Is SafeMoon a scam?
Let’s examine the most obvious reasons SafeMoon could be a scam.
While we’ve seen plenty of both new and old cryptocurrencies moon overnight for no reason, the SafeMoon moonshot is absolutely wild.
In this section of the SafeMoon guide, we try to answer whether SafeMoon is a scam, or whether it’s actually legit.
We answer the two biggest questions that continue to come up when investors try to find out whether SafeMoon is a scam.
1. Does SafeMoon’s tokenomics resemble a pyramid scheme?
The first question mark around SafeMoon is whether it’s a pyramid scheme, or even a ponzi.
When we earlier asked the question why is SafeMoon so popular, the ponzi-esque tokenomics was actually our biggest red flag.
While SafeMoon’s tokenomics say that they’re the way they are to incentivise HODLing, it’s literally the definition of a pyramid scheme.
The model followed is that profits made by early investors are based purely on others paying more for the token at a later date.
When you buy SafeMoon, you’re charged a 10% fee by the network on each transaction.
5% of this fee will be burned, while the other 5% is redistributed to SafeMoon HODLers.
If something looks like a duck, swims like a duck, and quacks like a duck...
Then it probably is a duck.
2. Have SafeMoon’s founders locked away 50% of its own liquidity pool?
A second question mark over the SafeMoon crypto project is around the founders locking away over 50% of its own liquidity pool.
While Safemoon’s CEO has stated that the liquidity is being held to keep the SAFEMOON token more secure, a level of trust is still required.
So who is the SafeMoon team:
- The CEO of SafeMoon: John Karony, an ex-analyst for the U.S. Department of Defense.
- The CFO of SafeMoon: Thomas Smith, an ex Director of Software Engineering or CTO for a variety of software-related companies.
What makes me really nervous, is that neither of SafeMoon’s founders has a proven track record in the cryptocurrency industry, let alone in DeFi.
DeFi coins like SafeMoon require a level of trust in the team, as well as in the security of the platform itself.
Something we’re not quite sure that we should, let alone can, give this team.
When Pancakebunny was hacked, we spoke about how important it is to find a DeFi platform run by a team that you can trust.
The biggest reason that so many here in the LeoFinance community have chosen Cub Finance is because of the team’s multi-year track record building scam-free crypto projects.
The SafeMoon team don’t have any sort of proven history to draw upon and the fact that 50% of its own liquidity pool being locked up even offers the option of a rug pull should be a huge red flag here.
Final verdict on whether SafeMoon is a scam
The more I read about and research SafeMoon crypto, the more it just feels like a scam.
All of the best crypto and blockchain-related projects are highly decentralised and usually open source.
SafeMoon on the other hand is entirely centralised, with the team maybe not directly controlling their own personal wallets of SAFEMOON, but having access to 50% of its own liquidity pool is the same thing.
Actually, it’s worse.
Even ignoring the tokenomics that make SafeMoon an actual pyramid scheme, the 50% of it’s own liquidity pool being locked up is the final nail in the coffin.
Whether there’s a rugpull, hack or code exploit, it’s on the cards.
SafeMoon is a scam.
Best of probabilities to you.
Direct from the desk of Dane Williams.
Why not leave a comment and share your thoughts on whether you think SafeMoon is a scam within the comments section below? All comments that add something to the discussion will be upvoted.
This SafeMoon crypto blog is exclusive to leofinance.io.
Posted Using LeoFinance Beta
Good shout-out. I have friends who have been recommending this, but I was immediately distrustful because of the name alone. I have learnt that things are often named the exact opposite of what they really are.
So it turns out that SafeMoon is most porbably neither safe... or going to the moon.
Who would have thought, huh?
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how about shiba-inu
I heard that the owners have a huge stock of the coin and that they could rugpull at any moment. I don't have funds to throw around so I wouldn't really take any chances
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Come check out !PIZZA
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@josediccus! I sent you a slice of $PIZZA on behalf of @cooperclub.
Learn more about $PIZZA Token at hive.pizza (9/20)
With so many permissionless, trustless alternatives, I don't know why anyone would take the risk of being rug pulled with any significant amount of money.
Don't take the 'chance'.
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I guess the promise of quick wealth would make some people take the chance
Posted Using LeoFinance Beta
Can't also shake off the fact that it's purely based on hype and offers no real value in the general scheme of things.
Hype and ponzi-esque tokenomics.
It's money, but you're not meant to spend it because if you do, you get taxed 10% on your transaction.
SafeMoon purely relies on more new people buying it to increase its price.
That's it.
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what do you think about shiba-inu it is same or diferent than safe moon
some diference, of could be a scam too.
We're going to creat a detailed crypto guide to SHIB soon.
Keep your eye out!
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Thank you for the detailed overview on Safemoon @forexbrokr. This project is prone to a rugpull as of now and it has no utility. It's like a marketing gimmick and I have mentioned the same in my latest post about Safemoon's Pros & Cons.
It's a risky investment because of the security risks and lack of usefulness.
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That sentence says it all really.
