If you’ve read part one of my beginner’s guide to investing in crypto, you’ll know the most important aspect of crypto investing is to do your own research (DYOR).
Spending a little time researching a crypto can save you your entire investment. Doing this will give you a fairly good idea if a crypto is a worthy investment.
There are three useful resources every crypto investor needs to know about.
Look at the reddit communitiesSo let’s use these resources to find out why you shouldn’t invest a cent in SAFCOIN.
#1: The whitepaper - A coin betting on hope
This is where the creators of the crypto lay out their plan. They explain – usually very simply – how it works and what it hopes to achieve.
This is the starting point of your research into any crypto you want to invest in. You can learn an awful lot from the crypto’s white paper.
Let’s look at SAFCOIN’s whitepaper…
The introduction of the whitepaper gives some spiel about how the lack of knowledge in Africa led to many Africans losing out on huge profits from investing in Bitcoin and other cryptos.
Then it goes on to entice investors by showing how bitcoin jumped dramatically when it launched – to prove that the best time to buy is during the initial coin offering phase.
Obviously, hoping to entice people to invest in their SAFCOIN’s ICO.
Then they go on to introduce and describe how it works.
“Our pre-sales initiative gives South Africans an opportunity to be the early adopters, allowing them to invest before it’s listed on African and global trading exchanges.
We predict that once SAFCOIN is listed on trading exchanges, the available tokens will be quickly snapped up by cryptocurrency investors across the world. This is why we wanted to give South Africans an opportunity to secure their wealth before anyone else…”
Now here’s the problem…
Firstly, you have to rely on these “experts” prediction, that this coin will be adopted worldwide. In other words, the only way for you to make money is to hope people around the world buy SAFCOIN.
This is a huge warning sign. In my view, this coin is basically worthless. There is no technology behind the coin.
In fact, anyone with the proper expertise and skills can create a cryptocurrency out of thin air. Remember a coin called “LOLcoin”? well, that failed miserably.
And what is the goal of this coin?
“See SAFCOIN become a widely accepted form of payment that boosts trade between African countries.”
Now, why would any country or organisation want to use this coin for trade, when right now, companies and countries are testing the technology behind bitcoin, ethereum etc. to help vastly improve the global payments system.
The fact is, this coin is based on “hope”. And you don’t invest in something based on hope.
#2: The website – a team of unknown creators
The main reason to go to the crypto website is to check out the team behind it and check their backgrounds. If they don’t give much background, steer clear. You can also look for any partnerships they have.
It’s a nice looking website but when you look at who created the coin, this is what it says…
SAFCOIN was created by a group of South African crypto enthusiasts and entrepreneurs with fearless determination to make crypto trading a reality for every African. FHM (Pty) Ltd was registered as the company to legally run the development.
I could go on, but there’s no point. The fact is, there’s no names of anyone in the team.
Some company by the name of “FHM” runs the project. And, there are no details about who FHM are.
The only thing it states is that, FHM is a registered member of the World Blockchain Association.
The thing is, this doesn’t mean anything, as you can literally go right now and register for free. So here’s another warning sign to stay away from this crypto.
The social community – All agree this is a dodgy scam
Reddit is one of the best places to find information on any crypto. You have hundreds, if not thousands of people adding to the debate. And people usually vote if the information is extremely helpful or just rubbish.
Because SAFCOIN is locally made, there won’t be any discussion on Reddit. However, I did some research and came across some views of this crypto from South Africans in the forum section on mybroadband.co.za.
Here’s what a couple of users said…
This looks super sketchy. The 'white paper' has nothing of any substance, and they keep referring to bitcoin and how it has increased in value, as if that is what will happen to this coin.
I have a friend that was part of the whatsapp group and when asking some questions, eventually got kicked out. That aside, the fact they operate out of a whatsapp group doesn't sit well with me.
Of course it’s a scam... may as well have a white paper saying you've inherited $500bil from a prince but requires you to purchase 'safcoin'.You can clearly see, I’m not the only one who’s sceptical of SAFCOIN.
Yes, people could buy into it and it lists on a couple of exchanges. But what also could happen is they manage to sell the 500,000 at R75 each - that’s a whopping R37.5 million in profit – and run away.
I’m not saying this will happen, but we’ve seen these sorts of investment opportunities arise all too often.
My recommendation is don’t invest in SAFCOIN.