There have been cases of scams in crypto projects, and this has made a lot of crypto enthusiasts who want to invest in projects like the Safemoon token be reluctant. There have been allegations about the Safemoon crypto project and one of the reasons behind this is that the Safemoon project team is sketchy, which means it is not thought to be credible. There are also some lawsuits against celebrities like Jake Paul and Soulja Boy who were accused of allegedly using their influence to convince fans to invest in a dead project.
Before talking about the Safemoon rug pull, it might be the case that you don’t actually know what a rug pull is; so here’s an explanation of what it is and how to avoid it.
What is a Rug Pull?
A Rug pull is a situation whereby the developers of a crypto project, abandon it with all the money that people invested in the project. Rug pulls are not a new thing in the crypto industry as it has been happening all over the years, causing a lot of investors to lose their money. Just like the situation of the suspected Safemoon rug pull, the developers of the project can slowly make away with the money that people invested in it.
To stop future occurrences, here are some of the things to look out for in a crypto project like Safemoon token before investing:
This is one of the mistakes that a lot of inexperienced crypto investors make. It is best practice and highly recommended that whenever a crypto project’s white paper is vague and doesn’t live up to expectations, you shouldn’t invest in the project.
Credibility of the Project Team:
While some projects use anonymity to prevent bias and raise interest, a lot of findings shows that an anonymous crypto project team will likely be a rug pull.
When there are few holders in crypto, there is more possibility that the project owners will likely rug pull. Fewer holders mean less community strength and it is not always worth investing in.
An Analysis of the Safemoon Rug Pull
SafeMoon token is a crypto project that started in 2021 and a lot of people have invested in the project with hopes of making profits from the project, but at this moment, it looks like a Safemoon rug pull has happened. The hype that the developers of the Safemoon project created, from YouTube ads, trends on social media platforms, and even going to the extent of securing a billboard at Times Square was indeed enticing. Of course, this helped them to create a fear of missing out atmosphere, and many investors invested in the project.
The hype concerning SafeMoon started to wear off, as the investors were expecting more from the project developers. The price of the SafeMoon token started to drop and that is when the signs of the SafeMoon rug pull started showing.
When the Chief Technology Officer of the SafeMoon project, Hank Wyatt, resigned, and sold all his SafeMoon tokens to anonymous investors, experienced crypto experts knew that there was going to be a rug pull. Jack Haines-Davies and other executives also stepped down and this led to a major dip in the coin and calls of a SafeMoon Rug pull. The SafeMoon token as a crypto project is highly risky and may not be worth investing in unless you still want to hope for a long term turnaround as some investors are doing.
The community of the SafeMoon token project is divided on whether the project is still alive or dead.
#scam moon goes to the bottom, I mean moon 😂
Biggest rugpull on #crypto!
— Crypto_king10 🐋 (@KingCryptoC) February 22, 2022
I have tremendous faith in #safemoon and the vision behind it.
Block by block, they continue to build. Against the FUD and naysayers, the team chugs along 🚂
With the #safemoonarmy behind its back, we’ll get that volume we always talk about.
— Safemoon Surgeon.sfm (@SafemoonSurgeon) February 26, 2022
These tweets show how divided people are on whether the project is dead or not. While others may not agree, SafeMoon is far from being a successful project for now.
Lawsuits And Other Allegations About the SafeMoon Rug Pull
There have been lawsuits against some celebrities such as Lil Yachty, Soulja Boy, and Jake Paul for promoting the SafeMoon token, which many consider a slow rug pull project.
A tweet from Jake Paul read;
— Jake Paul (@jakepaul) March 27, 2021
This made his 4 million followers on Twitter jump on SafeMoon which turned out to be a slow rug pull.
The people that filed this lawsuit per class action have alleged that the SafeMoon token was created to benefit the developers and not the investors as this token’s price has crashed greatly. It was these celebrities that were used by the developers to attract investors to the slow rug pull scheme, a project which is struggling to be stable as the price went down to $0.0000006521 on the last day of 2021 with only about a $60,000 trading volume.
Other investors who did not invest in this project have since made others who did miserably as one of them posted how the project developers are living their life while the investors suffer
Most of the worst rug pulls of crypto projects happened in 2021, because after the 2020 COVID-19 lockdown, a lot of inexperienced crypto investors entered the space. Crypto projects such as the Safemoon token is not straightforward, from the development team to the CEO who has shown questionable character traits. As the #SafeMoonarmy hope to see the best of the project, it will take responsibility, utility and a long term vision plan to get this project back if ever.