High Burn Tokens, What is going on now?
Lets start this off with the formalities, I AM NOT A FINANCIAL ADVISOR. Do your own diligent research.
Now if you haven’t been on reddit, a breading ground now of questionable things you might wanna give it a visit you might learn something.
Now do we all remember Safemoon? Or when Dave Portnoy dubbed it the best “SHIT TOKEN “ skip to about 3 minutes in. So Safemoon, what is it exactly?
“The key concept behind Safemoon is a fee for selling it. If you sell your Safemoon, you must pay a 10% fee. That 10% is distributed as follows:
- 5% is redistributed to existing holders
- 5% is split equally, with half being converted to Binance Coin (BNB) and half remaining Safemoon tokens, then pairing them for use in a liquidity pool
According to Safemoon’s team and its fans, this fee will encourage people to stick with it instead of feeling pressured to sell. However, an audit by security platform CertiK found what it classified as a major issue here. An owner address will acquire the liquidity pool tokens generated by the Safemoon-BNB pool. This gives the owner control over tokens funded by Safemoon’s seller fee.
“The design of Safemoon is intended to encourage holding onto it and to drive the price up. There’s one thing we haven’t gone over, which is what Safemoon actually does. And that’s one of the biggest problems.
Safemoon doesn’t do anything.
Its entire purpose is getting people to buy, and the selling point is that hopefully the price will skyrocket. “Per NASDAQ
Safemoon does claim to be making a platform and a wallet but there isn’t much light considering the recent movements.
There Are many of project like this including SHIBARISE
For their own website:
“Our lead developer is American and created SHIBA RISE out of spite for all the rug pulls and honey pots that are plaguing the networks. From a legal stand point our developer is doxed and is bound to follow the laws. He saw a major problem and decided to work towards solutions by providing a scam free token with goals to provide the utilities to avoid scams and prosper with real projects. “
However no where on their website does it reflect exactly how they plan to address the problem of scams in the crypto DEFI space. Now Seeing as there is no mention of using the coin in a productive manner on their “platform” shows either ill planning or just a blatant miss.
Now there is a mass amount of tokens like this with high burn rates some in total of 18%. These methods of inflation control is a prime example of communism, utterly wreck everything for the “community” when in retrospect unless you have tens of thousands of dollars to sink into these coins your gains will be exceptionally miniscule considering the burn rate. If the token has 10% burn rate you need to make a net gain after swap fee’s / pool fee’s excess 10% to see any real profit margin. If you went in and the rug pulled you and say you lost 30% from the price, in total you probably lost 45% after fees and burn.
A common theme for these coins is the way they advertise to ill informed individuals or those naïve to think the project is real.
As you see these post have a lot of buzzwords such as NFT, Charting, Staking, and Swapping. These coins are all named in relation to Doge Coin, Elon Musk (yes seriously) and Shiba Inu. This is just another wave in scam coins, previous to this we had “some weird wrap for bitcoin or another prominent coin” when 99.98 of them where just simple contracts selling minted coins with buzzwords on DEFI exchanges like UNISWAP or PANCAKESWAP. The scammers are just getting more creative with their contracts.
Granted we still have a lot of shitcoins that are basic contracts with no use case. Remember when looking into a coin or token look into the company and what they are actually doin, does the coin or token have an obvious use case, and mainly. Be smart and use logic, if the flow of the token pitch (like demonstrated above) doesn’t fit with the use case or narrative; its more then likely a scam.
