INTRODUCTION.
WHAT IS SAFEMOON CRYPTO:
Safemoon is an altcoin scheme as well as a BEP 20 token that exists on the Binance Smart Chain too, which was launched on 8 March, 2021. In all sincerity, Safemoon seems to follow the same approach to cryptocurrency which tends to value investors such as Warren Buffet and Charlie Munger, and that is to simply buy and hold philosophy. Notably, Safemoon has attracted public attention with a price that has jumped to several thousands of percent within just a few months of its establishment, and it also has a peculiar take on rewarding investors.
The most important issue at stake here is for us to ascertain with cogent reasons as to whether Safemoon is a genuine business or indeed a scam like many others of its kind. Without any doubt, everybody knows that cryptocurrency is a risky investment which can create fortunes for you in much the same way as it can also crash and burn down unexpectedly overnight, thereby subjecting you to equally very unimaginable loses too. So, you ought to really tread with utmost caution here. Due to the threat of these possible and unexpected loses, investors are strongly advised to invest only that amount of money which they can lose, but never any amount that can have adverse effects on them. Even at that, you are still advised to conduct a thorough research on any broker before you invest your hard earned money with them.
SAFEMOON REWARDS.
The company claims to solve problems of yield farming whose reward amount is conditional on the trade volume of the token. In addition, there is a reduction in the selling pressure of the token which is usually caused by early adopters selling tokens after farming the surprisingly high APYs. Furthermore, the mechanism is rather an incentive for all users to continue holding their tokens, thereby collecting an even bigger number of tokens, in pretty much the same way that dividends work for stock holders.
THE SAFEMOON FUNCTIONS.
MANUAL BURNS.
Manual Burns, which is one of the three functions introduced by Safemoon, uses a number of protocols which may sometimes succeed, but certainly not always. Expectedly, continuous automated burns may have positive results earlier on, but this gain is likely to lose momentum eventually, since it cannot be used to control or even maximize its impact. Automated liquidity pool(ALP) is definitely the closest secret of Safemoon, and what are the benefits of ALP to the company or its investors, if any?
BENEFITS OF ALP.
First and most importantly, ALP attracts tokens from prospective buyers and sellers which it adds to LP(liquidity pool), thus creating a kind of flow for prices.
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Second, the 10 percent tax on all Safemoon sales acts as an arbitrage resistant mechanism which maintains Safemoon as a reward for holders, and not only a speculative tool.
IS SAFEMOON A GENUINE BUSINESS OR A SCAM?
In all sincerity, from the points analyzed so far, Safemoon can be seen as a sort of ponzi scheme because, for instance, its profits are made on what others are buying. In addition, the distribution of the selling fee definitely looks like the pyramid commonly associated with ponzi schemes. Also, securities regulatory authorities have given out warnings regarding the risks investors may suffer if they deal with the company. Is it not curious that the founders of the company are locking away more than fifty percent of its own liquidity pool, which could invariably be a kind of rug pool by the developers.
The founder of the company and its Chief Executive Officer, CEO, John Karony, claims that the liquidity is only being held in order to keep the token more secure, but you ought to know better, don't you? In addition, though John Karony was a former analyst for the US Department of Defense and also the former founder of TANO, a game streaming platform, he has no record, background or experience in either blockchain or finance. This further makes investment with the company a lot more risky than should ordinarily have been the case. After all, you would surely prefer an experienced captain sailing the ship, wouldn't you?
HOW DOES SAFEMOON WORKS?
The company was primarily created, according to statements on its website, to address the issue of permanent loss, and this objective has surprisingly promoted the buying and holding of its token rather than speculating it to drive up the price. In order to combat or overcome any loses, Safemoon has devised three simple functions, which are: Static Reward or reflection, Manual Token Burns, and Automatic Liquidity Pools. Now, before we take any stand on the matter at hand, let us consider the following facts to enable us decide more effectively:
(1). It is worthy of note that the company has no known background in Block chain or finance. This is a clear indication of the likelihood for your investments to be at serious risks and thus very vulnerable too. With Safemoon, small contracts can allow for setting the commissions for the transfer of Safemoon up to about 100 percent in one fell swoop.
(2). In addition, Safemoon is also known to virtually exclude holders from commission distributions, as against standard practice worldwide. This is certainly a red flag which you will only neglect to your own detriment.
(3). Safemoon is also known to temporarily block token transfers, which is another strategy that should call for caution and more in-depth reflection too.
(4). Finally, Safemoon is rendering smart contracts permanently inoperable. If this does not make you suspicious, nothing could possibly do so in actual fact.
In conclusion therefore, Safemoon should be seen and treated as a legit, and if you should listen to the voice of reason, you will do yourself well not to invest your money or deal with them. After all, you have more reasons to be wary of the company than you do have to entrust them with your money. So, watch it.
SHOULD I BUY SAFEMOON
HOW DO YOU PROTECT YOURSELF FROM ONLINE SCAMS?
Despite the many and persistent warnings on how to identify and avoid online eCommerce scam sites, many still curiously fall prey to these scroungers daily. Luckily, if you care to listen, there are ways through which you can reduce the risks if you eventually fall victim. For one, your method of payment determines exactly what would happen in case you get defrauded. Always make sure that you pay or invest money through either your bank accounts or PayPal, but never by using your credit cards. This is basically because, if you make any payments via your credit card, there is the possible risk of these scammers to use your stolen credit card details to further defraud and steal from you by cloning the card details. Furthermore, in most instances, you may want to launch what is generally known as chargerback options in order to recover your stolen money.
The chargerback option is an arrangement between you and any appropriate company that will ensure the recovery of your money for a fee. It becomes pretty much very difficult, if not downright impossible to do so, if you pay through your credit instead of your bank account. Furthermore, there is the need for everybody to be less greedy and much more cautious in what they do. For example, if you are out to make unimaginable gains after investing by doing nothing else, chances are very high that you can get easily dupped by these criminal elements. In most cases, they use your greed against you. Commonly, they will promise a lot of profit in hundreds of percents if you invest, and thinking of what you stand to gain may prompt or tempt you to invest without any second thought. If it sounds too good to be real, it very possibly is. Essentially therefore, do not fall for their lies of making enormous gain with little or no effort.
Certainly, Forex trading does not and had never operated that way. If it sounds too good, you will do well to run away. You are also very likely to observe that such fraudulent companies generate more questions than answers. For example, many things surrounding them may be shrouded in mystery and suspicion. In most cases, they are hardly ever regulated or known by most regulatory agencies, and so, if you get entrapped, you have nobody to refer to. After all, they are anonymous and in the wind. Again, they may not have a known physical address, and in other situations where they do, the addresses may be phony. There is also the tendency for their addresses to vary from one page of their websites to another. If all these do not make you suspicious, then nothing else can. Finally, their founders or chief executives maybe unknown, or where they are known figures, they may have a history of crime and insincerity trailing them.
CONCLUSION
Safemoon is, for all intents and purposes not a fraud judging from the many indices at our disposal for detecting falsehood. However, if you still wish to give them a try, you will do well to subject them to a thorough and in depth research before you do anything. After all, what does it take to find out a out anybody on Google or through trusted persons. Never forget that, if Google does not know anything about someone or something, it probably doesn't exist. Mull over this for once.