SafeMoon (CCC:SAFEMOON-USD) has seen a fall from grace in the last few days that has been almost as rapid as its rise. The altcoin, launched only weeks ago, is facing backlash from a Reddit Ask Me Anything that has users wondering if the SafeMoon crypto is a scam.
SafeMoon launched in Q1 as a moon-bound rocket in the shape of a decentralized finance startup. The coin’s claim to fame is its safety factor, rewarding users who hold onto their SafeMoon coins, rather than trading them away. In fact, the SafeMoon model punishes those who sell their tokens with a tax of sorts, which is then redistributed as a reward to SafeMoon holders.
The crypto saw a meteoric rise just weeks after launch, and has been doubling in price seemingly every day since launch. The unprecedented bull run is catching the attention of crypto traders everywhere, and until just days ago, it seemed poised to be the next Dogecoin (CCC:DOGE-USD).
A recent Reddit AMA is souring investors’ opinions on SafeMoon, however, and tanking the value of the coin. SafeMoon investors are turning their backs on the crypto as developers fail to answer user’s questions with substantive answers. The bad publicity is riding hot on the heels of rumors calling the crypto a scam.
Insiders Call SafeMoon Crypto a Scam in Wake of AMA
As SafeMoon acknowledged on its social media platforms, its latest AMA missed the mark. It seems users are getting fed up with the inclusion of unrelated content during AMA sessions. And now, insiders are warning investors against joining the SafeMoon community.
A crypto scam fighter on Twitter bearing the name WarOnRugs is campaigning hard against the token, which now has over 1 million users. They allege that the SafeMoon owner possesses over 50% of the coin’s total liquidity.
Other SafeMoon owners and insiders are coming out against the coin now as well. Crypto influencer Lark Davis is going so far as to call the crypto a Ponzi scheme via Twitter. He doubled down on the critique and hearkened back to Bitconnect, a famous crypto scam.
Another SafeMoon investor is reporting unfair practices by the crypto as well. They are saying that the punishment for selling the coin is severe and serves only to line to pockets of developers. In selling shares of SafeMoon, the user, as well as other SafeMoon sellers, are reporting losses of over 50% upon withdrawals of the coin.
Right now it is unclear whether the SafeMoon crypto is a scam. However, investors should know that the controversy is certainly bubbling on Wall Street.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article.