Safemoon To Be Listed On Binance

Cryptocurrency technology visitor and token

Safemoon

Founded	2021
Headquarters	Pleasant Grove, Utah, United states of america
Area served	Global
Fundamental people	Braden John Karony (CEO)
Products	Cryptocurrencies
Number of employees	= 100+[1]
Website	www.safemoon.com

SafeMoon LLC
is a cryptocurrency and blockchain company created in March 2021.^[2]
The company also has a SafeMoon token (SFM) which trades on the Binance Smart Concatenation blockchain.^{[3]
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The token charges a 10% fee on transactions, with v% redistributed (or
reflected) to token holders and five% directed to wallets in a different currency, Binance Coin (BNB), controlled by the coin's authors.^[6]
[7]
The token reached its all time high marketplace cap in Apr 2021 of $17b. As of December 2022, it has since dropped 98.7% in value to $223m.^[8]

The SafeMoon company has released a minimal-office cryptocurrency wallet and has announced plans to release other cryptocurrency products. The company and the token have been the subject of several controversies since conception; past being compared to a "ponzi-scheme", not delivering on products, having multiple class-action lawsuits filed against them, and facing serious fraud allegations.^[ix]

History

SafeMoon

SafeMoon logo
Denominations
Code	SFM[10]
Development
White paper	Whitepaper
Code repository	Safemoon.sol
Development status	Active
Developer(s)	SafeMoon LLC
Ledger
Block explorer	SafeMoon V2: BscScan
Circulating supply	SafeMoon V2: 564,965,664,425 (as of 17 April 2022[update])[10]
Supply limit	SafeMoon V1: 1,000 Trillion SafeMoon V2: 1 Trillion
Valuation
Market cap	SafeMoon V2: $292,130,074 (equally of 26 September 2022[update])[10]
Website
Website	safemoon.com

2021:
SafeMoon version one

SafeMoon was released in March 2021. A compound of "Safe" and "Moon". The token was released with the slogan of landing "Safely to the moon", derived from the slang phrase used in the cryptocurrency community; "To the moon" which is used to describe a crypto token "to chop-chop rise in price". The token had no utility and team when information technology was launched. Upon release,
Vice
reported that between March 14 and April 21 of 2021, SafeMoon increased in value past 23,225% following glory endorsements from musicians Lil' Yachty and Nick Carter, YouTuber Logan Paul, social media hype, new substitution listings, and retail investors. At that time,
Vice
said that "cryptocurrencies like SafeMoon yet have no real-world use."^[11]
These celebrities were subsequently sued by many SafeMoon investors every bit office of a class-activity lawsuit branding SafeMoon to be a part of a pump and dump scheme.^[12]
Later on the substantial rise in cost, the unknown developers of the token appointed Braden John Karony equally the CEO of Safemooon and registered as a Limited liability visitor with aims of providing utility to the token. Before this appointment, Karony served equally a one-time analyst for the United States Department of Defense from January 2015 to January 2021.^[iii]

In May 2021, SafeMoon appear making a presentation to The Gambia to provide "technology for innovation and learning purposes".^[xiii]
The projection was dubbed "Project Pheonix" (the misspelling of Phoenix being intentional), SafeMoon released a familiar crypto pitch of serving the "unbanked" and claimed to be working with local governments to adopt the token as a local currency. A company run by John Karony's mother ECG LC, was set in May 2021 to deliver this projection.^[14]
On August 27, 2022, John stated that his reasons for discontinuing his work in West Africa were due to supply chain problems, which is disputed by his mother in the ongoing Project Pheonix lawsuit.^[xv]

In June 2021, the project began beta testing of the SafeMoon wallet.^[16]
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The app was officially released on Google Play in September 2021^[xviii]
and the App Store in October 2021.^[nineteen]
Critics dubbed the wallet to be a copy of the Trust Wallet owned by Binance.^[15]
Thomas Smith, who was the CTO for Safemoon, left the company in December 2021 for a role as a blockchain advisor for StrikeX, nonetheless, was dismissed by the visitor after the fraud allegations uncovered by Stephen Findeisen.^{[20]
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2022:
Migration to SafeMoon V2

