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If you search online for "SafeMoon price prediction," it's easy to find stories speculating on "how high" this upstart cryptocurrency might go.
What these stories avoid, or at least downplay, is how low the SafeMoon price might go.
And I'm here to tell you the bad news: SafeMoon is anything but safe. The odds are very high that this overhyped crypto will not only fail to make you rich, but will wipe out any money you invest in it.
In other words, my SafeMoon price prediction is that it will blow up and go to zero - and within a couple of years, will end up on the ever-growing heap of "deadcoins."
Unfortunately, SafeMoon is part of a trend of new coins that have popped up in recent months in response to the dramatic spike in value of Bitcoin, Ethereum, and other top cryptocurrencies. Opportunists are using those gains in legitimate coins as bait to tempt people who felt they missed out.
Here's why investors should avoid SafeMoon...
Why the SafeMoon Price Is Destined to Collapse
SafeMoon is a very new project, having launched March 8. That's the first red flag. It's risky to trust a brand-new coin unless it has the backing of well-known entities.
It's a BEP-20 token, which just means it's built on top of the Binance Smart Chain network (as ERC-20 tokens are built on the Ethereum network). It's relatively easy to create such tokens.
Another problem is that SafeMoon does not appear to have a well-defined purpose other than "mooning." That's crypto slang for a soaring price. The coin's name implies a "safe" trip to the "moon" - in other words, big gains.
According to the SafeMoon website, the plan is to add an NFT exchange and "video-game integrations" followed by "integrating SafeMoon with African Markets in addition to setting up a Charity drive."
That all sounds very noble, but there's little reason given for why developers should choose to use SafeMoon over the dozens of other crypto platforms available.
And the distinct features this coin does have don't make you want to buy. Selling SafeMoon incurs a 10% penalty, which is designed to encourage investors to "HODL."
The coin supply is another major red flag...
This Is the Opposite of Scarcity
The maximum supply of SafeMoon is a stunning 1 quadrillion. That's 47.6 million times bigger than the max supply of Bitcoin, which is 21 million. CoinMarketCap reports the current circulating supply at 642.8 trillion.
Oversupply tends to result in very low prices - which has the psychological effect of making a coin look cheap. As I write this, SafeMoon is trading at $0.00000416. It sure looks like a great deal compared to Bitcoin, which is trading at about $55,000.
And people certainly are getting tempted. Search for SafeMoon is through the roof. And it's the No. 1 most viewed coin on CoinMarketCap.
This is similar to what you see with a lot of cheap penny stocks of otherwise worthless companies. People get suckered into buying a stock at $0.10 a share because they envision getting rich when it hits $1 or $5.
TODAY'S BEST CRYPTO BUYS
Three tiny digital coins are gearing up for a rally. One trading for around $12 could deliver a 638% profit by the end of 2021.
TODAY'S BEST CRYPTO BUYS
Three tiny digital coins are gearing up for a rally. One trading for around $12 could deliver a 638% profit by the end of 2021.
But often these cheap stocks are part of "pump and dump" schemes where the folks promoting them cash out at the top, leaving later buyers with huge losses as the stock price, lacking fresh buyers, plummets.
Indeed, the messages on the SafeMoon Twitter account raise some troubling questions. They tend to be heavy on hype and light on substance. One recent example from April 26: "We can see the moon, HOLD on it's about to get exciting." A rocket emoji and moon emoji were added for emphasis.
Sadly, it appears the SafeMoon price depends on drawing more "believers" into the fold.
Laith Khalaf, financial analyst at investment platform AJ Bell, likened SafeMoon to a pyramid scheme.
"You're simply reliant on someone further down the line being willing to pay more than you did to turn a profit, which is a risky bet indeed," Khalaf told the UK's Daily Express.
Some early SafeMoon investors may already regret having bought the token. It's down 70% from its April 20 peak of $0.00001400.
While SafeMoon could pump again, this coin is not worth the risk. Investors have lots of other far better options for gaining exposure to cryptocurrencies.
The Digital Gold Rush of the 21st Century
Our resident Silicon Valley insider is recommending three under-the-radar digital coins as today's BEST crypto buys.
They're much smaller and more affordable than Bitcoin, with up to 10X the growth potential as Dogecoin in the coming years.
One is trading for around $12, and predictions suggest that by the end of this year, the price could sit at $88.56 - a 638% profit.
To learn about all three - and discover how even a small stake could transform into a small fortune in 2021 - click here.
Follow me on Twitter @DavidGZeiler and Money Morning on Twitter and Facebook.
About the Author
David Zeiler, Associate Editor for Money Morning at Money Map Press, has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.
