Safemooners don’t understand arbitrage, cream their pants when the chart goes up from people profiting off the army [serious]

Arbitrage is a simple concept. If you can buy a token for a low price and then sell it immediately elsewhere for a high price you are arbitraging.

Earlier in the year, Safemoon experimented with cross chain. They basically launched an Ethereum and a MATIC version of the Safemoon token, and then implemented a token bridge so that you can move your tokens across the three chains (BSC, ETH, Polygon).

As you will remember, it resulted in a disaster. Someone exploited the contract and took nearly $9m in BNB out of the Liquidity pool. Since then, the funds were partially recovered, minus a $2m bounty for the exploiter, and this recovered liquidity was split across the three chains.

Safemoon added liquidity to these new chains and purposely set the ratio so that the price was $0.0003 per token. This is problematic as the token was trading at less than $0.0002 on BSC.

What this means is that as soon as the bridge is activated, people could buy the token on BSC, bridge it to ETH/MATIC and immediately sell for a huge profit.

This was further compounded by smooth-brains buying the token in isolation on MATIC and ETH chains. Yes, they were literally buying Safemoon tokens for up to $0.0005 when the same token was trading for less than $0.0002 on BSC.

I have no words.

——

Anyway, yesterday the bridge opened and as predicted, a few outsiders took advantage. They bought tens of thousands of dollars of Safemoon on BSC at the lower price:

https://bscscan.com/tx/0x8414f65a6c6fc2a00473e4b512dc2775729b5a4d1c8fed49ef94ef4a26338b5b

Bridged them to the other chains:

https://bscscan.com/tx/0x66270782e9c3d1b72d7d86a713825ef22c934d172d7cd6c36ef8ef95033a9240

And sold them at the higher price:

https://etherscan.io/tx/0x99663207b3e46538a69108e6895f9a147f41271aaeee099065b6e7ec94c230c0

In this single series of transactions, this person managed to make $2.5k for a couple minutes of work. This was repeated over and over and over.

This of course raised the price of BSC Safemoon by like 20%, which got all the maxis in a tizzy. And now they’ve convinced themselves it’s the start of a new rally.

Except… nothings changed. A token that nobody wants to buy is now available on 3 chains… so what? What does it being cross chain actually do? Nothing.

And evidently, people are now dumping Safemoon again, thankful for the small bump in prices. The price on ETH and MATIC got decimated and the arbitrage bots walk away with handsome profits.

The list of people who have now profited from Safemoon grows:

• Development team
• MEV bot
• Arbitrage bot
  

You won’t find regular Safemoon investors on that list.