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Editor of this issue | Colin Wu

1. Safemoon's amazing ascent

Safemoon launched BSC on March 8. In just one month, the price has increased by 200 times. That is to say, if you invest 10,000 yuan in Safemoon at any time in March, it will become 200 in mid-April. Ten thousand. So on April 20, Safemoon replaced Dogecoin as the most searched cryptocurrency name on search engines. According to Coingecko data on May 18, Safemoon ranked 42nd, second only to Cake, which was built by Binance, among the BSC projects. Contiune Capital claims that this model has accounted for more than 60% of new projects on the Binance and Huobi ecological chains.

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2. Unique mechanism of Safemoon

According to Safemoon's white paper, when a user sells safemoon, a 10% "exit tax" will be levied, and half of the 10%, that is, 5%, will be distributed equally to all holders, and the other 5% It will be divided into two evenly, one will be sent to the owner of the contract to increase liquidity, and the other half will be destroyed.

This mechanism of Safemoon is largely in line with the concept of cryptocurrency "HODL", that is, to encourage users to get rich by holding currency, but it also means that Safemoon investors must wait for the currency price to rise at least if they want to make a profit. It is only profitable to sell after 10%, and the transaction costs are extremely high. Only continuous newcomers must enter the market, so that this model can be maintained. And after its price falls, it may be more difficult for newcomers to enter the market due to the difficult mechanism of selling.

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3. Safemoon Controversy

1. Theoretically unlimited total amount

Although the current safemoon circulation is 1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000.

2. The founding team holds the majority

The big V @waronrugs with nearly 100,000 fans on Twitter pointed out: More than 50% of Safemoon is held by its founding team, and there is a possibility of running away at any time.

3. Insufficient technical ability

Safemoon’s contract is directly copied from the smart contract RFILIQ on Ethereum. Safemoon not only retains the spelling mistakes of the original contract, but also retains some doubtful issues in the original contract. This also raises questions about the safety of Safemoon.

The model of Safemoon comes from PIG and SAFEMARS on the Ethereum chain. The high popularity led to the continuous downtime of the Matcha Exchange; The Continue Capital article stated that at present, almost the vast majority of BSC and HECO are of this type. There are even a large number of projects with the same name and similar names on the market, making it difficult to distinguish between Li Kui and Li Gui.

More reading reference: https://www.chainnews.com/articles/588792863637.htm