12 Things to Consider When Buying SafeMoon
2 min readApr 6, 2021
- Because of the 10% tax on all transactions you need a 23% gain just to break even.
- As part of the 5% “LP Acquisition” tax, the SafeMoon protocol sells 2.5% of each transaction to PancakeSwap, placing constant downward pressure on the price.
- The current market capitalization of SafeMoon is $600M. For a 10x return, SafeMoon would need to be a top 20 cryptocurrency.
- The SafeMoon community sometimes posts misinformation that is left uncorrected. For example, this Reddit post on /r/safemoon, which received over 500 upvotes, claims that “10% of every transaction is taken and half is burned”. This statement is false — there is no 5% burn on transactions, see the SafeMoon whitepaper. So do your own research (DYOR).
- See this Reddit post as well as the SafeMoon team’s response to this Reddit post, during the April 4 AMA (starting at 7:30).
- Try voicing a question or concern in the SafeMoon Discord or Telegram and see what the response is; e.g., ask them about one of my articles.
- The 10% tax on transactions causes price imbalances across exchanges. On its first days of trading on Bitmart and WhiteBit, SafeMoon traded at up to a 40% on-exchange premium. Under normal tokenomics, such differences in price would disappear very quickly due to arbitrage. But for SafeMoon the 40% price difference persisted for hours at a time. Be careful when choosing which exchange to use when buying, or you might end up paying a hefty premium!
- Take a look at the LinkedIn profiles of the SafeMoon team. Is this a team you want to invest in to develop a top cryptocurrency?
- Check out the list of top holders. As of this writing, the top 100 wallets control approximately 50% of the SafeMoon circulating supply, and the top wallet controls 7.7% of the supply.
- Jake Paul tweeted about SafeMoon.
- Note that the SafeMoon contract is a clone of the contract from honey-bee.finance, which is no longer active.
