How To Buy SafeMoon In Australia

SafeMoon is a cryptocurrency token launched in early 2021 on the BNB Smart chain, a blockchain initially developed under the umbrella of the Binance ecosystem.

Throughout 2021, SafeMoon received celebrity endorsements from sports blogger David Portnoy, rapper Lil Yachty, and YouTuber Jake Paul, which helped quickly drive up its value.

At the time, SafeMoon’s most distinctive feature was that it charged a 10% fee whenever a person sold the token. In other words, if you sold $1,000 of SafeMoon, you would pay a $100 fee on the sale. This ‘sale tax’ was in addition to any fees you may owe a crypto exchange for facilitating the sale.

“[At the time] The developers of SafeMoon say that this is done to encourage long-term holding, by both discouraging selling and rewarding holders of the coin,” says Shaun Heng, vice president of growth and operations at CoinMarketCap, a price tracking website for cryptocurrencies.

The project would take the proceeds of all sales fees and give 50% to token holders in a distribution called a “reflection”. The other half of the fee went into a liquidity pool SafeMoon used to maintain price stability.

SafeMoon did not have any other special use case besides being a store of value. It doesn’t facilitate any automated contracts or decentralised applications like Ethereum.

The SafeMoon token is now down over 98% since its all-time high price in January 2022, and the team’s executives are facing criminal charges related to fraud conspiracy, wire fraud conspiracy and money laundering conspiracy.

The project filed for chapter seven bankruptcy in December 2023, indicating that there will not be an attempt to restructure and relaunch the project as is common with other crypto projects that have filed for bankruptcy.

In December 2021, SafeMoon launched an updated token version called SafeMoon V2. The new token aimed to consolidate the original version at a ratio of 1 to 1000, and significantly lower transaction costs. Given that the project has filed for bankruptcy, it is apparent that the migration did not prevent it from failing.

As of 2024, it is still possible to buy SafeMoon tokens despite the project’s bankruptcy and the ongoing criminal charges against its executives. However, potential buyers should exercise extreme caution and thoroughly research the risks of investing in a project facing such significant challenges.

There are some significant hurdles involved in buying SafeMoon, the biggest for beginners is that the only way to pay for purchases of SafeMoon in Australia is with other cryptocurrencies on a decentralised exchange. That’s because it’s not currently listed on most exchanges that accept fiat currency, like dollars.

Which brings up another of SafeMoon’s challenges: Major exchanges like CoinBase and Kraken do not support trading in SafeMoon. It’s also not available on apps like Robinhood in the US.

If you don’t already have crypto, you’ll likely need to create an account on another exchange that allows you to exchange dollars for coins, as you can with many of Forbes Advisor’s choices for best crypto exchanges.

You’ll then have to withdraw the coins from the exchange, place them in a downloaded wallet and then interact with a decentralised exchange.

Given the project is essentially dead, you will find it extremely difficult to buy the tokens due to the non-existent liquidity available on SafeMoon pools.

Given the project’s bankruptcy and criminal charges against its executives, investing in SafeMoon could be seen as equivalent to burning your money. The token’s value has already plummeted by over 98%, and the ongoing legal and financial issues will likely lead to the project trending towards zero for eternity.

Moreover, the criminal charges against SafeMoon’s executives, which include fraud conspiracy, wire fraud conspiracy, and money laundering conspiracy, raise serious questions about the project’s legitimacy and the trustworthiness of its leadership. Investing in a project with such significant legal troubles is financially risky and ethically questionable.

In light of these developments, it is difficult to justify investing in SafeMoon, even for those with a high-risk tolerance. The potential for losses is all but certain.

Britton warns, “I would suggest that anyone considering SafeMoon should run away screaming, or do some due diligence and then run away screaming.” The combination of bankruptcy and criminal charges is a major red flag that should deter most investors from considering SafeMoon as a viable investment opportunity.

If you are still tempted to invest in SafeMoon despite these warnings, it is crucial to understand that you are essentially gambling with your money. The project’s chances of recovering from its current troubles and delivering significant returns are slim, and the risk of losing your entire investment is high.

Instead of taking on such excessive risk, focusing on more established and reputable cryptocurrencies is advisable. As Britton suggests, coins listed on major exchanges with significant market liquidity are generally safer bets, as they are more transparent, better regulated, and easier to buy and sell.

Diversifying your crypto investments across multiple projects and asset classes can also mitigate risk. Investing in a reputable crypto exchange-traded fund, for example, can provide exposure to various cryptocurrencies while reducing the risk associated with individual projects like SafeMoon.

Ultimately, the decision to invest in SafeMoon or any other cryptocurrency is a personal one that should be based on a thorough understanding of the risks involved. However, given the severe legal and financial issues facing SafeMoon, it isn’t easy to make a case for investing in the project at this time. Investors prioritising safety and stability should steer clear of SafeMoon and focus on more reliable investment opportunities in crypto.

This article is not an endorsement of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class.  Cryptocurrency is unregulated in Australia and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency, and seek advice from an authorised financial advisor.