The team behind the cryptocurrency SafeMoon claims it has raised $1 million in order to set up its own crypto exchange.
On Tuesday afternoon, the SafeMoon Twitter account shared a screenshot of a donation progress bar that had passed the 100 percent mark.
The tweet read: “Fundraiser complete! Thank you so much! All will go towards the SafeMoon exchange!”
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Details on the proposed SafeMoon exchange are scarce. The cryptocurrency, which was set up last month, has been listed on a number of other exchanges, including ZBG, but has yet to make its debut on major platforms such as Binance or Coinbase.
SafeMoon works by issuing a fee of 10 percent to people who decide to sell the token. Half of this fee is redistributed to people who still own the currency, known as “holding.”
The token has attracted a great deal of attention online since its launch—it is the most-viewed currency on the listing site CoinMarketCap. Its social media community often rallies when news is released about the crypto, sharing the #SafeMoon hashtag.
The currency’s price rose to a high of around $0.000014 on April 20, though it fell sharply afterwards. SafeMoon is currently valued at around $0.000005, down around 10 percent in the past 24 hours and around 60 percent from its all-time high. Cryptocurrencies are infamous for volatility and the price of SafeMoon is tiny compared to bitcoin, the best-known crypto, which is valued at $54,000.
SafeMoon’s dev team says the token will be available in the Middle East soon and announced a China launch on Tuesday.
John Wu, president of Ava Labs—which developed the Avalanche platform for building crypto networks—said SafeMoon had benefited from social media hype.
He told Markets Insider: “Worst case, this is a scam or Ponzi scheme. Better case, this was a euphoric rally driven by TikTok and other viral marketing engines.”
Newsweek has contacted SafeMoon and its CEO John Karony for comment, but has not received a response.
David Gokhshtein, a prominent cryptocurrency investor, wrote in a tweet on Monday: “Talk to me about SafeMoon when the security audit is done.”
It is not clear which audit Gokhshtein meant but CertiK, a cryptocurrency security ranking platform, is in the process of assessing SafeMoon.
Last week a number of finance experts told Newsweek about the risks associated with investing in cryptocurrencies.
Andreas Park, associate professor of finance at the University of Toronto, said: “Crypto assets are at the very high-risk end of the spectrum and it is entirely possible that many of these assets will disappear within a few years.”
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