The new cryptocurrency, SafeMoon (SAFEMOON token), is facing some serious allegations from the highly volatile cryptocurrency market. The SafeMoon Protocol cryptocurrency is known as the decentralized finance with three functions such as reflection, LP Acquisition, and burn. The SAFEMOON Token founders have allegedly lied about the liquidity pool of this cryptocurrency. The cryptocurrency market is concerned about whether the SafeMoon cryptocurrency is yet another Ponzi scheme or a legitimate project to drive profits for crypto investors.
SafeMoon is known as one of the fastest-growing altcoins launched on March 8, 2021, as a BEP20 token. The SAFEMOON Token exists on the Binance Smart Chain to reduce transaction fees for promoting trading. It was stated that this cryptocurrency does not need a liquidity pool once the blockchain comes in the future. Meanwhile, crypto investors experienced a nearly 3,000% price increase in the cryptocurrency market. It has motivated crypto investors to invest to drive sufficient profit in crypto wallets.
A liquidity pool is known as the funds of different people combined into a single inventory for providing the cryptocurrency market with quick and convenient liquidity for trading cryptocurrencies like SAFEMOON Token. There are multiple elements to enable liquidity pools to function such as liquidity providers, a pool of funds, a smart contract, as well as incentivization for crypto investors. But there are some risks to a liquidity pool such as an impermanent loss, risks of a smart contract, slippage, and many more.
The Founders of SafeMoon cryptocurrency set a goal to burn all SAFEMOON Tokens in crypto wallets. They launched one quadrillion SAFEMOON Tokens, out of that only 223 trillion were burnt before the official launch in the cryptocurrency market. SafeMoon is in its inclusion of an automatic liquidity pool in the cryptocurrency protocol. Crypto investors are unsure when the CEO of SafeMoon, John Karony, has mentioned that the liquidity pool will be used for emergency purposes only in the cryptocurrency market.
Crypto investors are looking out for new issues regarding the altcoin with the liquidity pool and the cryptocurrency price. Even if there is a burning strategy, the cryptocurrency to drive profit in crypto wallets is not reaching the price level. The burning strategy should increase the price steadily because the supply will be less and demand should be more from crypto investors. There is another rising issue about the liquidity pool — SAFEMOON Token has attracted multiple followers on social media accounts, but the price is still stagnant. The price has fallen almost 50% post-accusation of the fraud.
That being said, it still remains confused in the cryptocurrency market, if it is a fraud or an honest altcoin to drive profit for crypto investors.
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