In December 2021, SafeMoon developed Version two of their token (SafeMoon V2), an updated version of the SafeMoon contract.^[22]
As part of consolidating to V2, the SafeMoon team implemented a deadline to migrate their tokens, or else investors would exist faced with a 100% tax. The squad also released a decentralised commutation titled "Safemoon Swap" equally the only place where this migration could happen. In April 2022, Safemoon announced a new product, the Safemoon card. The Safemoon card was promoted every bit a debit carte that can exist used to pay for appurtenances using SafeMoon (and other cryptocurrencies) for a 2.5% fee. Some experts criticized paying an additional fee to pay for appurtenances, contrasting it to Crypto.com's bill of fare which instead rewards users with a percent render in crypto depending on how much of their native token they are holding.^[23]
Although the carte du jour was supposed to be released in July 2022, as of December 2022 its release has been delayed.

Since the date of Karony in 2021, SafeMoon has appear plans to launch its own cryptocurrency substitution past October 2021, withal, this was pushed to December 2022 and has again been pushed dorsum to the end of 2023. The company too has plans to launch a blockchain, hardware wallet, and to become a macro Net of things infrastructure on its own blockchain.^{[24]
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Criticisms and legal issues

Parallels to a meme coin

The token has been described pejoratively in May 2021 as a "meme coin" alongside Dogecoin and Shiba Inu, with much of its value attributed to the result of the 2021 crypto market frenzy.^[2]

The developers of SafeMoon have been described every bit having "picayune proof of previous success",^[five]
with the token having been described past some financial experts as "the furthest affair from safety"^[27]
and that it "doesn't practise anything".^[27]

Security issues

In May 2021, the V1 version of the token was audited past security auditing firm CertiK, which identified a "major upshot" that the projection's owners accept "control over tokens funded by SafeMoon's seller fee".^[28]
[27]
An possessor address acquire'due south the liquidity puddle tokens generated by the Safemoon-BNB pool. This gives the owner control over tokens funded by Safemoon's seller fee. This characteristic was later the subject of the 2022 Safemoon fraud allegations. London Capital's head of inquiry Jasper Lawler likewise noted that the Transmission Burn down attribute of Safemoon paired with the controlling companies' large stake in the coins opens the project upward to manipulation by the projection controllers.^[29]

Ponzi-scheme comparisons

After the cost of a SafeMoon token multiplied by 12x during a single week in Apr 2021,^[30]
opinion columnists in various fiscal magazines likened SafeMoon to a ponzi scheme^[31]
or pyramid scheme, where gains to early investors were paid only past incoming investors who expected a similar rate of return, with some citing the fact that each transaction sends a portion of the transacted value to existing holders of the token, also as a portion of the transacted value to a wallet controlled by the coin's authors.^[32]
Furthermore, Safemoon's token economic science utilises a 10% sell tax. This means that for every $g auction, an investor would be charged $100. Many critics argue that this discourages investors to sell as they are at a loss equally soon equally they invest. The tax from the new investors is used for many things including distributing a small percentage of it to existing investors.^[33]

2022 fraud allegations

In April 2022, Stephen "Coffeezilla" Findeisen, a prominent contained researcher who investigates crypto scams defendant the SafeMoon squad for misappropriating millions of dollars.^[34]
According to Findeisen, Safemoon CEO Karony, has been removing funds from the liquidity pool which is the master explanation of the crypto's toll blueprint. Findeisen found evidence of transactions which showed Safemoon's liquidity wallet moving funds to a wallet dubbed the "Gabe (6abe) wallet" which withdrew funds to a dissever company run by John Karony. Former SafeMoon CTO; Thomas "Papa" Smith was the only person who responded to Findeisen's claims stating that funds were taken from the “locked liquidity pool” before Karony’south appointment. He sent Smith testify of this in the form of a blockchain transaction showing an outflow of 36.7 trillion tokens from the liquidity pool, dated March 5, 2021.^[35]

