As digitalization has transformed almost every aspect of our lives, cryptocurrency also made its way to financial markets. Unlike traditional banking, cryptocurrency does not charge hefty fees upon transactions, cash deposits as well as withdrawal. So, people prefer using it as it is cost-effective when compared to the banking system.
Considering the massive shift in people’s digitalization preference, several firms also started investing and receiving payments through digital currency. As the days pass, we see that many cryptocurrencies are aiming for the moon, and some of the users have been lucky enough to reap the benefits of holding one of these gems.
A user was lucky enough to invest in a crypto that gained exponential popularity within two months. He turned $200 investment into $2.3 million by investing in the project before its launch. SAFEMOON is the newly launched crypto that is gaining the attention of many crypto enthusiasts and has been the source of the user’s success.
The user had purchased 322,166,793,708 worth $205.05 worth of coins using BUSD on 7th March, and just by holding them for 43 days, his coins are now worth $2.3 million.
What is SafeMoon?
This is a Defi token that processes three functions in each transaction: a burn, liquidity protocol acquisition, and reflection. The systems help the users by creating automatic yield and liquidity with each transaction. The system combines the RFI token omics with an auto-liquidity generating protocol. It has surged over 8000% in the last month and thus has attracted various crypto investors.
The SafeMoon protocol is built on the idea of penalizing the short-term holders and rewarding long-term investors. They charge a 10% fee for selling, and it gives half of it to the existing holders of the token. Although the token seems to have increased popularity and increased SafeMoon user, the token is only available on PancakeSwap (CAKE), and decentralized exchanges as WhiteBit and Bitmart.
The future goals of SafeMoon
According to SafeMoon’s whitepaper, they aim to combat the non-user-friendly farms for yield farming by providing static rewards and decreasing the inflationary pressure on the token. Also, the CEO of SafeMoon is intending to create an NFT exchange.
The market of small digital currencies remains speculative and highly volatile but the massive increase in SAFEMOON’s price can be contributed to the massive increase in speculation on the Defi space, specifically the Binance Smart Chain. The explosive growth of SafeMoon has been a catalyst to the increase in the Binance Smart Chain Defi space.
Is the SafeMoon Crypto a Scam? 3 Insiders Weigh In on the Controversy
The SafeMoon crypto has seen a huge rise in the weeks since its release. Now, users are calling it a scam.SafeMoon (CCC:SAFEMOON-USD) has seen a fall from grace in the last few days that has been almost as rapid as its rise. The altcoin, launched only weeks ago, is facing backlash from a Reddit Ask Me Anything that has users wondering if the SafeMoon crypto is a scam.
SafeMoon launched in Q1 as a moon-bound rocket in the shape of a decentralized finance startup. The coin’s claim to fame is its safety factor, rewarding users who hold onto their SafeMoon coins, rather than trading them away. In fact, the SafeMoon model punishes those who sell their tokens with a tax of sorts, which is then redistributed as a reward to SafeMoon holders.
The crypto saw a meteoric rise just weeks after launch, and has been doubling in price seemingly every day since launch. The unprecedented bull run is catching the attention of crypto traders everywhere, and until just days ago, it seemed poised to be the next Dogecoin (CCC:DOGE-USD).
A recent Reddit AMA is souring investors’ opinions on SafeMoon, however, and tanking the value of the coin. SafeMoon investors are turning their backs on the crypto as developers fail to answer user’s questions with substantive answers. The bad publicity is riding hot on the heels of rumors calling the crypto a scam.
Insiders Call SafeMoon Crypto a Scam in Wake of AMA
As SafeMoon acknowledged on its social media platforms, its latest AMA missed the mark. It seems users are getting fed up with the inclusion of unrelated content during AMA sessions. And now, insiders are warning investors against joining the SafeMoon community.
A crypto scam fighter on Twitter bearing the name WarOnRugs is campaigning hard against the token, which now has over 1 million users. They allege that the SafeMoon owner possesses over 50% of the coin’s total liquidity.
Other SafeMoon owners and insiders are coming out against the coin now as well. Crypto influencer Lark Davis is going so far as to call the crypto a Ponzi scheme via Twitter. He doubled down on the critique and hearkened back to Bitconnect, a famous crypto scam.
Another SafeMoon investor is reporting unfair practices by the crypto as well. They are saying that the punishment for selling the coin is severe and serves only to line to pockets of developers. In selling shares of SafeMoon, the user, as well as other SafeMoon sellers, are reporting losses of over 50% upon withdrawals of the coin.
Right now it is unclear whether the SafeMoon crypto is a scam. However, investors should know that the controversy is certainly bubbling on Wall Street.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Reddit Debates around SafeMoon
SafeMoon seems to be the topic of the day for many, Is SafeMoon a good investment? Is SafeMoon legit? Should I buy SafeMoon? One of the topics on Reddit that has a pretty high position in google on the topic is SafeMoon a scam or not is the one below:
What is your opinion about the SAFEMOON token?So far, the creators and developers of SAFEMOON seem to be very open and accessible answering questions very regularly in SAFEMOON’s official discord “General” voice chat and very open to the community. Also there are plans to renew the website, the logo, get listed in more accessible exchange soon.
I find it very similar to HOGE when it started, but some people say SAFEMOON is even better because investors already bought HOGE before went public, which caused the price to fall so much.
I would like to read more opinions-perspectives about it.