Safemoon — Another Meme Crypto?

Why is everybody talking about SafeMoon, from YouTube influencers to crypto Investors?

Thanks to Bitcoin and therefore the recent success of Dogecoin — an ironically created joke cryptocurrency — traders are finding a bevy of options for their speculative dollars. Stories within the media about newly minted cryptocurrency millionaires only fuel the fever to seek out the following asset to inflate

One of the more modern options is SafeMoon. It’s many of the hallmarks of a token that would see significant appreciation as buyers hope to jot down their own rags-to-riches stories.

Like most speculative assets, there are some flashing red lights that ought to give investors pause before putting their chips on the table.

A man in an exceedingly suit close to pop a bubble with a rising stock chart in it. SafeMoon wants to be too legit to quit.

History of SafeMoon

SafeMoon was created in March and is encoded to profit people who hold on to the asset rather than selling or trading it. It launched with 1 quadrillion tokens (that’s 15 zeroes), and has systematically eliminated some of these with each transaction.

It’s managed to become a $4 billion asset in about two months of existence, and its price has risen quite 1.5 million percent, even after a giant sell-off in the week.

Safemoon was founded by a U.S. military veteran who has likened the token to purchasing shares of Apple within the time period. It’s difficult to pinpoint the similarity beyond his hope that it’ll experience massive appreciation over time.

That feeling may be supported the supply-and-demand curve within the asset’s initial study. it is the kind you’d find in an Economics 101 course, and makes the case that as supply for Safemoon is destroyed, the value will go up.

Safemoon is not the easiest token to shop for. It’s currently available on eight crypto exchanges and encompasses a pinned tweet of a video showing the currency-swap process required to create a buying deal.

Despite the dearth of accessibility, the allure has been its promise to reward holders and penalize sellers. Incredibly, it is the third-most-visited page on coinmarketcap.com.

Is this another “how to get rich quicker” scheme?

As you would possibly expect, things aren’t that straightforward, the designers knew a way to work it out. Today, there are but 600 trillion SAFE tokens in circulation. That’s because whenever a holder transfers them to a different wallet.

There is a 10% penalty half that 10% is destroyed and half is distributed to a pool for other holders of Safemoon. It calls these “static rewards” and offers them to stay the hands of its 2 million holders steady.

That’s convinced some that because the tokens get more scarce, the value will rise. Of course, there should be demand for that equation to balance. Right now, interest is high.

However, history hasn’t been kind to people who bought something for the only real purpose of selling it to some other person within the future at a better price.

Besides the apparent risks of shopping for something with no uses and no intrinsic value, there is a tangled string of connections from the founder and people promoting it.

Why celebrities are pushing SafeMoon?

Despite positioning itself as decentralized finance, Safemoon includes a CEO and a chief operating officer. That COO spent the past few years managing a YouTube influencer who started pushing the asset to his 4 million followers when it absolutely was launched. Shortly at that time, other online personalities began promoting it.

To realize legitimacy, Safemoon commissioned blockchain security firm CertiK for an audit. The result probably wasn’t what they were hoping for.

There are good reasons to recline CertiK found 13 issues including one it deemed “major.” It seems, as those tokens from transaction penalties are collected, a big portion goes to an owner address. Right now, that address is worth $2.6 billion. That’s an enormous problem if the address seems to learn anyone aside from existing holders.

Although CertiK maintains that its audit isn’t an endorsement or approval, Safemoon’s Twitter handle promptly announced the audit was complete with a video boasting it had been “CertiK Approved.”

The most recent celebrity to market Safemoon is Barstool Sports founder Dave Portnoy. On Monday, he held a conference announcing he would be backing the crypto.

Even he told his followers to take a position at their own risk, saying it would be a Ponzi scheme and claiming he had no idea how it worked.

That’s admirable transparency and a good warning for anyone blindly following his moves. Of course, he also identified that if it is a Ponzi scheme, you ought to get in on the bottom floor. Approaching investing like that’s a decent thanks to lose money quickly.

Conclusion

The good thing about identifying any scam is to avoid it, not get in early to require advantage of others. For people who want they’re missing out on the crypto craze and are willing to gamble, it would be best to appear elsewhere for opportunities to roll the dice. The essential protocols of Safemoon are designed sort of a bank that adds a tenth fee anytime you create a buying deal. Few would open an account after hearing that promotional material. Safemoon seems even as compelling.

Think critically about investing and make decisions that help you become smarter, happier, and richer.