SafeMoon, a new DeFi token that rewards its holders with tax obtained from its sellers, has reached an $5 billion fully diluted market cap, down $3 billion in less than a day, only a month after its launch.
What Happened: According to the protocol’s whitepaper, SafeMoon charges sellers a fee of 10% of the amount that they choose to sell while rewarding those who still hold the cryptocurrency with 5% of the seller’s fee.
So far, SafeMoon has managed to acquire over a million users from across the world despite being listed on only a handful of exchanges.
Where To Buy SafeMoon: SafeMoon tokens are available on the exchanges BitMart, WhiteBIT, and decentralized exchange PancakeSwap.
In order to purchase SafeMoon tokens on PancakeSwap, users have to first download Binance and Trust Wallet.
The next step would be to buy Binance coin BNB from Binance and send it to their Trust Wallet to convert it to Binance Smart Chain.
After this, users would go to their browser on Trust Wallet, click PancakeSwap, and convert their BNB tokens to SafeMoon tokens.
Alternatively, users could buy directly with U.S dollars from exchanges like BitMart or WhiteBit.
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Risks and Rumours: Contrary to what the protocol’s name suggests, reports have emerged that it might not actually be the safest investment choice.
Remember just because you make money off of a ponzi does not change the fact that it is a ponzi. #safemoon
— Lark Davis (@TheCryptoLark) April 21, 2021
Lark Davis, a popular crypto influencer known as Crypto Lark, took to Twitter to warn new investors about the project.
“I have seen dozens of crypto schemes that are basically the same. It will not end well. Soon enough the money will stop flowing in and it will collapse,” he said.
A community called “War on Rugs” has also issued a scam advisory alert for the project on Twitter. According to them, the likeliness of losing funds is absolute, given the fact that the creators own more than 50% of the liquidity and refuses to fix it.
“He could pull LP and sell tokens, creating a rug pull,” said War on Rugs.
The fact you loose almost 50% of your money during withdrawals doesn’t sound right, it’s like taking back what I invested, was this the idea all along? Filling ur pockets and leaving us with crumbs?
— Oma (@PerfectAUS) April 21, 2021
Some users have also reported losing 50% of the value of their funds when making withdrawals.