The decentralized finance token (DeFi) SafeMoon (SAFEMOON) has skyrocketed 130% in the last 24 hours. In the accumulated of the last 7 days, the gains already exceed 1,120%.
The explosion in the price of the token, which at the time of writing is trading at US$0.00000749, has caught the attention of investors.
On Twitter, the hashtag “#SafeMoon” reached the most talked about subjects. However, cryptocurrency experts are warning that the project may not be legitimate.
Below you can see the video tweeted by the analyst Michaël van de Poppe:
Popular analyst Michaël van de Poppe, for example, used his Twitter account to claim that SafeMoon is not a good investment:
The recently launched SafeMoon protocol claims to reward token holders for holding them longer. At the same time, it penalizes those who choose to sell crypto quickly. More precisely, SafeMoon charges sellers a fee of 10% of the amount they decide to sell. The reward rate is 5% of the seller’s rate.
The DeFi protocol also said it is preparing to launch an exchange focused on NFT. To develop the project, the company claims to have raised US$700,000 from donors.
According to SafeMoon CEO Johnny Karony, the exchange would extend the concept behind SafeMoon to other cryptocurrencies as well. Currently, the SafeMoon token is available on WhiteBIT, BitMart (BMX), and on the decentralized exchange PancakeSwap (CAKE).
“Everyone knows how it will end”
However, crypto has been prompting alerts from traders and analysts. The trader known as “Venizo Crypto”, for example, told his almost 85,000 followers that the group that recently inflated the DOGE price by more than 200%, turned its attention to SafeMoon.
The purpose of the Discord group would be to boost the price of the token to sell later. The trader, known as Altcoin Sherpa also went to Twitter to make his considerations about the project:
“SAFEMOON: We all know how this is going to end. Do not buy. Technical analysis does not work well in these parabolic executions either,” he said.