For those who follow the news in the world of cryptocurrencies , you are surely aware of the existence of SafeMoon, a virtual currency created around the beginning of March. What is surprising about this currency is that it seems to be a revolutionary currency, especially when you see all the publicity that there is around it, whether on social networks or in the newspapers. Stars have even put their hands in to promote it, including Jake Paul and Keemstar . But what is it that makes SafeMoon so popular right now?
The main reason why SafeMoon attracts so many people is that it promises large profits to its potential investors.
Its creators indicate that a Rube Goldberg-like programmable token mechanic and critical mass of social media-driven investments will be harnessed to increase the value of the cryptocurrency. From what is known, SafeMoon was created to discourage sales by implementing a 10% tax.
So when a person puts the cryptocurrency up for sale, 5% of the value will be distributed to existing owners, while the other 5% will be destroyed. This will decrease the volume of currency on the market and therefore increase its value.
Celebrities in action
It is a process already used by many crypto and called "yield farming". However, in the case of SafeMoon, a lot of money will have to be poured into the currency for there to be profit for each investor.
For some, this is an opportunity to make a profit, but others think it looks more like a complicated and risky plan that could well fall apart and shatter the dreams of many investors.
For the moment, SafeMoon is not yet on the list of currencies to trade on the major exchange platforms. It also produced an entirely speculative list of projects including expansion into the UK and Africa, or the release of an educational app. Despite this, SafeMoon, which is thus still a very high risk financial product, is supported by celebrities and influencers who encourage their followers to buy it. There is for example Daniel Keem, better known as Keemstar, who promotes cryptocurrency on his social media accounts.
Keemstar currently manages a Twitter account with over 2 million subscribers, as well as a YouTube channel followed by over 5 million people.
On April 19, Keemstar expressed his joy on Twitter when the value of SafeMoon increased. He urged his followers to invest, saying the value has skyrocketed and he is rich. This post got nearly 5,000 likes, and hundreds of people commented, asking what it takes to be able to invest.
Keemstar is not the only one to support SafeMoon as rapper Lil Yachty, who has 5.4 million followers on Twitter, has also promoted it. Jake Paul , the YouTuber turned boxer, is also one of the big fans of cryptocurrency with his 3.9 million subscribers. In addition, there are also articles written in recognized newspapers such as Newsweek, The Scotsman, or the Daily Express.
Where's the bone?
Even though everything looks fine for SafeMoon, it looks like not everything really works as expected for cryptocurrency.
For example, last April, the currency development team hosted an AMA on Twitch, but the team members didn't really seem on their plate. The developers spent their time congratulating themselves on the success of their cryptocurrency and were unable to answer investors' questions about the network outages or the shortcomings of the project.
The performance of the developers even had an effect on Keemstar who decided for a relatively short period of time to abandon the cryptocurrency. He said in a tweet that he didn't like the stream and wanted to ditch SafeMoon. A little later the same day, he still decided to come back but with a lower investment than he had initially planned.
Other people have criticized the system used by SafeMoon. Indeed, due to the fact that the value of the crypto depends on the investors who pour the money after oneself, it is reminiscent of incidents like what happened in 2018 with the Bitconnect Ponzi scheme which collapsed. Some investors even fear that the creators of the project will run away with a whole bunch of tokens. According to Colin Platt, cryptocurrency researcher and COO at Unifty, SafeMoon is harnessing a mechanic from the decentralized finance industry or DeFi to promote what is clearly a get-rich-quick scheme based on a bunch of codes. messy.
In any case, the adventure continues for SafeMoon and the stars who support it. Sooner or later we will see if it is really a way to get rich on a regular basis or rather a big scam that will make its investors lose money.
It will also be recalled that when investing in currencies, there is an important rule to respect: you should only invest what you are ready to lose.