Dave Portnoy Buys SafeMoon, Says He Doesn’t Know Why

The founder of Barstool Sports, Dave Portnoy, has released a video where he picked SafeMoon as his sh*tcoin of choice. Portnoy said he purchased $40k worth of SafeMoon as a hedge against the fragility of Bitcoin.

However, popular crypto YouTuber Lark Davies continues in his calls that SafeMoon is a Ponzi scheme. A month ago, as SAFEMOON was blowing up, Davies posted a tweet in which he likened it to the most infamous scam in crypto history, Bitconnect.

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Dave Portnoy Diversifies Into Alts

Portnoy is best known as the founder of the sports and pop culture blog Barstool Sports. But he began gaining popularity for live-streaming his stock trades.

A little under a year ago, Portnoy crossed over into the world of crypto by asking the Winklevoss twins to teach him about BTC in a live stream.

In February, he exited his Bitcoin position before it pumped to $51k, missing out on the gains as a result. He responded by venting on social media, saying he will never rebuy Bitcoin.

“I’m never buying Bitcoin. Never never, I don’t believe a thing about it. But I do think it’s profitable, and I think there’s enough steam that it may just continue to go up forever. But I don’t buy the underlying junk behind it.”

Despite that, Portnoy did buy back into Bitcoin.

More recently, he has turned his attention to alts, which is, as he claims, a response to the Elon-FUD of the past week. In a humorous video, the Barstool President narrowed down his choice of alts to six, eventually announcing SafeMoon as his pick.

“It’s time for me to choose a side, and I’ve done that. Here we go, DOGE, ASS, Litecoin, SafeMoon, SHIBA, HOGE. The new breed of sh*tcoins, and I’m going to pick one and I’m going to become the leader. I’ve already purchased $40,000 of the coin…”

Davies Warns Off Investing In SafeMoon

As “leader” of SafeMoon, Portnoy said he would not sell in the near term. Adding that he will “ride it to the stratoshpere or hell on earth.”

However, Portnoy’s research methods leave a lot to be desired. On justifying his choice, he said it could be a Ponzi scheme. But he likes the word moon.

More worryingly, he recommends getting in now, saying it’s the early buyers that walk away in profit should SafeMoon collapse.

“Why? I don’t know f*cking why, it could be a Ponzi scheme. I like the word moon because that’s where I want to go so I’m buying SafeMoon. I also like how every f*cker is selling out there, you get a 10% penalty that disperses 5%… Ponzi, Ponzi, Ponzi. It’s early, if it is a Ponzi, get in on the ground floor…”

In response to the video, Davies accuses Portnoy of promoting a Ponzi scheme.

Paper hands Dave is now promoting the #safemoon ponzi scheme…. yeah, that is about on brand for him.”

Davies concedes that people may have made money on SafeMoon. But the situation is no different from Bitconnect. Back then, people who called out Bitconnect were attacked. But when the rug pull came, most lost out.

SafeMoon chart

SafeMoon chart

Source: SAFEMOON on CoinGecko.com


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Crypto YouTuber Draws Parallels Between SafeMoon and Bitconnect

Popular crypto YouTuber Lark Davies tweeted a warning over the new Binance Smart Chain project SafeMoon. He likened its rising popularity to the now-defunct Bitconnect scam, saying the euphoria of gains is blinding users to “the obvious.”

Bitconnect arrived on the scene in 2016, promising high returns for holding, trading, lending, and mining its BCC token. But things began unraveling in January 2018 when Texas and North Carolina regulators issued a cease and desist order. Bitconnect has earned a place in history as one of cryptocurrency’s biggest scams. But, is Davies right to lump SafeMoon in with the same company?

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What is SafeMoon?

SafeMoon launched last month on March 14 with a debut price of $0.00000008. Since then, particularly over the last week or so, its price has mooned. SafeMoon is up +980% over the last seven days, hitting an all-time high of $0.00000919 yesterday.

SafeMoon price chart

SafeMoon price chart

Source: SAFEMOONUSD on CoinGecko.com

SafeMoon is an auto-generating liquidity protocol that rewards holders and penalizes sellers. It imposes a 10% penalty on sellers and redistributes 5% to existing holders, while it’s unclear who directly benefits from the other remaining 5%.

“5% fee is split 50/50 half of which is sold by the contract into BNB, while the other half of the SAFEMOON tokens are paired automatically with the previously mentioned BNB and added as a liquidity pair on Pancake Swap.”

The project describes itself as a “community driven, fair launched DeFi Token.” It talks about three simple functions, those being Reflection, LP Acquisition, and Burn.

Its whitepaper says “Reflection” relates to the concept of static rewards, which they say tackles the problem of falling APYs and encourages users to hold on to their tokens.

“LP Acquisition” relates to their mechanism of matching buyers and sellers, which they say creates a “solid price floor,” therefore minimizing price dips.

As the term suggests, ” Burn” relates to the burning of tokens, but in a documented and transparent way. The theory here is to reduce supply and therefore increase the value of tokens.

Some point out that the setup is similar to a Ponzi scheme. SafeMoon’s success relies upon more and more people buying in and holding – a model it encourages by penalizing sellers.

However, some have praised SafeMoon CEO John Karony for his willingness to hold AMAs and engage with the community.

Binance Smart Chain Rug Pulls

Binance Smart Chain (BSC) is gaining ground as a serious competitor to DeFi on Ethereum. The promise of cheap gas fees and quicker transactions appeals to users. But its rise in prominence has been marred by several rug pulls since its inception.

People expect rug pulls to happen on Ethereum due to its decentralized status. But because anyone can launch a token on BSC, the same problem remains.

The biggest BSC rug pull to date was MeerKat Finance, in which $14 million BUSD and 73.6k BNB, totaling approximately $30 million, went missing in early March. The project claims it lost the funds through a hack.


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