SafeMoon has risen back up a bit after crashing this week, as experts caution buyers to beware of investing in the crypto coin. As it stands, not much is known about SafeMoon, which was launched less than a month ago, and has already had considerable ups and downs considering its short life span. To buy SafeMoon, users need to set up a crypto wallet in which coins can be kept, with the organisation recommending either Trust and Metamask to its users. SafeMoon rewards investors by issuing a 10 percent penalty fee on sellers and redistributing five percent of that to those who have held on.
This week, the value of SafeMoon plummeted by 50 percent within 24 hours, going from $0.00000944 to $0.00000216.
As of Saturday morning, however, it has rallied and its value has increased to $0.00000629, according to Coin Market Cap.
As things stand right now, on Sunday Morning the value of SafeMoon is at $0.00000605.
In a positive tweet to its 378,000 followers, SafeMoon said: “We are so incredibly lucky to have the HOLDERS that have been with us day one, we see you… we see your commitment… we see your patience.
READ MORE: Will SafeMoon go to the moon? 6 things to know about SafeMoon
“From the whole SafeMoon team THANK YOU for coming on this journey and putting your trust in our hands.”
Those who want to buy SafeMoon, which just as Bitcoin uses a blockchain technology, have to buy a Binance Coin (BNB) first, and then essentially swap it for SafeMoon currency.
However, experts have warned the value of SafeMoon is likely to continue being volatile and have urged buyers to beware.
Some have even said this model of requiring more and more people to keep buying in order to drive up the price makes it a very risky investment.
The company advises to “remember getting to the moon takes time and the longer you hold the more tokens you pick up”.
But Laith Khalaf, a financial analyst at investment platform AJ Bell, said SafeMoon “doesn’t sound too different from a pyramid selling scheme”.
He said: “You’re simply reliant on someone further down the line being wiling to pay more than you did to turn a profit, which is a risky bet indeed.”
Mr Khalaf advises investors to “steer clear – at least until a bit more is known about SafeMoon”.
If you’re looking for an investment model that guarantees you money, then SafeMoon probably isn’t for you.
The coin is very volatile, having recorded a 910 percent increase in its share price in just four days from April 16 to April 20, according to Coinbase.
There is no telling if the price will rise, fall, or ever reach to be $1, so be very wary if you’re still sure you want to put your money in.
While SafeMoon claims it will reward people who buy and hold on to the cryptocurrency, its value still depends entirely on people holding it, meaning it can’t promise to reward investors.
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