Disclaimer: If you are a Safemoon holder, I mean no malice. You do you.

What went down

So, Safemoon was exploited in what may be one of the most significant failures of a cryptocurrency dev team in recent times. Why?

• $8.9 million was drained from the Safemoon liquidity pool (LP), effectively halting the ability for holders to trade Safemoon tokens.
• A flaw in a recent upgrade to Safemoon's smart contract opened a vulnerability through the burn feature, which is the smart contracts functionality for permanently removing tokens from circulation.
• This allowed ANY user to burn Safemoon tokens from ANY wallet. This is permission to destroy anyone else's tokens without access to their seed phrase or private key.
• The 'hacker' used this exploit to burn tokens from the Safemoon liquidity pool, which caused the price of Safemoon tokens to skyrocket. The 'hacker' then sold Safemoon tokens at hugely inflated prices, draining all the available BNB from the liquidity pool.

Source: https://twitter.com/safemoonburned/status/1640866438180110339

Source: https://twitter.com/safemoonburned/status/1640866502730563592

Hurrah, the liquidity pool is insured!

Safemoon has repeatedly stated that its liquidity pool is insured, and many members of the Safemoon army cult are pointing to this as their saving grace. John Karony, the CEO of Safemoon, said this himself in Feb. 2022:

Source: John Karony a.k.a. CPT_HODL_T_MUN. Safemoon Discord. Feb 8, 2022.

Just to clear things up, what exactly is insurance? According to Investopedia:

Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific contingencies and/or perils.

As many of you know, especially in the US, for-profit insurance companies do everything in their power to avoid paying out. They do this by writing very specific contracts that determine what they legally have to or don't have to pay out. Stating that Safemon (the company) is insured doesn't guarantee any sort of reimbursement for the company or, as an extension, the holders.

Does Safemoon's exploit constitute theft? Does it constitute an error on the company's behalf? Are these just normal functions of the contract, protocols, and DEX? All of this would play a factor in reimbursement eligibility. I digress.

To my knowledge, Safemoon has never shared the details of its insurance policy other than vague statements.

None of this matters

Let's say that Safemoon (the company) is fully reimbursed for losses due to the exploit and then somehow reimbursed the bagholders. This means absolutely nothing. Its reputation — if it even had one outside the echo chamber that is the Safemoon army cult — is shoved even further down the proverbial drain. Nobody is getting reimbursed for their investment depreciation at the hands of incompetent "devs" and potential fraudsters. The only people buying Safemoon are people who are being conned by the Safemoon cult.

It's a cesspool of long-term bagholders hoping to con others into buying Safemoon by screaming about it on social media so they can get out of a -99.9% loss. These are bagholders who hope the price will return to its pump n' dump wonder years of... \checks chart*...* April 2021. Zoom out, Safemoon has yet to come close to its all-time high market cap that was achieved in the first month of its existence almost two years ago. A market cap achieved purely on hype and speculation.

A miracle of new hype and speculation will never fix a destroyed reputation, fraud, and the burden of having experienced a catastrophic exploit.

• They have been the subject of multiple class action lawsuits alleging they defrauded investors and artificially manipulated the token.
• Coffeezilla has heavily reported on Safemoon and John Karony, garnering millions of views for exposing scandals and blatant fraud.
• They have also ignored advice from blockchain security firms in the past, such as HashEx.
• A catastrophically exploited vulnerability that rekt the token.

In contrast, imagine if, after SBF was exposed for fraud and mismanagement, FTT holders staunchly stuck by him and the FTT token, defending against any and every negative thing said about SBF.

But don't worry; the DEX is safe.

Source: https://twitter.com/CptHodl/status/1640914110350016512

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Edit: I added a source for John Karony's insurance statement.