the game of bitcoin

SAFCOIN released this week and there seems to be a lot of suspicion surrounding it. People can’t decide if it’s a cryptocurrency worth investing in, or just another scam. In this post, I will be looking into SAFCOIN and the team behind it.

SAFCOIN Launches!

On December 13, 2018, SAFCOIN launched after the ICO period ended on the 31st of October 2018. Now, everyone that missed out on the ICO is able to get involved.

What an exciting year it has been for us. We are proud to be part of the blockchain and crypto revolution. We are excited to bring the SAFCOIN blockchain, mobile app and exchange to the people of South Africa.

Neil Ferreira, Co-Founder and CEO of the SAFCOIN founding company, FHM (PTY) Ltd.

During the ICO period, many people doubted if SAFCOIN would even launch due to the wave of ICO scams in the crypto space. Inevitably, this makes it difficult for real startups to enter the market successfully.

Claiming they aim to tap into numerous ways crypto can positively impact Africa, Ferreira states:

We are not here to overthrow the existing financial system but rather tap into the numerous benefits of crypto for Africa by developing use case technology for every individual to benefit from the positives of crypto-currency. All whilst maintaining the highest levels of business ethics and standards

But is this suspicion justified? Let’s take a deeper look into some red flags surrounding SAFCOIN.

Red Flags

Now technically, what SAFCOIN is doing isn’t illegal, but it will definitely end in tears. No question. They pre-sold 500,000 SAFCOIN at an ICO for R70 ($4.89), then another 5.5 million tokens will flood the market. Effectively, the market will be flooded with these tokens with no use case, and sellers will eventually drive the price down to zero.

With no mining method except a vague promise that it will eventually come, we can expect 5.5 million pre-mined coins. Effectively, at R88 a token, and a total supply of 6 million tokens; they give themselves a market cap of R528 million without an actual product. This isn’t always a bad thing, not all coins can be mined, but with no personal information on anyone involved with the project, it looks shady.

Taken directly from their website, this is the extent of their team description:

SAFCOIN was created by a group of South African crypto enthusiasts and entrepreneurs with incredible market knowledge of the technical world in programming, networking, online trading and exchange.

As well as this, their whitepaper says nothing with any substance. For example, they refer to their auditor, without actually naming them. This in itself is not a bad thing, and could just be an oversight.

Red flag 2

Most of both the SAFCOIN whitepaper and website is just bold statements and buzzwords; all without substantial explanations of what SAFCOIN is going to bring to the table. With claims of gradually becoming a widely accepted form of payment without any reason why this may be it becomes clear that SAFCOIN isn’t being genuine. In fact, in reading SAFCOIN whitepaper, it raises more questions than it answers. No wonder they removed the whitepaper from their website.

SAFCOIN seem to constantly apply FOMO (Fear Of Missing Out) techniques in order to gain more popularity. Neil Ferreira uses terms such as ‘missed out opportunity’ and ‘late sleepers’ to encourage South Africans to hop aboard before it’s too late, and “be part of history and wealth”.

be part of safcoint revolution and history

At one point, Ferreira stated:

The start-up phase is the most lucrative time to invest in cryptocurrencies, but Africans have missed the boat on many of the global start-up opportunities

He is subtly referencing the Bitcoin rush of 2017 as a missed opportunity to gain massive returns on their investment. Ferreira’s main goal seems to be to encourage Africans to “secure their wealth” by investing in SAFCOIN.

Back-peddling

Highly Respected South African news outlet, the Daily Maverick appeared to have felt duped. They posted a blog post about the ICO for SAFCOIN, claiming it was a promising startup. The tweet promoting the post went live on September 26, 2018 — and due to the backlash from the community claiming SAFCOIN is a scam — they quickly removed the blog post from the website. {be careful when you read sponsored articles}

After suffering a constant barrage from cryptocurrency enthusiasts on Twitter, the SAFCOIN twitter account decided to reply to some backlash. While this practice is common, SAFCOIN may be a bit too emotionally invested with their response.

Conclusion

The entire SAFCOIN project looks like an obstacle course full of confusion and hurdles. We always advise the community to do their own due diligence into any cryptocurrency, else simply stay as far away from it as possible. If you’re looking to invest in something other than Bitcoin, there are many other altcoins that are less risky alternatives such as Cardano, Dash, Litecoin and many more.

The iCE3X cryptocurrency exchange lists 10 different cryptocurrencies, giving our users the freedom to choose which coin they’d like to trade as well as providing a safe and secure on-ramp for more experienced cryptocurrency traders who seek a wider variety of alternative assets.

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Disclaimer Notice:

This article is intended to educate and should in no way be seen as investment advice or an enticement to use the ice3x.com platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.