Safemoon and Shiba Inu, Opportunities or Scam Projects?

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Last Updated on 12 May 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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For those of us who’ve been around crypto and coins for a while, we know that the bull run of 2017 and 2018 was marked for its many coins that went up alongside Bitcoin, and just as many coins that dissolved into nothingness as Bitcoin came crashing down.

These scam projects or sh*tcoins as some call them are what gives crypto a bad reputation, but it seems to be part of the industry just as much as new technology is. So with all the hype surrounding Bitcoin and Ether, we have to take into account that several smaller coins will also rise along, urging investors to join in before they do a rug pull, or where the founder all of a sudden sells a big part of all available coins and crashes the prices.

As we look at two of these which have been making headlines around social media for a few weeks now, we wonder, are Safemoon and Shiba Inu opportunities or just scam projects?

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Safemoon pyramid?

Safemoon, which is heavily backed by social media celebrities, claims it aims to reward people that buy and HOLD, however those that dare to sell are hit with a penalty and charged a hefty fee worth 10% of the amount of the cryptocurrency.

Laith Khalaf, financial analyst at AJ Bell, stated that:

You’re simply reliant on someone further down the line being willing to pay more than you did to turn a profit, which is a risky bet indeed.

Susannah Streeter, markets analyst at Hargreaves Lansdown agreed with this, stating:

Much of the demand for SafeMoon has come from traders hoping to benefit from future price rises rather than using the coins or tokens as a means of exchange. Predicting the point at which demand subsides and prices begin to fall is very difficult, if not impossible, and people risk getting their fingers seriously burnt.

In any case, always do your own research and be sure to check the guys from War On Rugs, the Twitter account that has officially declared war on rug pulls.

They are the community based, grassroots movement against rug pulls and scammers in the cryptosphere and not Safemoon’s biggest fans either.

Is Shiba Inu a scam?

As we stated yesterday in our market overview already, the meteoric rise of Shiba Inu has many people wondering whether a crash is imminent. As Binance announced earlier this week, the top #1, #2 and #5 wallets hold 50.5%, 7.0% and 3.0% of total supply respectively, which in normal cases would be extremely worrying, but in this case it is an even stranger story.

The developers over at Shiba Inu sent 50% of their tokens to Ether founder Vitalik Buterin at the onset, and as War On Rugs stated at the beginning of the year (before the coin started rising):

To be perfectly clear, Vitalik can rug you. Will he do it? Certainly not. There’s no incentive for him to tarnish his reputation for 200 ETH.

So on Shiba Inu the jury is at this point still out, although we must warn that the Wolf Of Wall Street was seen pumping it already we week ago.

Binance also listed SHIB in their Inovation Zone, making it possible to buy Shiba Inu using their exchange (which can be done after filling in a questionnaire). Safemoon, however, has currently over 1.9 million users, but Binance refuses to list it. Even though, the CEO Changpeng Zhao said earlier that when a project has a large number of users, they will list it. So, Binance not listing Safemoon can be a sign.