What Is Safemoon (SFM) How It Works & Where To Buy It?

Safemoon is a popular blockchain project that has garnered an immense amount of investment and support over the past few months. The protocol aims to provide token holders with lucrative ways to earn yields by adding unique utility to the token and incorporating a deflationary mechanism.

The SFM token is currently the 125th largest cryptocurrency by market capitalization.

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How Safemoon (SFM) Works

The blockchain protocol is built with the platform’s SFM token in mind. The token combines reflection tokenomics with auto-liquidity generation to maximize operations. 400 trillion tokens have already been permanently removed by the token’s deflationary mechanism.

Every SFM transaction has a 10 percent fee, of which 5 percent is distributed to SFM holders and the remaining 5 percent is further divided twice.

The percentage is divided in half; half is instantly paired with BNB and placed in PancakeSwap’s liquidity pool through a smart contract, and the other half is sold into BNB (Binance Coin).

With this approach, those Safemoon token holders who continue holding their tokens receive stable rewards, and those who sell their tokens are essentially penalized for doing so. Overall, this mechanism is utilized to try and keep the Safemoon price relatively stable.

Many consider the Safemoon protocol to have an award-winning community known as the Safemoon army. The project has seen the USD price fluctuate drastically over recent months, but the protocol’s tokenomics rewards SFM holders for not exchanging their tokens for fiat currency.

The current price of SFM is significantly lower than its all-time high, but many individuals have faith that there will be an increase in SFM stakers, reducing the current circulating supply and increasing the token price.

The ‘human-focused technology’ protocol has a growth fund, automatic LP, and the Safemoon website goes on to claim that its fair launch and venture philanthropy model are components that are an improvement on existing systems.

Safemoon v2 is the updated version of the project and implemented a drastic supply reduction of 1,000 to 1. The protocol claims to focus on LP acquisition, reflections, growth fund, and an ongoing token burn.

Users interested in learning more about the functionality of the project can refer to the Safemoon whitepaper.

What Is Safemoon (SFM) Used For?

The Safemoon protocol is utilized by individuals seeking to benefit from a crypto project which claims to pioneer new innovations in crypto technology. Owning the SFM toking allows users to benefit in various ways.

Additionally, token holders sometimes participate in swing and arbitrage trading, where they capitalize on price fluctuations in the SFM price.

Where To Buy Safemoon (SFM) Token

SFM has been a popularly traded cryptocurrency since the Safemoon project started gaining an excessive amount of attention in the media.

SFM tokens are commonly traded on most centralized crypto exchanges. Before you’re able to purchase SFM, you’ll need to deposit fiat money onto an exchange; sequentially, SFM tokens will then be credited to your digital wallet on the exchange.

The crypto exchanges below are amongst the safest place where you can buy, sell and store tokens.

SFM token holders can opt to transfer their tokens to compatible digital wallets where they can connect directly to the Safemoon website and make use of the various DeFi products.

Transferring tokens to a digital wallet is highly recommended because doing so gives users complete ownership of their crypto assets and private keys.

None of the abovementioned information is investment advice.

About Safemoon (SFM)

How long has Safemoon (SFM) existed?

Safemoon was initially launched on March 8th, 2021. John Karony founded the project, and the SFM cryptocurrency has seen significant price fluctuations since it was listed on exchanges.

What’s controversial about Safemoon (SFM)?

The crypto industry is notoriously decentralized, and this makes it relatively controversial in most people’s opinions. Before making an investment, users should always use caution and educate themselves as much as possible on the fundamentals of cryptocurrencies and blockchain.

Many fraudulent ventures aim to take advantage of unsuspecting investors who don’t do proper research before investing. Never commit more than you can afford to lose.

Let’s take a look at the top controversy surrounding Safemoon (SFM):

Safemoon Lacks Utility – The Safemoon project has recently seen a craze of attention in media. The team has prioritized advertising and even put up billboards in Times Square. This has drastically increased the reach of the project and given the cryptocurrency major exposure.
However, many individuals have invested in the project without conducting adequate research. Many have invested based on hype, and this could be a catalyst for significant losses in the future. The project is considered to lack utility, and many consider Safemoon (SFM) a meme coin that’s price only ”pumps” based on hype.

