First of all, this post is NOT investment advice and even the name SafeMoon is not representing the risk involved with this token.
This is clearly one of the riskiest out there so do not invest what you are not willing to loose.
SafeMoon employs 3 simple functions: Reflection + LP acquisition + Burn In each trade, the transaction is taxed a 10% fee, which is split 2 ways.
- 5% fee = redistributed to all existing holders
- 5% fee is split 50/50 half of which is sold by the contract into BNB, while the other half of the SAFEMOON tokens are paired automatically with the previously mentioned BNB and added as a liquidity pair on Pancake Swap.
I believe these 2 simple functions are very useful and effective. As I was looking at the different metrics, it seems there is already an LP of c.8% of Safemoon Marketcap due to this sytem.
The 5% fee is also a big incentive to HODL your coins. One that is even better is the fact that when you buy into this token, you have to "at least" make a +10% profit to just get out even.
As many are looking for more, they will hodl knowing that to get back they will have to take a 10% cut. If you ask me, this is very powerful on the mindset of investors.
A Burn has already happened as shown above and if you read on the praragraph mentioning the 3rd function: Burn
Having burns controlled by the team and promoted based on achievements helps to keep the community rewarded and informed. The conditions of the manual burn and the amounts can be advertised and tracked.
This means we would have to trust the team to initiate other burns going forward and depending on different milestones being reached.
I guess they would have an incentive to do so as any of these burns will pump the price.
They might be inflated but it is true I know a lot of HODLers and some just joined crypto recently (who said we were at the top xD)
You can follow their twitter here and they are quite active.
They seem to have a very nice team doing nice promo videos and so forth.
As shown above:
Basically you have to trust then but it seems they are really commited and active.
When I think about some cryptocurrencies taht developped NOTHING in 4 years and still have multibillions Market Cap (Hello Cardano and ChainLink). Why not Safemoon?
Seeing SHiba Inu (SHIB) being listed by Binance with not so much HODLers and notorious whales controlling the cryptocurrency.
I would think SafeMoon has a shot as they have a >+$30mn daily volume.
Never forget that CZ and Binance are so eager to make easy profit that they could definitely leverage this one easily. In addition this is a BSC project and it will make sense for them to list it.
The only doubt I have is that Safemoon intends to later develop an exchange which might not be to the taste of Binance.
To trade it I do it through Bogged.Finance a very cool project that I will talk about later.
The main issue is the centralization of some part of this coin; especially concerning the LP.
These issues have been acknowledged and the team has answer with a way to try to fix it.
So here we are, I have invested a little bit and I am just collecting these fees and who knows, maybe a big burn or some pump might give me a great ROI.
Posted Using LeoFinance Beta