Ponzi scheme is clearly a fraud intentions to dupe investors. Ponzi schemes are now becoming famous via cryptocurrencies. Many crypto miners are duping investors money. Recent was safemoon.Critics of the SafeMoon project seem to be wary of it as it is believed that this cryptocurrency was started to generate hype. The SafeMoon crypto reportedly does not have any real-use case and it is criticized for rewarding hodlers and punishing sellers. It is alleged that SafeMoon's policy of punishing sellers discourages people from selling and that is a way to avoid day-trading and fix price volatility. SafeMoon charges a 10 per cent fee on each sale and says that it will reward long-term hodlers by distributing half of the fees charged from sellers among existing coin holders.
In addition, SafeMoon has a very high token supply of 1,000,000,000,000 tokens. Before the launch, the developers had reportedly burnt 223 trillion tokens and they can indulge in manual burns. This means that developers can regularly burn tokens and reduce the supply, which could cause the price of the token to go up.