Let’s take a closer look

Will Safemoon actually get to the moon? Or it a modern-day pyramid scheme?

Safemoon is catching all kinds of hype for being a deflationary, community-driven Crypto investment.

The core idea is that sellers get hit with a penalty for selling and that penalty gets redistributed to everyone who keeps holding.

The loyal will get rewarded.

But is it a good investment?

Safemoon’s only source of value right now (before they deliver on any promise of an exchange or wallet) is acquiring more ‘Hodlers’.

This is how it works:

• You hold Safemoon.

• More people buy it, reducing the supply.

• The value goes up.

• People sell.

• The value goes down — but you get more tokens as a consolation prize.

It has no ‘use’ other than its promise to give you more tokens as people sell.

If it does continue to increase in value, the last people to jump on Safemoon will have the highest entry price and lowest proportional share of tokens.

They also see less benefit from ‘tokenomics’ because the penalties incurred by sellers get disproportionately given to those holding the most tokens.

There’s no incentive for them to buy-in. It will reach a saturation point.

It’s in this way that, to me, Safemoon feels a bit ‘pyramid-scheme-ish’.

Remember, if you hold an asset that you can’t use, that doesn’t generate passive income — and isn’t guaranteed to increase in value… It’s a liability.

DISCLAIMER: I am not a financial advisor. This is not financial advice. Please don’t buy or sell anything based solely on my opinion.

On April 18th I bought 800million tokens. On April 21st I sold them all after tripling my money. I was lucky.

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