The Web’s detective, Coffeezilla, faces his most unbelievable adversary but. SafeMoon’s story is so ridiculous that it defies all logic. In his “I Uncovered A Billion-Greenback Fraud” video, Coffeezilla and a gaggle of researchers do their finest to determine precisely what occurred on this curious case. Is SafeMoon a rug pull or is it a misunderstood challenge? Let’s take a look at the proof that the detective collected for us.
To not brag, however Bitcoinist feared all of this from the start. Within the video, you understand everybody concerned is in hassle as quickly as you hear Jonh Karoni, SafeMoon’s CEO. He describes the challenge as, “it’s extra about constructing the long run and constructing a secure future and bringing it now.” What did he say there? Nothing, that´s what. And, in accordance with Coffeezilla, that’s what SafeMoon is.
Coffeezilla Takes Us To SafeMoon’s Starting
Concerning the creator of SafeMoon, Coffeezilla says, “It seems it was a man who believes in Q. His identify is Kyle and little or no is understood about him, aside from he distrusts the federal government and thinks they’re a bunch of criminals.” And SafeMoon’s origin story begins with a call from Kyle, “He decides moving into crypto is the proper strategy to begin redistributing a few of that wealth again to himself”.
After a number of failled initiatives, “Kyle discovered one thing referred to as Bee token” and determined to repeat it. “When Kayle invested in Bee token, he favored that it had a particular property to it. A 5 % tax on each transaction, which was then break up into two elements. Three % was added again to the liquid pool and two % was distributed to all of the holders of Bee, which simply inspired individuals to not promote. You simply held and earn cash, and Kyle favored this concept loads”.
After that, it was time for a fork. “He copied the code and launched it himself, however with a number of adjustments. He raised the tax to 10 %, and he modified the identify to one thing much more catchy. He referred to as it SafeMoon.” That is the place the true story begins. Are we speaking a few villain or a hero, although?
SFM value chart on GateIO | Supply: SFM/USDT on TradingView.com
How SafeMoon Grew to become A Billion-Greenback Firm
The individuals couldn’t resist “the promise of secure, simple cash,” so, SafeMoon was successful like few others. In response to The Ginger, an ex-SafeMoon moderator, “Kyle instructed me that he had no concept that SafeMoon was going to blow up prefer it did”. In response to Coffeezilla, Kyle “was anticipating to be out and in.” What appeared like infinite success modified the plan a bit of bit.
“Kyle employed a bunch of individuals virtually as unqualified as himself. There’s a man, Thomas Smith, who turned the lead developer (…) After “Papa”, a man named John Karony is introduced on because the CEO of SafeMoon, and he seems to be the man within the group challenge that kind of everybody finally ends up hating”.
The SafeMoon token was promoting like hotcakes, and in 2021, it “actually exploded in recognition. That they had billboards throughout the nation. That they had the largest influencers speaking about them.” What may probably go improper? To reply this query, Coffeezila has to find out how the SafeMoon protocol works. The very first thing is to outline what a Liquidity Pool is:
“Each pool mainly has two completely different currencies and the purpose is to supply consumers and sellers a strategy to commerce with out common market makers like Wall Road has. In a liquidity pool the best way it really works is the ratio of your two property determines the worth.”
That’s customary process in DeFi, although. “The important thing innovation of SafeMoon was this concept that each time somebody trades, you simply take 5 % of it as a tax and put it into the liquidity pool and lock that cash up, so SafeMoon the corporate can’t contact it. That manner you understand, as an investor, you possibly can all the time commerce SafeMoon for a good value.” As you would possibly suspect, that didn’t occur.
The challenge’s leaders claimed that rug pulls in SafeMoon have been inconceivable as a result of the liquidity tax is locked up. Nonetheless, because it seems, the challenge that the creators copied was a identified rip-off. “If Bee token may rug pull, meaning the funds of SafeMoon are additionally not locked up, and are additionally probably not secure.” Sadly for everybody concerned, Coffeezilla appears to be proper.
Discover out precisely why within the SafeMoon saga’s subsequent episode. It’s going to be a wild trip.
Featured picture: Coffeezilla screenshot from the video | Charts by TradingView