feature that warns users if they are about to transfer funds to “flagged scam BSC or ETH addresses.”

The latest new SafeMoon wallet listings announced on Nov. 5 include Shiba Inu, Chainlink and Aave.



SafeMoon is also preparing to launch a cryptocurrency exchange, which apparently is not tied to V2.

SAFEMOON Rebounds Around Critical 50% Fibonacci Retracement Level

SafeMoon is one of these altcoins that has caught the attention easily since its inception in March 2021, where it started to gather over one million investors. It’s a community-based cryptocurrency that keeps skyrocketing across the board, with the SAFEMOON token’s volume crossing the $6.64 million milestone in the last 24 hours.

PancakeSwap V2, the major exchange where SAFEMOON is listed, has over $3.24 million in supply. As of press time, according to data from CoinMarketCap, SafeMoon coin has a market capitalization of $2,551,259,824. The current circulating supply stands at 585,536.37B SAFEMOON.

Competitors Ahead

One of the major competitors of this token, Bitrise, has recently announced what it could be a gamechanger in the battle between both blockchain projects.

In fact, Bitrise launched a dApp wallet that expects to compete against the offerings of the SafeMoon project, according to the white papers released at the end of October.

¿To The Moon?

Still, from a technical perspective in the price action, SAFEMOON seems unstoppable despite the current retracement it has been witnessing since it hit the all-time highs last month at around $0.0000065. Now, the price is treading waters around the 50-period simple moving average (SMA) at the H4 chart.

Such an SMA could provide a demand zone for the cryptocurrency to bolster the buyers’ interest among the token, which also converges with the 50% Fibonacci retracement level at $0.0000039.

If a rebound happens around that area, SAFEMOON could resume the bull-run and eventually attempt a rally towards the first tough nut to crack at $0.0000053.


But bears could help deepen the current structure that points towards the south, targeting the Fibonacci retracement area of 61.8% at $0.0000033. That’s a golden ratio level according to the Fibo theory from a financial analysis’ perspective.

Overall, and according to the historical behavior of the altcoins, SAFEMOON could not be the exemption regarding a bullish mood at the end of the year once it clears out the critical hurdles on the path to the north. Thus, the optimistic scenario could get invalidated with a breakout below the $0.0000025 level, which belongs to the tops formed in the second half of October.

SafeMoon Rallies 9% as Investors Hunt Next Big Meme Coin

Altcoins are in focus as cryptocurrency investors look to find the next Shiba Inu out of the group. SafeMoon is one increasingly popular and controversial altcoin. Like Shiba Inu, SafeMoon is considered a meme-coin that largely trades on social media sentiment. And like most meme coins, SafeMoon trades for fractions of a penny and can be quite volatile.

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The SAFEMOON token has gained 9%-plus in the last 24 hours so far and boasts a market cap of $3 billion. Over the past week, the meme coin has more than doubled in value.

SafeMoon strikes a chord with sustainable investors for its focus on the environment. John Karony, SafeMoon CEO, has plans to build wind turbine farms, which are currently in the test phase.

The SafeMoon token can be purchased by first buying Binance Coin (BNB). SafeMoon has more than 500,000 wallet downloads on iOS and Android & counting, so let’s see what all the fuss is about.

SafeMoon Fuss

The controversy surrounding SafeMoon involves the supply. Big-league traders known as whales have been known to own enough of the supply to make investors nervous. If these whales should decide to cash out in what’s known as a “rug pull,” the other investors could be left holding the bag.

The trend appears to be that the SafeMoon whale dominance rate is not as high as it once was. One estimate suggests that the top 100 SafeMoon whales own 11% of the supply. Other estimates surmise that SafeMoon whales own 7% or 8% of the supply.

Either way, SafeMoon investors seems satisfied that token ownership is being diversified and spread across the  community rather than being controlled by a few whales. Though new whales appear to be sprouting up by the day.


SafeMoon Mechanics

The SafeMoon ecosystem comprises a protocol that boasts its own native DeFi token with the same name. The three main features attached to trades include:

  • Reflection, whereby “5% is reflected to all holders for passive income.”
  • LP Acquisition, whereby “5% is added to a liquidity pool.”
  • Burn, in which “a burn wallet receives a portion of the reflections to never be seen again.”

The SafeMoon ecosystem also extends to a soon-to-be-launched exchange that is focused on delivering “tokenomics” to the cryptocurrency industry. Shiba Inu has its own decentralized exchange (DEX) called Shiba Swap.

SafeMoon investors are also watching and waiting for a major exchange like Kraken or Binance to list their favorite meme coin. If this happens, it will bolster the profile and liquidity of the token and could be a catalyst for gains. So far it trades on Gate.io, BitMart and a few others.

