A crypto project that promises 300,000% return

Some crypto projects make outlandish claims while going largely unnoticed by the press, while also amassing a large following of retail investors organically. Safuu is one of those projects. He has nearly 47,000 Twitter followers, 32,000 Discord members, and claims he can turn $1,000 into nearly $4 million in one year.

Why it matters: Crypto may or may not be a key technology for the future Internet of Value, but it is definitely riddled with dodgy projects right now. Sometimes it pays to go deeper into these things so that people know the danger signs.

From Safuu's documentation
From Safuu’s documentation explaining their fixed APY. Screenshot: Safu.

Monitoring It will present the basic Safuu facts, but there is more to unpack here, for sure.

How does it work: Safuu doesn’t really present a problem in the world that he’s trying to solve. From the documentation of it:

  • “Safuu provides a decentralized financial asset that rewards users with a sustainable fixed compound interest model through the use of its unique SAP [Safuu automatic-staking protocol] protocol.”

This is what it does:

  • Safuu is all about boosting the value of your safuu token (SAFUU) by… giving away more safuu.
  • When buying or selling safuu, a very high fee is incurred, 14% on purchases and 16% on sales.
  • Those fees are split between various parts of the ecosystem, all theoretically designed to make the safuu token bigger and stronger.

Every time safuu is bought or sold, 2.5% of the tokens in the transaction are destroyed (or is it 6.5%?). In crypto, this is seen as a de facto redistribution to everyone who has safuu.

  • In theory, If the offer is reduced, that should redistribute the market cap to all remaining tokens.
  • In fact, most of Safuu’s blog posts are about token burning.
  • The advertised return comes from new tokens being automatically sent to everyone who holds them, until it reaches its maximum supply of 3.25 billion tokens in 13.5 years.

After initially responding To Axios via Twitter DM, Safuu CEO Bryan Legend never agreed to discuss the project.

By the numbers: Safuu announces an astronomical annual interest rate of 383,000%. To be fair, that is in crypto terms. That said, it also presents those returns in dollar terms in its documents.

  • So a user could accumulate 383,000% more tokens in a year, but if their dollar value drops by one million percent, the holder is poorer, not richer.

Between lines: There are more than 157,000 wallets holding SAFUU, according to BSCScan, the explorer for Binance Smart Chain, where Safuu runs. Many of these are probably wallets run by companies and insiders, of course.

  • Still, only 315 wallets have more than $10,000 worth of SAFUU. It stands to reason that at least a large part of those small wallets are normal people.
  • Although it could be that the company has just distributed tokens to thousands of fake wallets that they still control to make it look like they have users.
  • Safuu’s Legend did not respond to a question about how many wallets the project controlled.

State of the situation: The token has been falling steadily, from $310 in March, to around $10.58, at the time of writing.

  • Neither CoinMarketCap nor CoinGecko provide a market cap figure for the coin. BscScan estimates it at around $41 million. CoinGecko CEO Bobby Ong said that the project likely did not provide him with a way to track his circulating supply.

Of note: The name “Safuu” refers to the word “safu”, which has become crypto for “secure”. For example, the Binance exchange is self-insured with its SAFU Fund.

Whats Next: Safuu is developing its own blockchain, so it can transfer its operations from Binance Smart Chain to a space that it fully controls.

Go deeper: YouTube crypto researcher Coffeezilla took a deep dive into Safuu, digging into the background of its CEO and looking at where the funds seemed to be going.

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