These sudden rises come after similar coin Dogecoin also spiked earlier this year.

While SafeMoon claims it will reward people who buy the token and hold onto it instead of trade, its value still depends on people holding it, so it can not promise it will reward people.

It intends to encourage people to hold on to the coin by imposing a 10 percent penalty tax fee on sellers and redistribute the seller fee to people who hold onto the coin.

But some experts have noted the similarity of this mechanism to a pyramid scheme, which requires more and more investors to keep the investment structure alive.