SafeMoon (SAFEMOON) is one of the most hyped cryptocurrencies in the market today. Launched in March 2021, the “DeFi token” has since climbed and fallen down the market cap rankings. It became the 33rd biggest crypto by market capitalization on May 11, when it hit an all-time high of $0.00001094 (according to CoinGecko). Since then, it has slipped down to 52nd, with its price now standing at $0.00000417.
I’ve never been more confident in my decision to back #SAFEMOON I had no clue all this hate and jealousy in #crypto existed. But as Reggie Jackson once said “fans don’t boo nobodies”. If people are this frightened of the #SAFEMOONARMY that means I picked the right one
However, investors should treat SafeMoon with extreme caution. It remains a highly unproven altcoin with a number of glaring flaws. We list 10 ways it puts your money at risk.
1. SafeMoon doesn’t have any utility
It may be several months old now, but still no one really knows what it is supposed to do. Safemoon describe the coin on its website as a “DeFi token,” but this doesn’t tell us much. Its ‘whitepaper‘ is also laughably thin, describing only the coin’s internal economics and nothing else.
It therefore seems that SafeMoon has designed its coin only to rise in price, and to have no wider use. This is fine for as long as it does rise in price. But if it falls, and if other altcoins offer better gains, it may collapse in a hurry.
2. SafeMoon penalises you for selling
While SAFEMOON is designed to rise in price, it charges holders for cashing out. If you sell your SAFEMOON, the SafeMoon protocol takes 10%. Half of this 10% goes to existing token holders holders. The contract also uses a quarter of the fee to ‘sell into BNB,’ according to the brief whitepaper. Basically, the owners of the contract use your sold SAFEMOON to buy Binance coin (BNB). They then pair the remaining quarter with the newly acquired BNB, adding both as a liquidity pair on PancakeSwap.
Safemoon intends this 10% fee to deter selling and to help SAFEMOON rise in price. But it’s not clear what exactly happens to the 5% which goes towards BNB. Do the contract owners — i.e. Safemoon — keep all the proceeds from adding liquidity to PancakeSwap? If so, they’re arguably profiting at the expense of SAFEMOON traders.
3. The protocol has a ‘critically severe’ issue related to safeguarding fees
DeFi security firm HashEx recently published an audit into the SafeMoon smart contract. It makes for some grim reading. Most notably, HashEx discovered two issues of “critical severity.”
The first relates to a lack of “safeguards for fees,” with the contract controlling fees (paid during SAFEMOON sales) being owned by an external account. According to HashEx, this means that if the owner of the smart contract were a bad actor, they could easily drain it of its accumulated fees. In other words, the fees you pay for selling SAFEMOON will end up lining someone else’s pockets.
4. It has another critical issue related to ownership of its smart contract
HashEx identified another issue of critical severity. It found that the ownership of the SafeMoon smart contract can be temporarily renounced. This can create confusion among users, who may incorrectly think the contract has no owner. Ultimately, HashEx says it identifies “this behavior as fraudulent.”
5. SafeMoon’s contracts have a ton of other issues
In total, HashEx identified 12 issues affecting SafeMoon’s smart contracts. Two of these are of critical severity, as described above. Another two are of high severity, with four being of medium and another four being of low severity.
A slew of critical vulnerabilities has recently been identified by the DeFi security provider #HashEx when examining the #SafeMoon#DeFi project. The identified issues are so severe that users are being warned to stay away from the protocol for fear of losing their funds. $SFM
What’s worse is that many of these issues can be exploited at the same time, greatly increasing the risk for investors that something will go badly wrong with SafeMoon. Here’s what HashEx concluded in its report:
At the time of the audit, the owner of the token contract is set to an EOA account (externally owned account), which implies high risks for token holders as if the owner account is compromised an attacker can break the token functionality completely (for example, by blocking any transfer).
6. It runs on the Binance Smart Chain, which has had its own issues
SAFEMOON is a BEP-20 token, meaning it runs on Binance Smart Chain. In itself, there’s nothing really wrong with this. However, BSC has suffered a number of issues recently across several of its platforms.
On May 20, malicious actors exploited bugs in BSC’s PancakeBunny protocol, stealing some $45 million in BUNNY tokens.
