Widespread crypto YouTuber Lark Davies tweeted a warning over the brand new Binance Good Chain mission SafeMoon. He likened its rising recognition to the now-defunct Bitconnect rip-off, saying the euphoria of positive aspects is blinding customers to “the apparent.”
Bitconnect arrived on the scene in 2016, promising excessive returns for holding, buying and selling, lending, and mining its BCC token. However issues started unraveling in January 2018 when Texas and North Carolina regulators issued a stop and desist order. Bitconnect has earned a spot in historical past as one in all cryptocurrency’s largest scams. However, is Davies proper to lump SafeMoon in with the identical firm?
Bitconnect was for a quick second a prime 10 #crypto, the folks creating wealth didn’t wish to settle for it was a ponzi, they made each excuse to justify it, and attacked anybody who acknowledged the apparent.
Then it rug pulled and everybody misplaced massive time. #safemoon is not any completely different.
— Lark Davis (@TheCryptoLark) April 21, 2021
SafeMoon launched final month on March 14 with a debut value of $0.00000008. Since then, notably over the past week or so, its value has mooned. SafeMoon is up +980% over the past seven days, hitting an all-time excessive of $0.00000919 yesterday.
Supply: SAFEMOONUSD on CoinGecko.com
SafeMoon is an auto-generating liquidity protocol that rewards holders and penalizes sellers. It imposes a ten% penalty on sellers and redistributes 5% to current holders, whereas it’s unclear who immediately advantages from the opposite remaining 5%.
“5% payment is cut up 50/50 half of which is offered by the contract into BNB, whereas the opposite half of the SAFEMOON tokens are paired mechanically with the beforehand talked about BNB and added as a liquidity pair on Pancake Swap.”
The mission describes itself as a “group pushed, honest launched DeFi Token.” It talks about three easy features, these being Reflection, LP Acquisition, and Burn.
Its whitepaper says “Reflection” pertains to the idea of static rewards, which they are saying tackles the issue of falling APYs and encourages customers to carry on to their tokens.
“LP Acquisition” pertains to their mechanism of matching consumers and sellers, which they are saying creates a “stable value ground,” due to this fact minimizing value dips.
Because the time period suggests, ” Burn” pertains to the burning of tokens, however in a documented and clear approach. The speculation right here is to cut back provide and due to this fact enhance the worth of tokens.
Some level out that the setup is much like a Ponzi scheme. SafeMoon’s success depends upon increasingly folks shopping for in and holding – a mannequin it encourages by penalizing sellers.
Nonetheless, some have praised SafeMoon CEO John Karony for his willingness to carry AMAs and have interaction with the group.
Binance Good Chain Rug Pulls
Binance Good Chain (BSC) is gaining floor as a critical competitor to DeFi on Ethereum. The promise of low cost gasoline charges and faster transactions appeals to customers. However its rise in prominence has been marred by a number of rug pulls since its inception.
Folks count on rug pulls to occur on Ethereum as a result of its decentralized standing. However as a result of anybody can launch a token on BSC, the identical drawback stays.
The most important BSC rug pull thus far was MeerKat Finance, wherein $14 million BUSD and 73.6k BNB, totaling roughly $30 million, went lacking in early March. The mission claims it misplaced the funds by means of a hack.