Analisdollarser warns investors of the dangers of investing their money in SafeMoon. Altcoin creators are declaring the cryptocurrency as a decentralized finance token that will skyrocket in price.
SafeMoon has been 1% since its launch in March. It increased by 320 percent. It also became very popular thanks to celebrities such as YouTuber Jake Paul and rapper Lil Yachty who talked about the token on their social media accounts.
But analisdollarser thinks SafeMoon could be a pump & dump scam that could hurt late investors. Pump and dump, buying a lot of coins in a group and raising the price; then it means disposing of these coins.
Susannah Streeter, a market analyst at investment firm Hargreaves Lansdown, said: “Influencers imposing their preferred coins on social media increase earnings. This model seems to be geared towards helping the original owners of the currency prosper, because other investors follow them and drive the price higher, ”he said.
SafeMoon caught the attention of investors after the rally of Dogecoin, the cryptocurrency that created millionaires overnight.
Warning from the expert about the altcoin project: “SafeMoon seems unlikely to reach the moon”
Edward Moya, senior market analyst for the Oanda currency platform, told Business Insider that “Dogecoin has greatly influenced the interest in SafeMoon, but received a warning against the new token.”
Many see this coin as a pump and a dump. The excitement for Safemoon started with claims that it would see a similar rise as Dogecoin. It seems like Safemoon is unlikely to reach the moon.
Regulators have long warned against investing in cryptocurrencies due to the volatile nature of this new asset class. Still, analisdollarser says investors should be more careful about investing in some cryptocurrencies.
Bitcoin (BTC), whose market capitalization currently exceeds $ 1 trillion, has become more common as institutional investors began to allocate some of their portfolios to BTC, but little is known about some altcoins whose price is rising.
While Bitcoin is considered a digital gold that can act as a hedge against inflation and powers the blockchain network on which Ethereum (ETH), non-exchangeable tokens (NFTs) and other applications are built, some altcoins seem to have no use cases.