Today, BUNNY tokens worth $1B+ were minted from Bunny Finance on BSC, resulting in $40M+ was stolen:
SafeMoon has extremely low liquidity. It’s such a small market that, if a big holder sells, its price is likely to fall steeply. For example, its price crashed by more than 80% in late April when a whale sold $8.5 million’s worth of it.
#SafeMoon is one of the most obvious Ponzi Schemes on the market.
The creator of this coin owns 95% of the supply. Today, he sold $8.5M (5%) and the price crashed 84%
Smaller holders will never be able to predict when a larger holder is going to sell. This arguably makes holding SAFEMOON tantamount to gambling.
8. SafeMoon is hard to buy and sell
SafeMoon isn’t really listed anywhere. Right now, the only place you can really trade it is on PancakeSwap, a decentralized exchange on Binance Smart Chain. Traders therefore need to go through a relatively involved process to get their hands on it. They need to create a Binance account, buy Binance coin (BNB), swap BNB for SAFEMOON, download a wallet such as MetaMask, and also enable such a wallet to work with BSC.
With major exchanges such as Coinbase and Kraken steering clear of SAFEMOON, traders have to work quite hard to acquire the coin. But with few outlets to buy and sell it, it further worsens its problems with low liquidity.
9. SafeMoon’s team appear reluctant to answer hard questions
Back in late April, some members of SafeMoon’s team participated in an Ask Me Anything (AMA) at the Miami Crypto Experience. The thing is, they didn’t really answer any relevant questions, instead choosing mostly to speak with guests about unrelated topics. This didn’t create a good impression, and the coin promptly fell shortly after.
Such an appearance arguably fits in with the lack of detail on SafeMoon’s website and in its so-called whitepaper. There seems to be an avoidance of accountability and transparency, something which could potentially ring alarm bells.
10. It is well below its all-time high
SafeMoon has fallen much further from its recent all-time high than major cryptos such as bitcoin, ethereum and Binance coin. It’s now down by just over 61% from its ATH, according to CoinGecko. By contrast, bitcoin, ethereum and BNB are down 42%, 38% and 44% from their respective ATHs.
When the coin falls, it falls hard. This should be another warning sign for investors. Because even if it appears to offer big short-term gains at the moment, it also offers big losses.
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Coinbase will provide the Immigrations and Customs Enforcement branch with blockchain analytics software.
The crypto exchange has also provided software to the U.S. Secret Service and Inland Revenue.
The Immigration and Customs Enforcement branch of the U.S. Homeland Security has given a $1.36 million contract to crypto exchange giant Coinbase for “business application” and “application development software”, according to the Federal Procurement Data System.
The new deal is Coinbase’s largest federal contract yet. The deal was signed on Thursday and is worth around forty times more than Coinbase’s last contract with the Homeland Security branch.
I missed this in procurement feed yesterday, but cryptocurrency exchange platform Coinbase has a new award with ICE which is either 15x or nearly 50x as large as its previous award, depending on how you count.
Back on August 9 this year, the ICE paid Coinbase $29,000 for forensics software. According to a document dated August 3, the contract was given to Coinbase on the basis that the company is “the only vendor who can reasonably provide the services required by the agency.”
Details as to exactly what the ICE wants Coinbase software for are scarce. The same document later states, “This requirement is LAW ENFORCEMENT SENITIVE[sic], therefore minimal information will be provided publicly.”
ICE is not the first government agency to request Coinbase’s services. Last year, Coinbase announced its desire to sell analytics tools to two U.S. government branches: the Drug Enforcement Agency and the Inland Revenue Service.
The IRS said that it could use several analytics tools to help catch blockchain-savvy tax dodgers, including “Coinbase Analytics”, formerly known as Neutrino. Coinbase acquired Neutrino back in 2019 for $13.5 million.
It was a controversial acquisition at the time since Neutrino members had been linked to an Italian organization called Hacking Team, which sold spyware to authoritarian regimes in Saudi Arabia, Sudan and Venezuela.
Solana may be up 122% in the past month, but its rise has begun to slow down. As the blockchain secures its place in the top 10 by market cap, investors in the nascent low fee, high-speed blockchain are turning their attention to something else: Solana’s decentralized finance protocols.
In the past week, investment in some Solana-based DeFi protocols came so thick and fast that the blockchain couldn’t handle all the attention. Solana crashed for 17 hours on Tuesday after bots rushed to invest in a token sale for Grape Protocol.
But what are these new projects, how much have they raised, and who’s funding them? We take a look: here’s our roundup of some of the biggest protocols that are capping off a heady and hot Solana Summer, and a glance at those yet to come.