The Rise and Rise of Micro-Cap Coins: Why Social Trading is Leading to a Crypto Penny Stock Craze

Huge volumes of dog and Elon Musk-themed coins built on online memes are arriving on the market and reaching huge trading volumes despite their small market caps making for extreme volatility for investors.

One key example of the volatility awash among these micro-cap coins can be seen in the Ethereum-based meme coin Dogelon (ELON), which managed to rocket 40,000% in a single day before undergoing a huge correction.

The significant rise of the asset comes after a trend of Ethereum-based coins created in tribute to Elon Musk and various dogs emulating the increasingly popular Dogecoin cropped up with significant levels of trading volume attached.

(Image: CoinGecko)

Another recent high-profile coin pump saw Shiba Inu climb drastically out of a six-month slumber to gain so much attention that the coin achieved a listing on reputable exchange Binance before buyers largely deserted the coin, leaving Shiba to fall 58% from its all-time high in the space of three days.

With more meme-based coins entering the market at a rapid rate and capturing the imagination of cryptocurrency investors looking to get rich from rapidly appreciating assets, the market appears to draw comparisons to the penny stock craze that’s currently sweeping Wall Street. But how is the rise of micro-cap coins impacting the world of crypto? And are investors aware of the risks associated with buying into such volatility?

The Rise of Crypto Gambling?

Is investing in micro-cap coins a gamble? Well, it’s fair to say that any cryptocurrency investment is a gamble considering the relatively delicate and volatile nature of the market. However, micro-investing carries a few distinctions that separate it from a straight-out gamble.

Notably, investing tends to offer much longer timeframes than gambling. When you place a bet on a roulette wheel, you’ll know the outcome in a few moments. Furthermore, your stake in the bet is final once the wheel starts spinning – meaning you can’t change your bet or decisions.

There should also be no external factors involved in a spin of a roulette wheel that impact the outcome over time.

When it comes to investing, these factors are a little different. Firstly, the bets you place on micro-cap coins could take a matter of months – even years – to play out. As we saw in the case of Shiba Inu, it took six months for the coin to appreciate. There’s also a continuous flow of information that investors are capable of accessing before they make their decisions.

However, it’s important to note that while some micro-cap coins have valid purposes – particularly as the world of NTFs is starting to see new projects arrive and offer opportunities for investors, some coins purely exist on a meme basis to pump and dump. The less-than-transparent world of crypto also opens the door to rug pulls from developers who hold a significant stake in the coins they create.

In the case of SafeMoon, another token that’s driven by social media sentiment, anti-scam crypto communities have warned about the coin’s owner holding over 50% of the liquidity of the coin – making it especially vulnerable to ‘rug pulls’ where the owner withdraws their stake, collapsing the value of the coin. Although it’s worth noting that SafeMoon has since undergone an independent audit.

Maxim Manturov, Head of Investment Research at Freedom Finance Europe, highlights that meme stocks in traditional finance are also prevalent and that it’s vital for investors to always research their investments: “An own research is always a top priority; however, everything what happened to these meme stocks is nothing but speculation. The more information one can get, the deeper understanding one will have.”

Mainstream Crypto’s Backlash Against Meme Coins

The twisting and turning narrative surrounding meme coins ramped up recently when Vitalik Buterin, creator of Ethereum and crypto billionaire, donated a collection of meme coin shares amounting to $1.5 billion to various non-profit organizations around the world.

Most significantly, Buterin transferred 500 ETH and over 50 trillion Shiba Inu (SHIB) – worth around $1.14 billion at the time of the transaction, to the India COVID-Crypto Relief Fund.

Although it appears that Buterin’s offloading of dog-themed meme coins came after the leading name in the crypto space received vast unsolicited donations from investors around the world, the remarkable act of philanthropy has had a catastrophic impact on certain micro-cap coins, and particularly on SHIB.

The huge transaction spooked investors, playing a key role in a 42.5% drop in SHIB’s price over the past 24 hours.

Some commentators have interpreted Buterin’s mass sell-off of meme tokens as a backlash against the rise of micro-cap coins. Due to the wild popularity of coins like Shiba Inu and larger meme coins like DOGE, Ethereum fees have rocketed to all-time highs as investors attempt to access their coins. The decision to sell off high enough volumes of dog coins, crushing investor confidence in meme tokens in the process, may have been a calculated move to ease the burden on ETH.

As the cryptocurrency market continues to gather new interest and attract more investment, it’s likely that we’ll see many more meme tokens blink in and out of prominence. Although some may have the potential to make early investors some significant profits, it’s absolutely vital that investors conduct thorough research into the coins that interest them before parting with their money. Just like in the world of penny stocks, some investments can make holders rich, but many more fail to get off the ground.