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Those new to crypto beware of Safemoon

Those new to crypto beware of Safemoon

Richard Heart is a prominent and outspoken member of the crypto community. He compares Safemoon to Powh Coin, an alleged ponzi scheme that went out of business in 2018. 

Richard Heart is the larger-than-life CEO and founder of the cryptocurrency platform Hex. He’s certainly unafraid to take people or projects to task if he believes that they are not acting in the best interests of the community, and this is what he did when asked on his Twitter account if he thought Safemoon was a scam. 

 

Heart followed up by warning all investors that Safemoon is just a copy of other ponzi schemes from 2017. He referred to the project Powh Coin as the “mirror reflection” of Safemoon, posting snapshots of the similarities in the business model of both projects. 

According to the International Business Times, which covered this story, Powh Coin was publicised all over social media as being a legitimate pyramid scheme.  

Due to this, the coin grew quickly and reached a value of around a million dollars. However, it appears that the Powh Coin devs coded a back-door into the token that allowed unidentified third parties to approve investor transactions and siphon them off to other accounts. 

The malicious code behind the token enabled an unidentified person to sell on behalf of an investor without them knowing. It also allowed them to send the proceeds into their own account rather than that of the investor. 

According to the International Business Times: 

“The coin vanished in 2018 after draining out all the money and left investors high and dry with nothing but screenshots of their assets.” 

The cryptocurrency sector is still extremely nascent, and therefore there will always be scams to take advantage of the unwary and those new to the sector. 

Safemoon appears to be one of a series of “meme coins” that new crypto investors are snapping up, no doubt due to the amount of promotion they receive on social media. All should beware, and do your own due dilligence, but also try to get advice from the more reliable sources in the crypto industry. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.    

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