I think we are in the midst of Safemoon collapsing.

I'll get it right out from the start, this post is half Schadenfreude and half disappointment. I also don't own nor ever will own any Safemoon. I've been following it purely out of interest for the cult-like mentality around the project.

What is Safemoon?

Safemoon launched in the first quarter of this year, with a copy-paste code from BEE token that they changed some parameters to allow the "tokenomics" (A phrase popularised around this time period)

In that time, it absolutely exploded in popularity with a very aggressive marketing campaign centred around onboarding new users.

To all crypto-vets, especially those around the Bitconnect time, there were a number of alarming red flags.

"Tokenomics"?

So as far as I understand, all transactions are effectively taxed 10% as a punitive measure against selling. 5% is burned, 2.5% is sent to a liquidity pool and 2.5% are sent to all holders, proportionally based on their holdings, as reflections

In a nutshell, this can be boiled down to "Get excited about 0.03% portfolio quantity gain, while the price tanks 15%"

A ponzi scheme is defined as one where investors are promised continual and easy appreciation on their investment which relies on a constant onboarding of new users.

Of course, it's easy to pretend like this applies to all Cryptos, but the crucial difference is what makes a ponzi a ponzi, is promising appreciation in investment - "SAFE" "MOON" and an aggressive strategy to bring in new investors.

So what's happening?

After an admittedly impressive start fueled by the insane Dogecoin gains and the flooding of the shitcoin market after, Safemoon has been on a reliable downward trend for well over a month, seemingly totally decoupled from Bitcoin - when BTC goes up, Safemoon goes down. When BTC is stagnant, Safemoon goes down. When BTC goes down, Safemoon goes down.. you get the idea.

On Saturday, the top Safemoon whale sold 2.4 Trillion tokens. That number is ridiculous. Let me write it out - 2,400,000,000,000. This caused the price to tank by 18% almost straight away.

Unfortunately, the Safemoon faithful with their general inexperience in the Crypto Market decided to "Buy the dip", not realizing it's the start of a crash, and have just bought the dead-cat bounce before it's dropped further still.

At time of writing, Safemoon is worth $0.00000222, when a few days before it was nearing $0.00000300 - and the trend line is looking terminal.

If you go to the Safemoon sub (on NP mode, please) and sort by controversial you can see the scale of the damage:

We are the only crypto that is below 3% down in the last 7 days, and we are 16% down! If you can convince yourself this is healthy for the coin please tell me what you are smoking so I can get on it too.

.

Everyday this looks more and more like a scam

.

Wtf was I thinking dropping 5k into this.

.

I wish I had stopped buying the dips/downs from june.

.

I personally have no faith in safemoon anymore.

It's gonna be hard for them to come back from this. The subreddit has been quite negative for a while, but now it's almost entirely people asking what is going on. Any new investor would rightly question what's up when everyone sounds completely miserable and pissed off.

In a way, I'm disappointed because these were new people to Crypto and their first experience is very bad. It will make it hard for them to trust and invest elsewhere.

But in another way, I could give a fuck. We gave them repeated, intelligent, non-offensive warnings and genuine advice, which was thrown back in our faces time after time.

So, enjoy the ride, whatever side of the fence you sit on. But never go all in on a shitcoin. Ever.