Insider trading alert: Safereum Devs dump native token, should you worry?

Based on a recent report by a blockchain security analyst, the Safereum project has sold a large sum of its native tokens totaling 700 ETH. This caused a decline in its price by over 90%, causing an alarm among crypto investors wondering if they should be worried or term the situation as a rug pull. 

The crypto space has been a pool of great investment opportunities. Still, it is a hotbed for speculative trading with risks of rug pulls and scams. The Safereum project has been well known for its promising potential but is now facing allegations of an intended unlocking and dumping of its native token by its developers.

Safereum project native token sale

Reports posted by CertiK and other analysts have confirmed Safereum’s 700 ETH sale that followed its finalized fundraising that raised $600,000. This was hours before the massive sale that shocked its investors and raised concerns about the project being a rug pull. 

According to reports on the matter, the project unlocked the supply of the token and later dumped more than 600 Ether using their “safereum.eth” token deployment address. As a result, the SAFEREUM token’s value dropped by 94%. 

The crypto project emerged in the crypto landscape as a new project that was launched to enhance security within the industry. The project focused on creating a uniquely secure ecosystem by creating a decentralized market favoring cybersecurity services. 

SAFEREUM was designed to be the platform’s native token that was to incentivize its participants who contributed to its growth. The rug-pull came after the project finalized its fundraising for a derivative token termed “Safepad.” 

The funds raised also constituted part of the massive sum stolen. The total amount is estimated to be $1.27 million, accounting for 720 ETH. Certik also confirmed legitimate funds were already being distributed through a series of transactions in various wallets. 

Unlocking these tokens of such a massive magnitude often results in large supply entries in the market. The long-term result of this is the devaluation of the underlying token, in this case, SAFEREUM. 

In addition, the official Safereum account on X (formerly known as Twitter) has been deleted. Coupled with the rug pull, this development seems to cause concerns in the crypto community as the project investors worry about whether their funds will be accessible or reimbursed. 

It seems the influencer ProTheDoge is back at it promoting scams as an official partner of the project.

This time it was Safereum which just rug pulled with 730+ ETH ($1.2M).

0x67c8423a7709aDB8ED31c04DcbB0C161637b807F pic.twitter.com/o5qi9rmC3e

— ZachXBT (@zachxbt) October 23, 2023

The project’s native token, SAFEREUM, was trading at $0.000014 and plummeted to $0.0000008 after the alleged exit scam. This was a 94.1% decrease in its market value and current charts by CoinMarketCap expose a 95% drop at the time of writing. 

Sentiments on the Safereum project massive sale

The pseudonymous NFT trader named Died.eth highlighted his views on the rug pull and confirmed it is among the more “insane” scams ever witnessed. In a post on X, they explained to their 12,600 followers, “Safereum / safepad just hit the most insane rug I’ve ever seen, after finalizing their 700e safepad presale they’ve dumped over 600e of safereum and safepad for one final exit,” 

Several influencers have also been mentioned for their alleged role played in the Safereum project promotion. ZachXBT, a blockchain sleuth named a pseudonymous X user, ProTheDoge, for the role of an official promoter of the scam project. 

ZachXBT’s post on X pointed out the suspicious Safereum promoter tagging threads the user posted on the social platform. The Safereum project comes as a reminder to exercise caution when placing investments in cryptocurrencies. 

It is essential to research projects before going through with financial decision-making. As such, it’s much more promising to invest in decentralized projects that involve the community’s decision on certain matters, including unlocking tokens. This allows for a greater level of accountability and transparency.