The newly hyped Defi token SafeMoon has surged 12X in just a week, people who purchased it at its launch just weeks ago have now gotten a whopping 200X gain. ( Although, now it has started reversing its gains.)
Well-known Crypto Youtuber Lark Davis draws a Deja Vu to the new booming Crypto token SafeMoon to Bitconnect Ponzi that happened years ago.
Davis issued a cautionary tweet about the latest Binance Smart Chain project SafeMoon. He compared it to the now-defunct Bitconnect scam, claiming that the adrenalin of gains is blinding users to “the obvious”.
Bitconnect debuted in 2016, offering high returns for those who kept, traded, lent, or mined its BCC token. When Texas and North Carolina regulators released a cease and desist order in January 2018, things started to fall apart. Bitconnect has gone down in history as one of the biggest cryptocurrency scams.
Safemoon Just a Pyramid Scheme
With the grace of glowing coverage by the popular press, SafeMoon has garnered massive attention. But many prominent members of the crypto community are slamming it as a clear pyramid scheme.
Another Crypto Influencer along with Davis, raising concern is Dutch Crypto Youtuber Quinten Francois.
In his new YouTube video, He says, he is sure SafeMoon is a pyramid scheme. The rapid growth it is witnessing right now is very cryptic and there is great chance people could lose money. The analyst also claims to be one of the few people to warn against Bitconnect in 2016.
“I’m pretty convinced this is a pyramid scheme and that you will lose your money if you get in right now because this is a scam that is growing faster than everything I have ever seen before,”
SafeMoon is a new token launched in the first quarter of 2021, it is the native token of SafeMoon protocol, A Defi startup that aims at helping crypto bulls get to the moon, albeit in a safer manner. It claims to do this by including incentives for people who keep their tokens for a longer period of time. Those who sell face a penalty as well.