First is Grape Protocol, the culprit of the outage, which despite all the upset raised only $600,000 during its public raise on Raydium’s “Acceleraytor”.
Grape Network hooks up to platforms like Discord, Telegram and (soon) Twitter to help decentralized communities coordinate over Solana and reward their members with cryptocurrencies. It’s all powered by the protocol’s token, GRAPE.
Next up is Parrot Protocol, which raised $69 million in an Initial DEX Offering from investors including Sino Global Capital, Alameda Research, and QTUM VC. Parrot’s a non-custodial lending platform and decentralized exchange—similar to the Maker protocol on Ethereum.
Parrot’s partly backed by PAI, an algorithmic stablecoin. In its IDO, however, Parrot sold a governance token called PRT. It’ll allow investors to vote on how the protocol is run and farm for yields on Solana without taking money out of yield farms on other Layer 1 blockchains.
Parrot’s IDO slowed to a halt due to Solana’s outage but all was wrapped up by September 16. In a “Letter from the Parrot” this morning, the team said it’ll commence work on PRT staking, NFTs and adjustable interest rates.
Many more projects are set to launch within the next few dayson Solana launchpads like Solanium, Boca Chica, and Solstarter. Today, the sale for whitelisted users for MatrixETF, a decentralized ETF platform, began on Solanium.
On September 16, a lending protocol called Larix launched on Solana. From September 15 through September 17, the total value locked in Larix rocketed from $1.7 million to $119 million. Solana, Huobi Global and Polygon are among investors.
Flippies, a sold-out NFT penguin collection, also launched on Solanium and will be distributed on September 21. Contrastive, a generative AI art series on the Solana blockchain is set to launch in two days.
With the breakneck speed at which Solana continues to grow, the network’s ability to sustain all these diverse projects will be a good way to determine their success.
A partnership between Maxim and xSigma has birthed a new non-fungible token (NFT) marketplace.
MaximNFT is a new platform launched from a partnership between xSigma and Maxim Magazine. The marketplace is said to grant exclusive access to Maxim’s NFT collections. xSigma, a blockchain R&D laboratory, is a subsidiary of ZK International (Nasdaq: ZKIN). The lab has been developing its own DeFi, NFT, and stablecoin based products. Meanwhile, Maxim magazine is celebrating 25 years in the business and is now available in 75 countries across the globe. The magazine is geared towards younger men and focuses on cars, fashion, lifestyle, and women. It is considered the “safe for work” version of magazines like Playboy. Previous cover models include Angelina Jolie, Christina Aguilera, and Megan Fox.
The goal of the NFT marketplace is to combine the clout that Maxim’s brand name has with the research and development capabilities of xSigma’s lab. The MaximNFT marketplace will give users the option to buy, sell and mint NFTs that utilize multiple blockchains including Ethereum, Polkadot, and the Binance Smart Chain.
Using the power of its 10 million monthly readers, MaximNFT is looking to attract a large base of creators and traders via print, social media, and digital publishing efforts. Behind the scenes, xSigma will be adding in features to include “NFT tokenization,” which will allow traders to sell fractional ownership of their NFTs. This will allow for these unique assets to be broken apart and shared with the cryptocurrency community in what the MaximNFT hopes will be a step to change the industry.
Maxim NFTs will focus on sports and pop culture
Maxim plans to focus its attention on “sports and celebrities’ collectibles, as well as gaming content.” So far, just one of these collaborations has been confirmed. In a post to Twitter on Sept. 2, MaximNFT announced it had teamed up with former NBA star Michael Beasley. In a post on Instagram, Beasley confirmed that his NFTs will be sold exclusively on MaximNFT starting in November. Unless something else happens first, they will become the first NFTs sold on the platform.
The press release also stated that the company is confident the rise of gaming and the incorporation of NFTs in the metaverse will continue to grow. MaximNFT also plans to combine the NFT’s minted with AR and VR technology.
The announcement states that MaximNFT will be going live in Q4 2021 with “a series of NFTs from celebrities, athletes, and brands.”
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Matthew De Saro is a journalist and media personality specializing in sports, gambling, and statistics. Before joining BeInCrypto, his work was featured on Fansided, Forbes, and OutKick. With a background in statistical analysis and a love of writing, he takes an outside-the-box approach to reporting news.