SafeMoon is a crypto token launched in March 2021, and it operates on the Binance Smart Chain blockchain. SafeMoon’s value increased by over twelve hundred per cent soon after its launch in 2021, after it was endorsed by celebrities and influencers like Nick Carter and Lil’ Yachty. It has since been called a ‘meme coin’, a slang used for cryptocurrencies that originate from an internet meme (which, in the case of SafeMoon, is the sudden price inflation after celebrity endorsements).

A newer, updated version of SafeMoon (SafeMoon V2) was released in December 2021 with a new contract giving owners of the older version a 1000:1 ratio on exchange (with no loss in value). A user can exchange 1000 SafeMoon V1 tokens for one SafeMoon V2 token for the same net value. The new SafeMoon V2 contract is more secure and provides developers with a better degree of control so changes and updates can be executed faster.

A feature of SafeMoon that sets it apart from other tokens and coins is the exit fee charged to sellers. If you decide to sell your SafeMoon tokens, you will be charged a ten per cent exit fee (on top of the transaction fees).

Of this ten per cent, four per cent is distributed among token holders, three per cent is added to a liquidity pool, two per cent is burned (removed from circulation), and one per cent is added to the SafeMoon Ecosystem Growth Fund, which is set up to help fund the development and improvement of SafeMoon.

This exit fee is put in place to prevent premature selling and to deter bad actors from dumping large volumes of tokens to dilute SafeMoon’s value. The concept of redistributing a part of the exit fee to token holders acts as an incentive for long-term holding.