Day 28 - Exposing A Scam Coin - BEWARE!


Thumbnail Source: https://www.gizmodo.com.au/2021/04/everything-you-need-to-know-about-safemoon-how-to-buy/

Introduction

Hello everyone and welcome to another post for Vendata's journey of the crypto world! Cryptocurrencies are great, each in its own unique and useful form. Investors love the variety, able to switch from one cryptocurrency to another seamlessly to provide great opportunities for profits. However, to the unfortunate greed of society, there are also scam coins. I have been going through my usual life when I have heard that there is a scam coin gaining popularity at a concerning rate: SafeMoon. I thought that I would make this post not only to raise awareness of this coin but also scam coins overall, making strategies you can do to ensure that the cryptocurrency you are getting is legitimate. Please note that the following information is not financial advice and I do not take any fault for any incidents which occur. Before making any decision, make sure that you DYOR (Do Your Own Research), my information liable to errors.

What Are Scam Coins?

So what are scam coins? They are quite self-explanatory, but in simple words, they are cryptocurrencies that are created in the hope to scam others. This can be done in many ways. With the main procedure, it goes along the lines of someone promoting a fake coin they made with deceitful evidence, people rushing into it with hopes of high profits, and thus pumping the price. Soon the cryptocurrency gains popularity, thus more buyer, accelerating the rise. This is similar to DOGE in nature but with one significant difference, the creator of the cryptocurrency owns an enormous amount of the cryptocurrency. What this means is that they can have a big cash-out with the cryptocurrency they made, taking so much of the supply that they make huge profits. 

For example, for simplistic sake, let's say you make a cryptocurrency called ScamCoin with a supply of 1 billion. You keep 700 million of these coins to yourself, hiding them from anyone's knowledge, and sell the other 300 million to others. Beginning at 1 cent, it booms to 1 dollar as more people use it and follow the pump trend. Now, that 700 million you held went from 7 million to 700 million dollars, so you can cash out now and make a huge profit. So you do, and guess what? The price dumps from a huge sellout, and so the coin becomes ruined, you leaving behind hundreds of millions in profits. Of course, I am not promoting scamming, and I hope you never do any scamming, but I want to give this example to help you out see how scam coins work and why people do them.

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The Scam Coin: SafeMoon

SafeMoon is apparently a decentralised finance (Defi) token with three functions used in each trade, which are Reflection, LP and Burn. It has boomed over the past week, over 700% in an increase of the time of this post, which is extraordinary! Though recently it has experienced some drops, and this brings up the concern I mentioned earlier about scam coins. SafeMoon may sound good, but do not be fooled by this trend: it is a scam. Why? I will show you!

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Why SafeMoon Is A Scam

There are so many reasons out there that support the claim that SafeMoon is a scam, but I will go through a few of the top and obvious ones which can also apply to other coins. 

The first one was the one I mentioned earlier: the massive drops. This is unnatural, DOGE not even having this issue. This is even more true when you find out that the owner owns more than 40% of the coin's supply. It is the same thing I mentioned earlier. Those drops are not anything. They would most likely be the owner cashing out some of his profits, making enormous amounts of money!

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Secondly is the project behind it, which is nothing. They promise a DeFi, an exchange, and so much more, but what has happened over the past month that it was released? Nothing! If SafeMoon was legitimate, some development would have occurred with public announcements, but clearly, there is none of that, making SafeMoon even more obvious as a scam coin. All there is on their website is their merch, white paper, team introduction, which is fake (I will go through later), and information on how to buy their coin, a suspicious procedure that you can look into through their website, but remember, beware!

Thirdly is the amount of inconsistency and fakeness there is behind the coin's media, which you will rarely see with other more reliable cryptocurrencies. Let's go through the team that I promised to go through later.

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Looking at the gallery of these, team members, they look convincing with plausible names, appealing pictures, and locations of most of them. They also have social media accounts, suggesting that they are even more real. However, these accounts are suspicious. First of all, one of them ("Henry (Hank) Wyatt" Twitter account) has the logo of SAFEMoon, which you would not expect to be someone's social media account about themselves. Next is even more suspicious: the content they share. This applies to both of the people that have a Twitter account linked to them ("Henry (Hank) Wyatt" and "John (Capt Hodl) Karony") with all the content I checked relating to SafeMoon, nothing about their life and so forth. They may also be suspicious with their other social media accounts, but I did not check, though it is most likely the same case.

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Also, if you go onto their medium page, it comes up with this:

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Suspicious or not?

Thus SafeMoon is a scam!

Conclusion

That ends this post! I hope you found the information helpful and useful, perhaps withdrawing from SafeMoon (not financial advice!), which is based on my evidence a scam. Please note that SafeMoon is not the only scam coin out there in the crypto world. There are many others, each with their horrible aim to steal other people's money in huge amounts, and this has happened many times before. One big example I can think of now is Bitconnect, which you can search up and investigate to become more aware of scam coins. Scam coins are a huge issue with the crypto world, and I hope you are more alert about them, becoming more skilful in the crypto world!

Exposing a scam coin, I become more aware of the great potential of scams in the crypto world, developing as a smarter, and more informed crypto person.

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Vendata
Vendata

I have just started getting into crypto and want to help others in the journey as I progress. I will give my advice, thoughts and opinions relating to different concepts of the best of my ability. No content promises to be 100% true and is for education.


Vendata's journey of the crypto world
Vendata's journey of the crypto world

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