The recent #Safemoon hack drained $9ml out of the liquidity pool sending the token crashing and investors tokens rendered worthless. It will all be ok though, John Karony the Safemoon CEO is at the helm.
For anyone who doesn’t know what Safemoon is here is a quick recap. Safemoon is a BSC #token that was launched during the bull market in 2021. It was a copy paste token, meaning they copied the #Safemoon v1 contract from a previous token called the Bee token.
Safemoon promised to revolutionise the space with their #tokenomics, otherwise called a 10% tax. A certain percentage goes back into the liquidity pool, some is burned forever to decrease the ridiculous amount in circulation and some is redistributed to holders. That’s right, people bought in thinking this is a great idea! A 10% tax on all your transactions.
They were supposed to take holders to the moon by promising the liquidity that goes in will be locked, so team members and the CEO John Karony cannot extract from it. With a successful marketing strategy using social media and influencers, lots of holders invested, based on the locked liquidity promise alone. The snowball effect continued and #Safemoon reached $1bn in market cap.
Locked liquidity was a short-lived promise. It lasted months until they quickly changed their tune after realising how much money was going into it. Greed just creeps up on you, doesn’t it?
So they stated that we will need to dip into the pool in order to be able to create the innovative products that they set out. It also included a misspelt operation called Operation Pheonix. This was supposed to be the creation of revolutionary windmills with nanotechnology that will somehow tie into the #Safemoon ecosystem. Absolute garbage. More investors lapped it up though.
#Safemoon also promised to build a #blockchain and centralised exchange which they raised $1ml dollars for right at the start. They were also going to bring this #tokenomic model and make it global. Meaning applying it on their exchange and all other centralised exchanges. The fact that they didn’t have neither the technical or strategic knowledge on how to accomplish this didn’t matter to investors.
They started by creating a crypto wallet that initially showed the coding ineptitude of a high schooler with a calculator that wouldn’t function properly. A copy paste Trust Wallet. The pattern continues. The evolution began.
What happened?
The team started to dismantle one by one including the famous Papa, the developer who was working on the revolutionary #blockchain they were building. We later found out nothing was actually built. This is the stage of crypto scam called take the money and run.
John Karony the CEO stuck around. He blamed the failings of everything #Safemoon was trying to achieve and hadn’t yet on the old team. So he has had a good year and half to make things right.
What has he achieved?
No blockchain, No tokenomics revolution, No exchange. No card. No operation Pheonix. A token change from #Safemoon V1 to the revolutionary V2 contract, including a 100% tax added in for people along the way to discourage arbitrage trading. Where did this 100% tax go into? The liquidity pool of course. Yes, that’s right, theft in a public ledger.
The wallet is still there though. They also have a password and username gated entry into the wallet called Orbital Shield which offers you security. Its so revolutionary, its being rolled out across the whole #crypto ecosystem. There was also more backgrounds and wallpapers during a rebranding. Oh, and I think they even bought their safemoon.com domain.
#Safemoon is a lesson in how centralised incompetence and greed of an ineffective CEO like John Karony works out for investors. John Karony himself has done well since being the CEO of #Safemoon. He has made excellent deals including with the Bitmart exchange that have allowed him to profit, we are talking millions.
Is the recent hack the nail in the coffin?
#Safemoon was hacked on the 28.03.2022 with a burn function being exploited in their most recent update to their token contract. The hacker was able to take advantage of the public burn() function, this function let ANY user burn tokens from ANY other address. Amateur hour continues.
The whole liquidity pool was drained rendering all tokens held by investors worthless. The same liquidity pool that was supposed to be locked in the beginning, kind of ironic.
The fact that this exact same type of exploit has been seen with other tokens did not matter to John and the Safemoon team. Or did it?
Did they know what they were doing? Was this intentionally updated to be exploited? We will never likely find out. It could be the great escape for CEO John Karony though and he sure needs one.
Can #Safemoon survive? Sure, it can. There is still a cult like following devoid of logic in this space who might even buy into it now. Oh wait, I don’t think they can, there’s is nothing in the liquidity pool. They might have to wait, the hacker did say he will return the funds. They also stated at one point that they had insurance on the liquidity pool. We will find out if this was another lie.
Outside the “Safemoon Army” investors will not touch it. Hence why it has never been listed on any major exchanges such as Binance, Coinbase, Kraken etc. Also, the reason why they would not receive investment from venture capitalists. It would be ludicrous to trust #Safemoon and put your money in the hands of John Karony with their track record.
Its reputation in the #crypto space is absolutely and rightfully destroyed. It is seen as a scam, or a slow rug pull. One that will go down in history. Its amateurish incompetence by a hyped-up marketer CEO who has ridden the wave of promise big and deliver rubbish for way too long.
#Safemoon is another lesson why centralisation and #crypto should not mix, that is unless you are the man running the show. I am sure when John he looks back on how much he profited from this two-year charade, it will make sense to him.
DISCLOSURE - This is an opinion piece and not financial advice. Please do your own research before investing or selling any projects mentioned. -
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