The safemoon blockchain project has come under intense security recently after an expose of the project by a YouTuber known as CoffeeZilla or the Internet Detective. In the 39 minute video, CoffeeZilla exposes Safemoon as a scam project from the very beginning whose main objective was to con investors.
Some of the claims made in the video include the fact that the Safemoon project does not have any locked liquidity pools as it has claimed in the past. The video also claims that Safemoon’s CEO, John Karony, has withdrawn millions from the blockchain.
There are numerous allegations in the video which say that the entire project was put together in a rush, given that it copied most of its code from the Bee Token, a well-known rug pull. The points raised by CoffeeZilla are pretty alarming if they are proven true since it means investors could lose millions of dollars.
As an investor, I would be extremely cautious about investing in a project being investigated by the Federal Bureau of Investigation (FBI).
Safemoon is one of those few assets with a cult-like following similar to Tesla’s. No matter how many times investors have argued that the EV manufacturer is not worth more than Toyota, BMW and the Volkswagen Group investors continue to double down on the stock. The three legacy car manufacturers have been in business for decades and sell millions of cars each year, Tesla is missing this proven track record.
However, this argument has not stopped Tesla investors from buying its shares, making Elon Musk the richest man in the world. The same is true for Safemoon, which has a cult following dubbed the #Safemoonarmy, who have sworn to defend the project with all their might.
Some of Safemoon’s proponents are willing to take on their detractors in physical fights to defend the project, at least according to twitter, which they claim is being slandered by malicious people.
As shown in the tweet below, some investors have come out to defend Safemoon CEO John Karony, but one has to question their motivations.
Lawsuit against @coffeebreak_YT? Or no.
— Rumoni (@UsuryUsury) April 23, 2022
The YouTube expose cast significant doubt on the Safemoon project; hence, I would not buy Safemoon now. However, I would also sell my holdings if I had any simply because there are better projects out there.
While the Safemoon price has not moved much since the expose was released on April 18, 2022, I believe that the SFM price will crash once there is some actual evidence of the project's fraud, hence, why I am staying away from SFM.
*This is not investment advice. Always do your due diligence before making investment decisions.
The Safemon crypto price.
Safemoon crypto has been trading above the 0.00612 support level for a while now, but it is likely to break below it.
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Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading