SafeMoon Pros and Cons
SafeMoon Pros and Cons
Source: @crypto-guides
There is a section in the "What is SafeMoon crypto (SAFEMOON)? - SafeMoon Guide" titled "SafeMoon pros and cons"; with this post I hope to contribute an item or two we don't usually hear about from both legacy media and even cryptocurrency-oriented media. Feel free to adjust as needed for Guide purposes.
Pros
Precision
While most cryptocurrencies go to 8 decimal places, Safemoon (symbol SAFEMOON) goes to 9 decimal places. This provides more opportunities for investors (and speculators) to go to the moon. That 9th decimal place makes a huge difference in...
Performance
Although SAFEMOON was released in March 2021, it had increased its value 12,000% to go from its initial USD 0.000000001 (8 zeroes) to its all-time high USD 0.000012000 (4 zeroes). Although SAFEMOON fell from its ATH to USD 0.000004000 (5 zeroes), that's still a 4,000% increase since its debut in March 2021. If Bitcoin goes on a bull run later in 2021 as anticipated, SAFEMOON will go along for the ride.
Risk v. Reward
With cryptocurrency in general, it's usually a good bet to invest in them using disposable income-- never use rent money or mortgage payment money to buy cryptos. Having said that, about the surest cryptocurrency to buy is Bitcoin. Thanks to smart contract functionality, Ethereum is another sure bet over the long haul.
People should not confuse Safemoon with either of these two leaders in cryptocurrency. However, as long as people know what they'e getting into, it is possible to win big if the overall crypto market does well.
Given how social media had propelled Safemoon to popularity in just a few months of its exisence-- not just on Twitter but also on TikTok-- the YOLO view ("you only live once") takes advantage of people's high risk tolerance in exchange for the Big Win.
While much can be lost with cryptos-- Bitcoin as much as Safemoon-- just as much, if not more, can be gained with Safemoon. Keep the rent money for rentt, but putting lottery money in Safemoon could yield big rewards over time.
Cons
Centralization
As a BEP-20 token, Safemoon uses Binance Smart Chain to secure its network. Binance Smart Chain uses a consensus algorithm called Proof of Authority (PoA). Binance Smart Chain is operated by the Binance exchange, and Binance itself selects the validators (or witnesses) used to approve transactions for insertion into the blockchain. This makes Safemoon a more centralized token than Hive, which uses Delegated Proof of Stake (DPoS) in which its witnesses (or validators) are selected by community vote.
While not as centralized as China's CBDC, it is more more centralized than most altcoins, especially those used for decentralized finance. The CEO of Binnance described Binance Smart Chain as "Centralized Decentralized Finance" or CeDeFi. By implication, Safemoon is centralized to a higher degree than other cryptocurrencies (especially ERC-20 tokens based on Ethereum).
Use Cases
-- or lack of use cases. While Safemoon has been described as a token for DeFi, its main purpose appears to be "going to the moon"; the name itself gives this away. Rare is the crypto HODLer who doesn't want his/her crypto to go to the moon, but a crypto should exist to solve some problem or at least (in the case of Dogecoin) gain widspread acceptance as-is.
Penalties
Many crypto investors know that it's better to HODL than to get in and get out at the first sign of trouble. Cryptocurrency encourages HODLing, but is OK with speculation.
One of Safemoon's defining characteristics is the imposition of a 10% fee for selling SAFEMOON. The intention is to encourage HODLing, but many people would see that as a fear tactic.
Even so, a good number of people still choose to buy into Safemoon.
Availability
Since Safemoon is a BEP-20 token, the fact that it uses Binance Smart Chain makes it harder to invest in. At the moment, it is not available on other centralized exchanges such as Coinbase, Gemini, and eToro. For now at least, the only place to get SAFEMOON is the DeFi exchange Pancakeswap.
Also, purchases of Safemoon are done using BNB, the Binance cryptocurrency. To get BNB, they have t be purchased through Binance. This is another example of the degree of centralization of Biance, Binance Smart Chain, and BEP-20 tokens.
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