Security Concerns Of SafeMoon Could Halt The Growth Of Asset: Here Is Why

In the past couple of months, the attention of the crypto community has been drawn to SafeMoon based on many factors, which include a reward proposition for every long-term holder.

The token was designed by the founders to penalize anyone who sells a 10% tax, 5% of which will be redistributed among the investors that are holding the token, and the remaining 5% will be burned.

The token emerged in March 2021 and has the support of different celebrity figures like Jake Paul, a famous YouTuber, and Lil Yatchy, a rapper. The hype around SafeMoon has seen the coin rose to hit an ATH of $0.00001375 on the 20th of April.

Though the rally did not last so long, the token has profited from the recent rally in the crypto market that also focused on meme coins like Dogecoin. Currently, according to data from CoinMarketCap, SafeMoon is trading at $0.0000048.

Despite the popularity of the token, the developers are currently facing criticisms and allegations of running a Ponzi scheme. And in addition, crypto analysts have raised their concerns on the Unique structure of SafeMoon and the encouragement for people to hold combined with the relative newness, which is all looking skeptical.

A crypto analyst and investor, Lark Davis, have equated the SafeMoon structure to the Bitconnect Ponzi Scheme. Though the concerns raised about the platform have been reduced recently, it appears that it is going to linger for a while. A smart contract audit carried out recently by HashEx, a blockchain security firm, revealed 12 security vulnerabilities in the SafeMoon system.

The audit also reveals that there is a possibility of a short-term ownership renunciation that can lead to about $20 million loss. Additionally, the security firm mentioned that the founder of the SafeMoon contract controls a substantial portion of the token’s liquidity.

Irrespective of the mounting pressure from security concerns, SafeMoon partnered recently with a crypto and fiat infrastructure platform, Simplex. This collaboration is targeted at offering an integrated SafeMoon Wallet that will handle the increasing number of investors.

What is the Future of SafeMoon?

Amid the security concerns, the dev team of SafeMoon doesn’t seem moved, setting up internal controls on the issue of ownership. Additionally, following the criticism of the lack of functional and underlying value for the token, the dev team has begun to add more features to ensure the token compete.

Like other tokens, investing in SafeMoon calls for caution as the future depends on the community of investors around it. Being a market newbie, it will require more faith in the dev team to invest in it. But the token doesn’t have any notable future in the space in the long term.

With no definite value addition, engaging SafeMoon will largely be speculation, and analysts believe that with the pumping and dumping of the token, it will likely not “reach the moon.”