Class-activity lawsuits

On February xviii, 2022, in a class-action lawsuit filed confronting the SafeMoon that alleged the company is a pump and dump scheme, Paul was named every bit a defendant forth with musician Nick Carter, rappers Soulja Boy and Lil Yachty, and social media personality Ben Phillips for promoting the SafeMoon token on their social media accounts with misleading data.^[12]
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On the same solar day, the U.Southward. 11th Circuit Court of Appeals ruled in a lawsuit against Bitconnect that the Securities Human action of 1933 extends to targeted solicitation using social media.^[37]
Findeisen, who had just shone a light on the 2022 SafeMoon fraud allegations supported the claims that Paul and Phillips were pumping and dumping Safemoon tokens during this time which saw a decline of 96% in token cost.^[38]
On August 22, 2022, it was documented that David Portnoy, who was as well a defendant in this case, was dismissed from the lawsuit after it was revealed that he never received any compensation from Safemoon for promoting the token and that he also lost his investment from buying SFM.^[39]

In May 2022, multiple SafeMoon investors filed another class action lawsuit confronting SafeMoon for security fraud. The lawsuit which is represented past Scott+Scott, was voluntarily terminated by the plaintiff without prejudice per notice in November 2022. This ways the case tin can be retried if the plaintiff wishes to in the future.^{[forty]
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Project Pheonix lawsuit

As function of Project Pheonix, a separate company
Emanations Communications Group LC (ECG)
was gear up up and led by Safemoon CEO John Karony's mother, Jennifer, to provide antenna technology to The gambia. The visitor has since been seized past Lex Belong Ltd.^[xiii]
Every bit part of this venture, John invested $v 1000000 into the project in June 2021. It was claimed that Karony funded this investment from Safemoon's liquidity puddle which was supposedly locked up.^[44]
As part of this capital letter investment John agreed 33.34% pale in the company & future profits, besides as his own personal bills, to come out of the company.^[45]
ECG determined that John Karony created too many regulatory risks and that due to multiple lawsuits filed against him and his visitor (Safemoon), were uncomfortable accepting any more upper-case letter investments from him. As a consequence, John Karony filed a lawsuit against ECG for breach of contract and accused his mother of legal trickery to remove him from ECG.^[46]

ECG adult technology relating to Project Pheonix which was presented to John in Dec 2021. According to court documents, John had been disclosing information well-nigh developing technology for the do good of SafeMoon to make claims on SafeMoon’s website and social media accounts about the technology. He was counselled not to practise and so by ECG (particularly his mother) because of potential adverse furnishings on pending patents and other intellectual property.^[47]
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In March 2022, John and his counsel met with Project Pheonix partners Sankung Jawara and Pa Alieu Jawara, and offered them an upfront payment of $350,000 to cut Jennifer Karony out of the transaction, which they refused. John then negotiated an offering to pay them of up to $4.5 1000000, to be paid out over time, with the understanding that Jennifer was once again removed from consideration. Sankung and Pa Alieu once more refused, due to the proposed circumvention of the business partnership and John'southward assertion that at that place was a manner to circumvent the legal and parliamentary procedures required for John'south desired bank projection.^[14]

Karony's mother stated that John had not provided a plan for Project Pheonix and was non interested in the content of the financial documents, simply was looking for "opportunities to take pictures of the lab to substantiate his published claims of owning ECG labs which he called 'Area 32' or 'DarkMoon'". Due to the lawsuit, Projection Pheonix has since been abandoned. On August 27, 2022, John stated that his reasons for discontinuing his work in West Africa were due to supply chain problems, which is disputed by his mother.^[14]
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See as well

• Decentralized finance
• Meme coin
• Binance Smart Chain

References

External links

• 
  Official website