Some early SafeMoon investors may already regret having bought the token. "You're simply reliant on someone further down the line being willing to pay more than you did to turn a profit, which is a risky bet indeed," Khalaf told the UK's Daily Express. Laith Khalaf, financial analyst at investment platform AJ Bell, likened SafeMoon to a pyramid scheme. Sadly, it appears the SafeMoon price depends on drawing more "believers" into the fold. One recent example from April 26: "We can see the moon, HOLD on it's about to get exciting." A rocket emoji and moon emoji were added for emphasis. They tend to be heavy on hype and light on substance. Indeed, the messages on the SafeMoon Twitter account raise some troubling questions. People get suckered into buying a stock at $0.10 a share because they envision getting rich when it hits $1 or $5.īut often these cheap stocks are part of "pump and dump" schemes where the folks promoting them cash out at the top, leaving later buyers with huge losses as the stock price, lacking fresh buyers, plummets. This is similar to what you see with a lot of cheap penny stocks of otherwise worthless companies. It sure looks like a great deal compared to Bitcoin, which is trading at about $55,000.Īnd people certainly are getting tempted. As I write this, SafeMoon is trading at $0.00000416. Oversupply tends to result in very low prices - which has the psychological effect of making a coin look cheap. CoinMarketCap reports the current circulating supply at 642.8 trillion. That's 47.6 million times bigger than the max supply of Bitcoin, which is 21 million. The maximum supply of SafeMoon is a stunning 1 quadrillion. The coin supply is another major red flag. Selling SafeMoon incurs a 10% penalty, which is designed to encourage investors to " HODL." That all sounds very noble, but there's little reason given for why developers should choose to use SafeMoon over the dozens of other crypto platforms available.Īnd the distinct features this coin does have don't make you want to buy. The coin's name implies a "safe" trip to the "moon" - in other words, big gains. It's relatively easy to create such tokens.Īnother problem is that SafeMoon does not appear to have a well-defined purpose other than " mooning." That's crypto slang for a soaring price. It's a BEP-20 token, which just means it's built on top of the Binance Smart Chain network (as ERC-20 tokens are built on the Ethereum network). It's risky to trust a brand-new coin unless it has the backing of well-known entities. SafeMoon is a very new project, having launched March 8. Why the SafeMoon Price Is Destined to Collapse Here's why investors should avoid SafeMoon. Opportunists are using those gains in legitimate coins as bait to tempt people who felt they missed out. Unfortunately, SafeMoon is part of a trend of new coins that have popped up in recent months in response to the dramatic spike in value of Bitcoin, Ethereum, and other top cryptocurrencies. In other words, my SafeMoon price prediction is that it will blow up and go to zero - and within a couple of years, will end up on the ever-growing heap of " deadcoins." The odds are very high that this overhyped crypto will not only fail to make you rich, but will wipe out any money you invest in it. And I'm here to tell you the bad news: SafeMoon is anything but safe.
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