The Truth About SAFEMOON COIN
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I'm very lucky to have a voice in a platform here on Crypto4whales.com to express my ideas and thoughts about personal finance, investing and money, because, like it or not, money dictates the direction of our lives. But one of the things that I'm most proud of having accomplished here on YouTube is not the financial success or the million subscribers that I got. But it's how I got here because I never wanted to tear other people down. I've never wanted to leverage other people who are more successful, more talented, more relevant than me for the sake of my own gain, even when I personally believe that sometimes maybe those people deserve a little bit of criticism because they're doing something sketchy and I could make some views.
But I've never done that, and I never will, because I generally believe that if you have nothing good to say, you probably shouldn't say it. That's true in finance and that's true in life. And I would rather take my time and spend that time showing people a better path and a better way of investing, rather than taking that time to tear their ideas and their beliefs down, because that's a waste of time. And I don't want to be the moral arbiter of truth. That's just not my place.
But I do think that sometimes exceptions can be made, especially in the world of finance, where when I blogs videos about the stock market and dividend investing in 7% per year returns, it's like seven that I can make 737 in the last seven days. That's way more exciting. Right? So at the end of the day, I want every crypto project to succeed. I want everyone to make money because if Crypto wins, we all win. But sometimes and this is why I'm making this blog
I think it's important to think with logic and reason rather than emotion. When we see projects that are Super exciting, we get too carried away and we invest with the motion. Take it from the dude who bought coin base on day one. So I'm not taking the intellectual high ground here. So anyway, hopefully we figure it out together along the way and figure out what Safe Moon Coin is all about. So Let's begin. Hi. My name is Saad. I hope you're doing well. Come for the finance and stay for the crypto marketcap
Thank you so much for whoever sent me this. I love this thing. Let's talk about SafeMoon Coin. So why is it popping off? Why is it going up in price? The truth is, nobody knows why. There are so many other crypto projects that are very similar to it. But it's this one that happened to be popping off. And one of the theories behind it is because the name sounds cool. Safe Moon sounds like we're going to the moon.
We're getting there safely. Sign me up, Scotty. People have made tens of thousands of dollars and since launch, which was just on March eight th, a month and a half later. And they now have over a million unique wallet addresses. And a million people can't be wrong. Right? They already have a 4,000,000,000 dollar valuation, which means they are now more valuable than Red Robin restaurants, GoPro and Star Trek Inc combined. Which is crazy because I've never heard of Star Trek in. They'd better be making star ships with a name like that.
It's a real company. But one of the most basic questions that you should ask yourself about a project is what is it trying to solve? What is the product? So for SafeMoon, their product is something called tokenomics. And Here's what that is. Tokenomics is just a fancy way of saying token economics, which is just a fancy way of saying what is the incentive for holding on the coin? And they've come up with a pretty interesting solution that really discourages people from selling and it kind of punishes
so anytime you transact or anytime you sell your SafeMoon coins, then you get hit with a 10% penalty fee. So Let's say you sell 100 dollars of Safe Mont coin. Well, 10 dollars of that money is going to go towards the network fee, of which 50% or five dollars in this case is going to get distributed amongst the network to all the other people who hold the coin in proportion to the amount of coins they hold. So obviously, the more coins you have, the more of those fees you will collect.
So this obviously incentivizes people to hold. Now, the other half of of that 10 dollars or five dollars is going to get split 50, 50. Again, what do you mean, cryptos complicated. It's totally not so 250 of that goes towards BNB, which is Binance , which is an exchange, and the other 250 goes towards a liquidity pool, which is just a fancy way of saying it's what allows people to buy and sell and move and transfer their money in and out of these kinds of tokens relatively quickly.
So that gets added towards a BNB/SafeMoon pair on the Pancake swap exchange. Fancy words. But the gist of it is that you are discouraged once you're in that ecosystem to move your money anywhere else, because once you do that 10% fee means that you're essentially giving money to everybody else. So that's the product the excitement of tokenomics, which promises to make you rich for holding. But all right, that's fine. So what is this product trying to solve? That's the most important question. And at its core, what it's trying to solve is I'm still trying to figure it out.
But based on my understanding, what is trying to solve is it's trying to make rewarding tokens more fairly, which doesn't make much sense because it'll never be fair because the earlier you got in, the more tokens you have. And even though that 10% fee gets distributed to everybody on the network, it's the people that got in earliest and the people with the most coins that get disproportionally rewarded. And that means the early adopters. " But, saad, you're an idiot. Read the white paper. It says they're gonna do video games and charity and solve liquidity problems " .
Oopa 😂 this is true. Promises will always be made in the crypto space. But even if the device developers follow through with the roadmap, think about it like this, when you create a deflationary currency that is so deflationary, and you could argue and say that Bitcoin is also deflationary, but not to this degree, where you essentially punish people for using that currency, a 10% fee, then you are creating disincentives for any kind of real world use cases. Right? Because why would I use this currency? Unless the product behind the currency is extremely cool.
But if there is none encouraging people to hold and you're encouraging more people to invite their friends to join to also hold with you. And if you could imagine a diagram of what that looks like, it kind of begins to look like users join the latest Illuminati Club tokenomics to this extreme creates holding incentives, not real world use case incentives and therefore less utility. " Saad, you're an idiot. You just described Bitcoin " .
😂 So it's true. A lot of people criticize Bitcoin of the exact same thing. It doesn't have utility.
How is it different than Safe Moon coin if the whole thing is about buying it only to turn around and sell it to somebody else for more money? That's called the Greater Fool theory in Bitcoin is a bad current C, right? It's too slow and it's too expensive. So what is it actually trying to solve? So the difference is that Bitcoin is trying to democratize the power of money, and money is influence. That power has historically belonged to the governments of the world. And Bitcoin is democratizing and distributing that power to everyone else.
That is a big solution to a very big world problem that very few other crypto projects can say that they're trying to solve. So if you're safe moon coin and you're trying to compete and stand out against all the other thousands of coins, how do you do it? Here's how marketing, because there's nothing more that small crypto projects love than to pair with finance. Because one of the ways to get your crypto project listed on Binance, which, by the way, is the largest crypto exchange in the world, is to get voted in.
But another lesserknown way is to pay money a lot of money. And as soon as you do and when you get listed, you get access to a whole new group of customers that will push your project into the stratosphere and make you thousands of percent. And that's because it just doesn't take that much s money to move your project in the first place, because it's still relatively small. And even the promise of getting your project listed somewhere like that hypes up the project even more, which creates more publicity and more marketing fuel to get more people excited.
And sure, in the short term, a lot of people can make a lot of money. But in the long term, most of that money will be made by the developers. And, by the way, also almost always 10 steps ahead of everybody else. So Besides selling promises, you you have to have something more. And what's more valuable than selling promises? It's this selling money. And that's what tokenomics without utility is it's the promise to get a lot of money in exchange for a little bit of money?
Because if I promised to give you a 100 dollar bill in exchange for your five, why wouldn't you want to do that? Of course you do that. And when you combine extreme tokenomics with a massive supply...
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