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.
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.