How many Safemoon (SFM) Tokens are there?

At the time of writing, Safemoon (SFM) has a circulating supply of 562,543,502,156

The total supply of Safemoon (SFM) is 1,000,000,000,000

Can Safemoon (SFM) be mined?

SFM tokens can’t be mined. Instead, the Safemoon protocol utilizes a unique deflationary mechanism that rewards SFM token holders.

Users can earn yields on SFM tokens by participating in various DeFi products such as staking, liquidity pools, and farming. Token holders will need to transfer their SFM token to a digital wallet to utilize these unique DeFi products.

A digital wallet can be connected to a decentralized website application such as Pancakeswap, which runs on Binance’s Build-and-build chain (BNB Chain).

What is the market cap of Safemoon (SFM)?

The market cap of Safemoon (SFM) is: the total amount of coins in circulation x the current market price of SFM.

Safemoon (SFM) Market Cap = 562,543,502,156 x $0.00047084 = $264 million (125th largest market cap)

SFM is currently one of the top 150 cryptocurrencies by market capitalization.

Biggest Competitors Of Safemoon (SFM)

Safemoon is seen as one of the most popular meme coins on the market (even though the founders don’t consider it a meme coin).

Most individuals that have invested in Safemoon believe that the token has the chance to increase exponentially in value – this is partly based on hype and lacks logical reasoning. The tokenomics of the project are good, but the utility of the project is lacking significantly.

Therefore, it’s best to compare Safemoon to other projects which are considered meme coins.

Safemoon’s biggest competitors are:

What Are The Future Plans of Safemoon (SFM)?

Safemoon is currently working on building a variety of DeFi products that it will use to offer consumers various opportunities to earn lucrative yields. The project is also working on building its global presence in the crypto community. Some of the most notable advertising campaigns that Safemoon has run have been Safemoon billboards in Times Square.

Additionally, the project will seek to increase the utility of its SFM token. The current tokenomics model of the project is seen as incredibly appealing and rewarding by most individuals.

Still, Safemoon will need to prioritize changing the narrative surrounding the project – many people don’t see it as a credible project with real-life utility. The team is going to have to work very hard to change the general community’s perception of Safemoon.

Pros And Cons Of Safemoon (SFM)

Pros:

Deflationary Mechanism – The tokenomics of the project incorporate a deflationary mechanism where a percentage of every transaction results in a portion of the SFM tokens being permanently removed and transferred to SFM token holders.

Cons:

No Major Exchange Listings – The sentiment surrounding the Safemoon project is generally negative, and many individuals believe it is a scam project that is taking advantage of retail investors. The crypto space is not very regulated, products on offer are often ambiguous, and the majority of investors don’t fully grasp the functionality and aims of the projects they invest in.
With that said, major exchanges fill the role of exposing users to projects that are deemed more credible and secure than other projects. Currently, SFM isn’t listed on any of the major exchanges, and many people consider this a significant drawback for the project and its credibility.
Driven By Hype – Marketing plays a vital role in the success of crypto projects. Especially because crypto is incredibly complex, and projects are trying to grow their adoption and increase the number of people investing in them. For example, most projects focus more on trigger words such as ”deflationary mechanism”, ”metaverse”, ”NFT”, and more to hook potential readers.
In most cases, the targeted reader doesn’t have a good enough understanding of these products but has heard the terms before – many projects use these terms to drive investment to their project without truly fulfilling on what they advertise.
Token Supply – Safemoon’s token supply is enormous in comparison to other blockchain projects. The team did perform a token supply reduction, but most people are deterred by the massive supply and would not choose to invest in the project because of this.
Meme Coin – Safemoon is seen as a meme coin that has no real-world utility. The project is trying to change this by building valuable products, but most people consider the project to be nothing more than a meme coin.