Understanding the Safemoon Cryptocurrency: Worthwhile or Illegitimate Scam?
Evidence points to that SafeMoon could potentially be a Ponzi scheme because current holders gain by new money being pumped into the system. Legitimate or a scam?
Published June 9, 2021.
Barstool Sports' Dave Portnoy became the latest celebrity to hop on the cryptocurrency bandwagon. He purchased $40,000 in SafeMoon digital currency, sparking tremendous interest in the 24th-largest cryptocurrency on the market today.
With some buzz being generated for SafeMoon, it is worthwhile to determine if this crypto is legitimate or a scam.
Is There a Purpose to Safemoon?
It is true that nearly every new entrant in the crypto market that is trading for a fraction of a penny is risky. Many industry observers agree that SafeMoon is one of the riskiest ones. Why? For one thing, SafeMoon does not serve much of a purpose. In fact, there is no utility for SafeMoon.
What is the Difference Anyway?
SafeMoon also runs on the Binance Smart Chain, meaning that it functions within a centralized infrastructure. This means that the central authority determines the crypto's success. Whether this is a positive or negative thing can be debated, but this is different from the decentralized appeal of the leaders, like Bitcoin and Ethereum.
Evidence points to that SafeMoon could potentially be a Ponzi scheme because current holders gain when new money is pumped into the system. Any time the price spikes because of new entrants, the major investors hit the sell button.
In Conclusion: Legitimacy
Overall, its legitimacy can be discussed, but SafeMoon is not worthwhile crypto to park your hard-earned money in.
Suffice it to say, cryptos like dogecoin have paved the way for the thousands of other digital currencies that are nothing more than memes, even though dogecoin likely maintains better functionality than other joke coins.