SafeMoon price prediction 2021: Can the cryptocurrency reach $1?

SAFEMOON launched earlier this year - and it's already attracting attention from cryptocurrency investors.

We explain what you need to know about SafeMoon and how its price is predicted to change in 2021.

But first, a word of warning: buying cryptocurrencies and decentralised finance tokens 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 and decentralised finance tokens 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 SafeMoon meaning the risk to your investment may be even higher.

SafeMoon technically isn't a cryptocurrency but a DeFi token, according to its website.

DeFi stands for decentralised finance token. They are very complex but essentially aim to disrupt the finance world to enable people to follow and lend in peer-to-peer networks, without needing a bank.

Like Bitcoin they use a complicated method called blockchain technology.

SafeMoon claims it will reward people who buy and hold onto the cryptocurrency.

While those who sell the currency 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."

This is known as multi-level marketing or a pyramid selling scheme.

Experts warn that these can sometimes be a sign of a scam and make it a very high risk investment.

Laith Khalaf, financial analyst at investment platform AJ Bell, previously told The Sun that although long-term investment is encouraged, SafeMoon "doesn't sound too different from a pyramid selling scheme".

He added: "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."

Safemoon price prediction for 2021

The value of Safemoon is currently sitting at $0.000003803 - up almost 23% over the past 24 hours, according to CoinMarketCap.

In comparison, it hit its peak on April 20 when it reached $0.000014.