No way can I trust SafeMoon after doing the research for this crypto guide.
So dodgy.
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You are so right, def a scam. Instead of looking for gems out there, check this out in our own community, !PIZZA
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@forexbrokr! I sent you a slice of $PIZZA on behalf of @cooperclub.
Learn more about $PIZZA Token at hive.pizza (8/20)
It's always good to see more projects being built on Hive.
Good luck with Pizza.
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Isn’t safemoon a copy of the 2017 scam called Proof of weak hands? Pow3d
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I thought you were joking with that name, but just Googled it and Pow3d is actually a thing.
The crypto space is wild haha.
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Hahaha bro I’m an OG in the crypto space, I know my shit lol
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I got work colleges who dabble in Stock options trading all year are now into Crypto. I was the only Crypto trader minding my own but I keep getting asked; "Should I be getting into Dogecoin, Shiba Inu, What do you think of Safemoon?" Seems like making a big score on a meme coin makes me a Crypto Guru? Haven't even time to even read the whitepaper yet.
Thanks for the Safemoon summary in a Nutshell.
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All that matters is not being the last one holding that SafeMoon bag.
Right?
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That will separate your Run-of-the-mill HODLers from the hard core HODLers of Safemoon when things go south.
After reading the posts here about Safemoon, I'm thinking that it makes Dogecoin look like Bitcoin. Dave Portnoy way want the last 4 months of his life back.
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When Dave Portnoy first bought SafeMoon he actually said that it was a Ponzi, "but at least you're getting in on the ground floor."
That was the top of the market so who knows, he was probably dumping on his followers while telling them to buy.
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At least he knew what he was getting into. If he had followers who made some money off SafeMoon, good for them. As with most things, some were left holding the bag (in the pre-crypto sense of the expression).
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It is a scam eventually the tokenomics just dry up to the point it collapses. What I really dislike is how many clones and scam artists are now using cloned copies of Safemoon
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Yep, the definition of a ponzi.
With no use case other than 'hodling while others continue to buy it', SafeMoon's collapse is inevitable.
What are some of the copycat projects you know of?
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Good write up. It I better one look very well before one leap.
Thanks for sharing this wonderful post
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Definitely do your own research before investing in anything.
Especially scam coins like SafeMoon.
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Missing from the title, is Safemoon a scam? YES YES IT IS.
I have also done a lot of research and with each thing I find out, it reminds me of the Herbalife groups that have the same system.
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I did get there in the end ;)
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Well i don't think its a scam. However like 99.9% of crypto projects its a bad project. So i think its a difference between scam and bad project. In their defense most crypto projects are bad and don't make any sense why people buy them. We know they only buy them for speculative purposes and not actual use cases.
So i wouldn't rank Safemoon anymore worse than most of the projects that exist around here. The problem is we have a string of deflation coins and deflation projects with no use cases lol. So they do these tokenomics of token burns but there is always but always no substance to them.
So why do people buy them? Same reason they buy most cryptos safemoon just cuts to the chase to appease their gambling addictions lol. So not a scam but a bad project like most. If you going to do a deflation project first of all we don't need a ton of tokens you and your owners can exploit people with especially if your product is already cloned technology and its not unique etc., Next have a use case you feel will be useful to the world and that people will use primarily because deflationary tokens are going to have a similar feel to pump and dump coins unless there is a real plan in the future for it. These ethereum based projects for the most part just don't have that. They been doing these ethereum contract games like that for years now. They appear every year same thing with a different marketing scheme lol. No just make a product thats going to actually be useful to people and that we will want to use.
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Scam project/bad project...
Tomato/Tomato...
You're right that a lot of SafeMoon's price rise has come purely on the back of speculation.
People want to buy SafeMoon so the price is going up and up.
There's nothing wrong with encouraging speculation and in a free market, this is going to happen.
But I stand by the statement that SafeMoon's pyramid scheme tokenomics are scammy.
Because they are.
Add in the fact that the founders have the opportunity to rug pull at any time due to that 50% of liquidity locked away, it's so much worse than just a bad project.
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Also there are no real projects in the Safemoon ecosystem. Maybe another reason it could indeed be a scam!
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SafeMoon have their own wallet... in beta lol.
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Great post, I follow safemoon on twitter for pure entertainment reasons, anytime they tweet it is a hoard of shillers trying to push their narrative of this coin for use cases/probability when all it is, is buy our coin we are safemoon. so much hype around nothing.
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Sounds pretty gross haha.
The other side of the crypto market, huh!
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I must admit that the name of the project made me feel it wasn’t safe, so I did investigate or invest in this project. Your article further supports my decision. I think there are safer placed to invest my Capitol.
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Like Hive and LEO? ;)
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any crypto currency that has no real utility is a scam
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While I do agree with the premise of this comment, speculators are always going to speculate.
It just needs to be made clear that this is all SafeMoon as going for it.
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Funny enough I almost got this shot coin then I remembered I need to bag some more shitty hive at list I know what I can use it for.
i am also a safemoon army still holding my bag.
this is what my account look like before
and compare to now
but still holding strong
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