Some crypto tasks make outlandish claims whereas largely flying beneath the radar of the press, all of the whereas build up giant followings of retail traders organically. Safuu is one such project. It has nearly 47,000 Twitter followers, 32,000 Discord members and a declare that it could actually flip $1,000 into nearly $4 million in a yr.
Why it issues: Crypto could or is probably not key expertise for the long run internet-of-value, nevertheless it’s undoubtedly beset with dodgy tasks proper now. Sometimes it is price digging into this stuff so individuals know the hazard indicators.
The following will current the fundamental information of Safuu, however there’s extra to unpack right here, for certain.
How it really works: Safuu does not actually current an issue on the earth that it is making an attempt to resolve. From its documentation:
- “Safuu provides a decentralized financial asset which rewards users with a sustainable fixed compound interest model through use of it’s unique SAP [Safuu automatic-staking protocol] protocol.”
Here’s what it does:
- Safuu is all constructed round driving worth to its safuu (SAFUU) token by… giving freely extra safuu.
- When safuu is purchased or offered, it incurs a really excessive price, 14% on buys and 16% on sells.
- Those charges get break up up between varied elements of the ecosystem, all theoretically designed to make the safuu token greater and stronger.
Every time safuu is purchased or offered, 2.5% of the tokens within the transaction are destroyed (or is it 6.5%?). In crypto, that is seen as a de facto redistribution to everybody who holds safuu.
- In idea, If the availability shrinks, that ought to redistribute the market cap to all of the remaining tokens.
- In reality, most of Safuu’s weblog posts are about burning tokens.
- The marketed return comes from new tokens robotically going out to everybody who holds them, till it hits its max provide of three.25 billion tokens in 13.5 years.
After initially responding to Axios through Twitter DM, Safuu CEO Bryan Legend by no means agreed to debate the project.
By the numbers: Safuu advertises an astronomical 383,000% annual rate of interest. To be truthful, that’s in crypto phrases. That mentioned, it does additionally current these returns in greenback phrases in its docs.
- So a consumer would possibly truly accumulate 383,000% extra tokens in a yr, but when their greenback worth drops one million p.c, the holder is poorer, not richer.
Between the traces: There are 157,000+ wallets that maintain SAFUU, based on BSCScan, the explorer for the Binance Smart Chain, the place Safuu runs. Lots of those are in all probability wallets run by firms and insiders, after all.
- Still, solely, 315 wallets have greater than $10,000 price of SAFUU in them. It stands to motive that a minimum of a big portion of these little wallets are common individuals.
- Though it may very well be that the corporate has simply distributed tokens to hundreds of pretend wallets that they nonetheless management to make it appear to be they’ve customers.
- Safuu’s Legend didn’t reply to a query about what number of wallets have been beneath the project’s management.
State of play: The token has been falling persistently, from $310 in March, all the way down to about $10.58, as of this writing.
- Neither CoinMarketCap nor CoinGecko present a market capitalization determine for the coin. BscScan estimates it at round $41 million. CoinGecko’s CEO Bobby Ong mentioned that’s doubtless as a result of the project has not provided it with a method to monitor its circulating provide.
Of be aware: The identify “Safuu” references the phrase “safu,” which has grow to be crypto-speak for “safe.” For instance, the Binance alternate self-insures with its SAFU Fund.
What’s subsequent: Safuu is growing its personal blockchain, so it could actually port its operations off the Binance Smart Chain onto an area that it controls utterly.
Go deeper: The YouTube crypto investigator, Coffeezilla, dug into Safuu, poking on the background of its CEO and the place funds appeared to go.
