Safemoon review: A nugget or a big, well-made Ponzi?

Even if the token is very recent (launched on March 9, 2021 to be exact), we hear a lot about this token, don't you think? Only 1 week after its release with great fanfare, hundreds of investors rushed to it arguing that it was the next token that was going to make us rich. Moreover, with an increase of more than 8000%, some have not hidden from showing off their new wealth, acquired thanks to the safemoon!

And, the figures speak for themselves: more than a million users (1,272,000 to be precise) have safemoon in the wallet and it is only April, when we write this article.

Yes, what is being said in the forums is that the price of the token will reach the moon as they say in the industry.

Besides, with a name like that, this was wanted by the developers, you will tell me. To even believe that this was only the desired goal? In fact, even if there is a certain enthusiasm for this token, it is good to (always) question the foundation of the token. Always.

Although you can respond by saying that dogecoin has no serious foundation and that doesn't stop it from skyrocketing. That said, we will tell you that dogecoin has managed to have a strong community around very strong philanthropic value. No crypto community can boast of being so supportive and generous to the members of its community.

So take the Dogecoin as a counterexample is ultimately not as relevant as one might think.

In short, let's get back to business and take a closer look at what's going on with the famous Safemoon. What is this? Is it really the token to invest in to get rich tomorrow?

Here we reveal our modest research.

So, what is Safemoon?

If we rely on the official SafeMoon website, we learn that the market capitalization has already reached $3 billion.

So, well, clearly, safemoon is a protocol in decentralized finance. Its particularity is that it pushes holders to hodl their tokens. Basically, there are penalties for those who sell their token. Transaction fees for sales are 10%. Yes, it's huge and it's unheard of.

This is a clear incentive to keep your tokens warm. The 10% penalty is, you should know, half of it is paid to the holders of the safemoon tokens.

But the founders went even further in their business model. For each exchange, there is a 5% commission which is automatically deducted and redistributed to safemoon holders.

Do you see the principle and its consequences? Well, safemoon holders then constantly see their wallet grow. The more transactions, the more the holders earn.

Even better! There is another 5% that is taken from transactions and is redistributed to liquidity pools on PancakeSwap. Yes, I know, now you understand better the recent rise of the CAKE token. Yes! And, also, you understand better why investors flocked to Safemoon.

We can't blame them for the fact that it's a really ingenious idea...It creates wealth in a mechanical and automatic way.

The more new entrants there are, the more holders have a larger portfolio. And the more it makes other people want to invest and buy safemoon.

It's ingenious! Is this ethical? Is it reliable in the long term, we will see that more closely.

Should we really invest in the safemoon?

You know, it's very difficult to go against the tide. Everyone is talking about the safemoon and we have just seen that their business model is deceitful, but it is coherent. It's really well thought out. The token has no real function (pending the supposed development of new functions, eh).

The founders of the project planned with the fundraising of €700,0000 to create their own decentralized exchange. This would be used to exchange NFTs in particular, according to the company's announcements.

So it's not easy to swim against the tide, influencers are talking about it, your friends are pushing you to buy it? In short, this is where you have to exercise discernment, I want to say.

It's a total bull run, the financial markets are doing well, the money is there, and we may have the impression that we can get richer tomorrow (so to speak) with the safemoon.

But, according to the Obelisk company and some research, the safemoon project may not be the next crypto gem….

First, remember that developers own more than half of the LP tokens in pancakeswap liquidity pools. This is a very bad signal as you know. And, it's not the only one. The CEO of SafeMoon John Carony was asked by the community to block its tokens for a period of 4 years. Obviously to calm the enthusiasm, he would have accepted... But, the fact remains that he still owns the majority of the tokens...

We recommend the article published on newsbtc, which mentions the work of YouTuber Lark Davis who draws a parallel between bitconnect (one of the biggest crypto scams) and safemoon.

We advise you the article published on newsbtc, which mentions the work of YouTuber Lark Davis who draws a parallel between bitconnect (one of the biggest crypto scams) and safemoon.

Final word: Again, a magnificent Ponzi or a promising token?

Maybe it's not Ponzi...? What do you think? In any case, even if the business model is ingenious, very clearly, it collapses if no new entrant decides to buy it... So, yes it can make you think of Ponzi indeed.

Madoff is dead but the technique remains.

The only way to remove doubts would be for safemoon to create something viable, innovate in its protocol and correctly redistribute transaction fees.

But hey…The temptations are great to walk away with the money. This is unfortunately something that we have seen again and again in the crypto universe.

It's really a shame for Binance SmartChain...It's still perhaps what we call a rugpull...For a simple definition, it's the act of pulling the rug and in the crypto universe, it's the ultimate evil, it's the act of withdraw the liquidity pool overnight for example…

This discredits the crypto universe and overshadows the best platforms.

The only thing that makes us less suspicious is precisely the fact that there is Binance behind it. They wouldn't let (!) a scam unfold smoothly or they would make sure to pick it up...

If you still want to invest, be careful and keep all of this in mind. It's double or nothing, it seems. And, everything will depend on the goodwill of the developers!

And, you, dear reader, what do you think?

Personally, I again bought the CAKE token and especially BNB, because I am one of those who heard that during the gold rush, those who got very rich were the pickaxe sellers…

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