bitcoinBTC/USD
$ 20,384.00
ethereumETH/USD
$ 1,148.31
tetherUSDT/USD
$ 0.999362
cardanoADA/USD
$ 0.458734
xrpXRP/USD
$ 0.326662
usd-coinUSDC/USD
$ 1.00

Is SafeMoon a Scam? – A Brief Evaluation

Before investing in any cryptocurrency, token, or crypto-related project, you should first do some basic research regarding it. Since the crypto market is mostly decentralized, there is no authority above you, meaning that your crypto assets are your own responsibility. Moreover, most crypto investors don’t understand how cryptocurrencies work. Taking those things into consideration, the cryptocurrency industry is the perfect platform for scammers. These scammers mostly target the uninformed, beginner-level investors that are trying to get rich quickly.

So, Why SafeMoon?

This was thought to be the case with SafeMoon, a token with a huge supply, no real usage, and a sketchy team behind it. However, SafeMoon has yet to scam someone. On the contrary, those who onboarded the SafeMoon ship during the time it first launched have yet to lose their initial investment. The first days of SafeMoon were quite controversial, however, with its team being anonymous and most of its supply being allocated to them, SafeMoon was considered to be a rug-pull.

These allegations caught the attention of the team of SafeMoon, which decided to answer them in the best way possible – by burning all of their SafeMoon tokens. This burn was huge, amounting up to more than 300 trillion tokens burned. Simply put, the core team of SafeMoon proved the token’s credibility by burning most of their holdings. 

What is a Rug-Pull?

In the crypto space, a rug-pull is a maneuver that can be pulled off from the cryptocurrency developers by abandoning their project and running away with the investors’ money. This is most likely to happen when a high percentage of tokens are distributed to a very small group of people – most likely the founders. This has happened quite often during this year, causing people to lose a lot of money.

Is SafeMoon a Scam? - A Brief Evaluation
Price Chart of a Rug-Pull. Source: MoonRadar

How to Spot a Rug-Pull?

Spotting a Rug-Pull is very easy, all you have to do is some basic research around that particular token. Always check these factors when doing research on a suspicious token:

  • Team Credibility – rug-pulls are known for having an anonymous team with low credibility.
  • Vague White Paper – tokens that are built for scamming people often have a white paper that does not serve its purpose by being unclear and not understandable.
  • Unrealistic Expectations – no one can know how well their token will perform so whenever you are promised extreme profit for investing in a token… think twice.
  • Few Holders – projects that have a few holders that own a big amount of tokens are very likely to be rug-pulls.

Conclusion: Is SafeMoon a Scam?

After considering all the factors of identifying a crypto scam, we came up to the conclusion that SafeMoon is not a scam. Despite its high supply and low liquidity at the moment, SafeMoon is continuously proving its credibility. First came the huge token burn executed by the founders of SafeMoon. Then came the announcements for their wallet, exchange, hardware wallet, and the migration to their own SafeMoon blockchain. With serious projects and a transparent team, SafeMoon is proving itself as a project with high potential.

Also Read: SafeMoon Price Prediction 2021 and Beyond – Is SAFEMOON a Good Investment?

Takeaways

  • The crypto space is decentralized, making it a perfect place for scammers.
  • Because scammers are constantly searching for vulnerable naive investors, you should be cautious all the time.
  • SafeMoon was thought to be a scam in the beginning. However, it proved itself as quite the project as time passed by.
  • A Rug-Pull happens when the crypto project developers run away with the money obtained from investors.
  • Rug-pulls happened very frequently throughout 2021. This is mainly because of the huge number of inexperienced investors joining the cryptocurrency space.

Also read:

Related News

How to Buy SafeMoon in Europe - A Detailed Guide

How to Buy SafeMoon in Europe – A Detailed Guide

There are a lot of controversial ideas and comments regarding cryptocurrencies. Many influencers and investors like Warren Buffet have made numerous negative statements in the past regarding the credibility of this market, calling it a scam and a fraud. These comments inflicted fear upon the masses and this caused the market to be denied by many. However, everything started to change as they got more and more attention. In addition,

Read More »
How to Buy SafeMoon in the United States - A Detailed Guide

How to Buy SafeMoon in the United States – A Detailed Guide

Most cryptocurrency enthusiasts are expecting another bull run during the fourth quarter of 2021. These claims have hyped up people everywhere and even more, people are joining the cryptocurrency space in order to not miss out. SafeMoon is one of the most anticipated projects out there. Considering the latest product releases from the SafeMoon team – including the SafeMoon Wallet and Swap – all the hype around is no surprise.

Read More »
How to Buy SafeMoon in Asia - A Detailed Guide

How to Buy SafeMoon in Asia – A Detailed Guide

This year has been crazy for the whole cryptocurrency market which experienced one of the biggest bull runs ever, and we are just entering the fourth quarter of 2021. As we move towards the end of the year, the market is expected to experience another bull run – one biggest than the previous.  The previous bull run was quite interesting, with thousands of new cryptocurrencies and tokens emerging from the

Read More »

My Coins

bitcoinBitcoin
$ 20,384.001.18%
ethereumEthereum
$ 1,148.310.47%
cardanoCardano
$ 0.4587341.77%
tetherTether
$ 0.9993620.14%

Newest Videos on YouTube

We inform and educate people about Cryptocurrencies and Blockchain technology.

© Copyright 2021, All Rights Reserved,
Crypto Academy

Bitcoin

Contact Us

For any question conatct us through:

sales@crypto-academy.org

Disclaimer: All information and materials on this website are for educational purposes only. Crypto-academy.org does not provide any form of financial advice. Cryptocurrencies are highly volatile, therefore any form of investing carries a high level of risk to your capital. It is recommended that you seek professional advice prior to implementing any investment or financial plan.

We do not ask you for your Cryptocurrency / We do not hold your Coins / We do not ask for Private Keys / Be aware of scammers and imposters.

Contact us only through: sales@crypto-academy.org