There’s a new hot cryptocurrency gathering investors’ attention instead of Dogecoin. It’s called Safemoon, and it has all the looks of what made Dogecoin popular in the first place.
The rise of Safemoon
Dogecoin has suffered in recent days from a bumpy ride with investors. The darling Dogecoin was getting all sorts of attention leading up to Tesla CEO Elon Musk’s appearance on “Saturday Night Live.” After Musk called Dogecoin a “hustle” on “SNL,” investors sold their holdings, leading to a quick drop in Dogecoin’s value.
So, experts have turned to the cryptocurrency Safemoon as a potential investment opportunity. Per Yahoo! Finance, Safemoon is worth around $0.000007, giving it huge room to grow in value if more people invest,
- This is similar to Dogecoin’s original rise. As the Deseret News reported, Dogecoin was worth $0.0023 back in July before spiking to $0.70 in the last few weeks. That doesn’t sound like a lot at first. But when you invest a lot of money into it, the slight spikes can lead to huge gains over time if you’re lucky and if the market works in your favor, experts say. Nothing is guaranteed.
So what is Safemoon?
Safemoon is a new cryptocurrency with almost no history. According to Benzinga, Safemoon began trading in March at $0.000000001 per Safemoon coin. The cryptocurrency’s value jumped to $0.000012 before dropping back down to $0.000004. That’s a 1,000% gain in a few months.
- Safemooon “doesn’t have any clear use cases,” though, according to Benzinga. This means you can’t use it to buy real things yet.
Is Safemoon a scheme?
Possibly. According to Benzinga, Safemoon resembles “a pyramid scheme instead of a sound monetary policy” since investors are charged a 10% fee when they sell their holdings. And 5% of that fee is given back to other Safemoon investors.
- “Essentially, investors rely on more people buying into Safemoon to increase their investment,” according to Benzinga.
So what’s the deal? Should you invest? Well, it sounds a little sketchy. But, per Benzinga, “most investors would agree that Safemoon has higher potential for returns than DOGE, albeit an extremely high risk investment.”