If you’re familiar with the crypto world you’ve undoubtedly heard of SafeMoon. The Utah-based company is less than a year old but has gained an impressive following, with millions of users holding SafeMoon tokens or coins.
Ever since Bitcoin came into being several years ago, thousands of entrepreneurs have created their own cryptocurrencies. SafeMoon is one of these thousands and has had success in part because their push on social media platforms got millions of retail investors on board.
What entices some investors to SafeMoon is the company’s claim that the structure of buying and selling tokens will cause the price of a token to go up over time. “On every buy and sell transaction, there’s a 10 percent fee,” SafeMoon CEO John Karony explains. “I call that the great compromise between those who want to day trade, and those like me who just want to put money into a cryptocurrency and then just hold. With Bitcoin, what’s the reward for holding? It’s this speculation that after a year or so, it’ll be worth more than what it was before. Now with SafeMoon, you have more SafeMoon after that year. With Bitcoin, you don’t have more Bitcoins at the end of the year.”
Some crypto experts, however, are skeptical of SafeMoon’s model, which also “burns” some tokens with every transaction, reducing the available supply of the original one quadrillion tokens available. “You have this game of chicken where, if other people are selling, there’s…
