12 Things to Consider When Buying SafeMoon

  1. Because of the 10% tax on all transactions you need a 23% gain just to break even.
  2. 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.
  3. The current market capitalization of SafeMoon is $600M. For a 10x return, SafeMoon would need to be a top 20 cryptocurrency.
  4. 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).
  5. 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).
  6. 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.
  7. 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!
  8. 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?
  9. 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.
  10. Jake Paul tweeted about SafeMoon.
  11. Note that the SafeMoon contract is a clone of the contract from honey-bee.finance, which is no longer active.

I analyse cryptocurrencies.