Those who follow the news in the world of cryptocurrencies probably know about the existence of SafeMoon, a virtual currency that was created around the beginning of March. What’s amazing about this currency is that it seems like a revolutionary currency, especially when you see all the ads that exist around it, whether on social media or in newspapers. Stars even got their hands dirty to promote it, including Jake Paul and Kemstar. But what makes SafeMoon so popular right now?
The main reason SafeMoon attracts so many people is because it promises big returns to its potential investors.
Its creators point out that Ruby Goldberg-like programmable token mechanics and a critical mass of investment in social media will be used to add value to the cryptocurrency. As far as we know, SafeMoon was created to discourage sales by imposing a 10% tax.
Therefore, when a person puts up a cryptocurrency for sale, 5% of the value will be distributed among the existing owners, and the remaining 5% will be destroyed. This will reduce the volume of the currency in the market and therefore increase its value.
Celebrities in action
This process is already used by many cryptocurrencies and is called “growing crops”. However, in the case of SafeMoon, it will be necessary to invest a lot of money in currency for every investor to make a profit.
For some, this is an opportunity to make a profit, but others think it looks more like a complex and risky plan that could very well fall apart and shatter the dreams of many investors.
At the moment SafeMoon is not yet listed on the list of currencies for trading on major exchange platforms. He also prepared a fully speculative list of projects, including expansion to the UK and Africa or the release of an educational supplement. Despite this, SafeMoon, which is thus still a financial product very high risk, is backed by celebrities and influencers who encourage their followers to buy it. For example, Daniel Kim, better known as Keemstar, promotes cryptocurrency on his social media accounts.
Keemstar currently operates a Twitter account with over 2 million subscribers, as well as a YouTube channel with over 5 million subscribers.
On April 19, Keemstar expressed his delight on Twitter that SafeMoon’s value has surged. He encouraged his followers to invest, stating that their value had skyrocketed and he was rich. This post received about 5,000 likes and hundreds of people commented, asking what needs to be done to be able to invest.
Keemstar isn’t the only one supporting SafeMoon: he was promoted by rapper Lil Yachty, who has 5.4 million Twitter followers. Jake Paul, a YouTube-turned-boxer, is also one of the big fans of cryptocurrency with his 3.9 million followers. In addition, there are articles written in well-known newspapers such as Newsweek, The Scotsman, or the Daily Express.
Where is the bone?
Even though everything looks fine with SafeMoon, it looks like not everything is working as expected for cryptocurrency.
For example, last April, the currency development team ran an AMA on Twitch, but the team members weren’t too worried. The developers spent their time congratulating themselves on the success of their cryptocurrency and were unable to answer investors’ questions about network outages or project flaws.
The productivity of the developers even influenced Keemstar, which decided to ditch the cryptocurrency for a relatively short period of time. He said in a tweet that he doesn’t like the stream and wants to ditch SafeMoon. Later that day, he decided to return, but with less investment than he had originally planned.
Other people criticized the system used by SafeMoon. Indeed, due to the fact that the value of the cryptocurrency depends on investors pouring money on themselves, this is reminiscent of incidents like the one that happened in 2018 with the Bitconnect Ponzi scheme, which collapsed. Some investors even fear that the creators of the project will flee with a whole bunch of tokens. According to Colin Platt, cryptocurrency researcher and chief operating officer of Unifty, SafeMoon is using the decentralized financial industry mechanism, or DeFi, to promote what is clearly a get-rich-quick scheme based on a bunch of codes.
Either way, the adventures of SafeMoon and the stars that support it continue. Sooner or later we will see if this is really a way to get rich on a regular basis, or rather a big scam that makes investors lose money.
It should also be reminded that there is an important rule to follow when investing in currencies: you should only invest what you are willing to lose.