What Is SafeMoon? Is It Really a Safe Investment?

This crypto bull run has shown many similarities to what happened in the 2017 run-up. In that cycle, cryptocurrencies seemed to be sprouting out of the ground at an alarming rate.

Fast Facts:

  • SafeMoon is a BEP-20 token launched on the Binance Smart Chain (BSC) ecosystem on March 8, 2021.
  • SafeMoon is built to have three core components: 
          • The first is the “reflection” where SafeMoon transactions are charged a fee that gets distributed among holders of the token. 
          • The second is a fee charged on transactions that will be given to various liquidity pools on Pancake Swap and other platforms.
          • The third is a token burn that occurs on each trade.
  • SafeMoon is built on the Binance Smart Chain which uses proof-of-authority as its consensus mechanism. 
  • In proof of authority, the block creators are known as validators. These validators are pre-approved and chosen by Binance, making the blockchain centralized.
  • Due to the centralization of the Binance Smart Chain, users of its platform need to trust Binance and rely on it for security.