A NEW cryptocurrency called SafeMoon has gained popularity in recent days and as a result, surged in value.
It launched this month, but what exactly is SafeMoon? Here, we explain everything you need to know.
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But first, a word of warning: buying cryptocurrencies as well as stocks and shares is a risky business.
Investing is not a guaranteed way to make money, so make sure you know the risks and can afford to lose the money.
Cryptocurrencies are also highly volatile, so your cash can go down as well as up in the blink of an eye.
What is SafeMoon?
Not a huge amount is known about the cryptocurrency meaning the risk to your investment may be even higher.
5 risks of crypto investments
THE Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
Developers have held “Ask Me Anything” meetings to answer questions and explain more about its origin.
SafeMoon claims it will reward people who buy and hold onto the cryptocurrency.
For those who sell the currency on will be slapped with a penalty.
Its Facebook page states: “Remember, getting to the moon takes time and the longer you hold the more tokens you pick up.”
SafeMoon charges sellers a fee worth 10% of the amount of the cryptocurrency they are flogging to buyers.
It then rewards investors that hold onto their purchases by redistributing 5% of the cash gained from the penalty charge among those who already have the currency.
SafeMoon recorded a 99% rise on Sunday after Bitcoin had its biggest single day drop for months.
It comes after Dogecoin’s price increased 91% in 24 hours after Elon Musk tweeted about the cryptocurrency – and a 20,000% increase from this time last year.
The cryptocurrency, which started as a joke, has risen 365% in the past month to close to 20p per unit.
It comes despite the currency not being listed on any cryptocurrency exchange platforms
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Dogecoin has risen from relative obscurity to become a cryptocurrency that is making punters serious money.
Brits are being warned they risk losing all of their money if they invest in bitcoin and other cryptocurrencies.
It comes after a ban on some crypto-related investment products.
Bitcoin shares surge to RECORD high as Mastercard and BNY Mellon announce cryptocurrency projects
