Dogecoin may be the crypto on everyone’s lips lately, but a challenger has appeared. SafeMoon has been blowing up online and here’s everything you need to know about it, including how to buy it.
First up it’s worth noting that none of this is financial advice. Cryptocurrency is extremely volatile and buying it is risky, so do it at your own risk.
What is SafeMoon?
SafeMoon is the latest hot ‘crypto’ doing the rounds online right now.
Launched in March 2021, its value has risen exponentially in the last few days:
But it’s not actually a cryptocurrency in the same way that Bitcoin or Dogecoin is.
SafeMoon is a decentralised finance token, also known as DeFi. In extreme layman’s terms this means it exists on the blockchain and doesn’t use traditional financial intermediaries like banks, or even most cryptocurrency exchanges, like Coinbase, Binance or Swyftx.
The idea behind this is to encourage peer-to-peer exchange instead. It is also looking to solve the volatility issues that some other crypto has faced up until this point.
Community seems to be at the heart of SafeMoon. The developers didn’t even keep tokens to themselves before launch.
“Dev burned all team tokens and participated in the fair launch with everyone else,” the SafeMoon website reads.
According to the SafeMoon white paper there is a total token supply of 1 quadrillion, with a launch supply of 777 trillion.
As for the name itself, it seems to be derived from the popular ‘to the moon’ catch phrase that has been doing the rounds ever since the GameStop stock controversy earlier this year.
The website itself says ‘Safely to the Moon’ which seems to tie in with the aim to make it a non-volatile DeFi that rewards buyers who hold.
It rewards you for having diamond hands
So how does it do this?
If you buy SafeMoon and then sell it, you will be hit with a 10 to 12 per cent transaction fee. This is huge and will certainly make some crypto traders think twice before trying to pump and dump the token.
But there’s another upside to holding onto SafeMoon.
The longer you hold onto it the more you can actually earn. This is because 5 per cent of transaction fees from sold SafeMoon gets redistributed amongst the current token holders.
“Holders earn passive rewards through static reflection as they watch their balance of SafeMoon grow indefinitely,” the website says.
Considering how volatile SafeMoon is itself right now (I’ve seen it swing wildly even just over the course of half an hour) perhaps not everyone has gotten the memo yet.
But this is certainly an interesting concept and quite cool if it actually works.
Here’s what the SafeMoon white paper has to say about it:
“Static rewards solve a host of problems. First, the reward amount is conditional upon the volume of the token being traded. This mechanism aims to alleviate some of the downward sell pressure put on the token caused by earlier adopters selling their tokens after farming crazy high APY’s. Second, the reflect mechanism encourages holders to hang onto their tokens to garner higher kick-backs which are based upon a percentages carried out and dependant upon the total tokens held by the owner.”
How to buy SafeMoon
So if you can’t use a popular crypto exchange to buy SafeMoon, how do you do it?
It’s a little bit complicated and it may vary for you, but this is how I did it.
Firstly you’ll want to work out how much SafeMoon you want to buy, keeping in mind transaction fees and the like.
- Download Trust Wallet, an Ethereum-based crypto wallet that you can use to buy SafeMoon
- Buy Binance Coin (BNB) or buy BNB in on your regular crytpo exchange and then transfer it to Trust Wallet.
- It’s important to note that if you buy on another exchange there may be a minimum spend attached, and you will be charged transfer fees
- Tap on the BNB icon
- Tap the ‘more’ icon
- Click ‘Swap to Smart Chain’
- A pop up should appear, telling you the transfer may take a few minutes
- Go back to the ‘wallet’ tab to make sure your Smart Chain is sitting there
- Tap the ‘browser’ tab
- Search for ‘PancakeSwap’ (this is a decentralised exchange used for swapping Binance Smart Chain tokens)
- Go to the ‘trade’ tab in Pancake Swap and click ‘exchange’
- In the ‘from’ box select BNB from the drop down menu
- Enter the amount you want to swap to SafeMoon
- In the ‘to’ box search for SafeMoon or use its contract address: 0x8076c74c5e3f5852037f31ff0093eeb8c8add8d3
- A pop up will appear, asking you to set the ‘slippage tolerance’ to 12%. Check the ‘I understand’ box and then hit ‘continue’
- Set the slippage by clicking on the settings icon in the ‘exchange’ box right above the ‘from’ box. Set to 12%
- Now you’re good to swap! Complete the transaction
If everything is successful you will be able to see your SafeMoon holdings back in the wallet tab of Trust Wallet.
You add SafeMoon by clicking the two dots in the top right of the wallet tab. Search for SafeMoon and toggle it on. Your holdings should now show automatically.
This isn’t working with my iPhone or iOS device
Now if you tried to do the above on an iPhone or iPad you may have hit a road block when it came to hitting the browser tab to find Pancake swap. You’re not wrong, it’s just not there by default. But there’s a workaround.
- First you will want to follow all the steps up to, and including swapping BNB to smart chain
- Open Safari and type trust://browser_enable
- A pop up will ask ‘Open this page in ‘Trust’?
- Click ‘open’ and you’ll be taken back to Trust Wallet
- The browser tab should now be at the bottom and you can now continue following the above steps
One again, cryptocurrency is extremely volatile, even in spite of well-intentioned devs. Like the stock market, you should never risk money you can’t afford to lose.
Disclosure: the author bought some cold hard SafeMoon for this story, and the lolz.