Looks can be deceiving on common crypto market trackers, which lends the question: what am I actually seeing?
New ATH for Safemoon Coin?
Upon the migration of its token from V1 to V2, the Safemoon Coin has reached a new all-time high, according to CoinGecko and other tokenomics sites. This however may not be as clear cut when we take a closer look.
A quick look at several sites that list token prices on Binance Smart Chain and the Safemoon token reached an all-time high of $0.00333 on January 1. An unsuspecting user might believe this to be a great milestone coming on the back of the migration, like a tsunami of token pressure.
However, the Safemoon Coin’s recent migration exposes a common misunderstanding in crypto tokenomics. Due to a consolidation ratio of 1000:1, the true all-time high of the token will not arrive until $0.01399. This is still over 380% off the all-time high at writing.
The difficulty in finding true, real-time data is becoming increasingly difficult. You author could only find one website, LiveCoinWatch, which had a disclaimer about the recent migration ratio. Popular sites like CoinMarketCap or DappRadar are not even tracking the data sufficiently. The Safemoon website and consolidation exchange does not even have a message reminding users.
The common misconception even led to a Reddit post on the Safemoon subreddit that received over 1000 upvotes and was a top post of the week. The post includes a screenshot for the common DEX PooCoin, which again shows no disclaimer.
The top comment in the thread refers to the modesty of the Safemoon user-base about the all-time high. This string of events exemplifies an almost sheep-like response to the post. Only further down does one find a post commenting about the real all-time high, which sadly does not provide an explanation.
More needs to be done about reporting better data. The problem here is that sites like CoinGecko, which are reporting the data, are not reporting it inaccurately. It just doesn’t tell the whole picture or the real value behind the coin. The ongoing event is a reminder that looks can truly be deceiving and it is always smart to do your own research!
What is SafeMoon?
SafeMoon is a new altcoin launched in March 2021. It runs on the Binance Smart Chain and is a Decentralized Finance (DeFi) community-driven protocol. This protocol slightly differs from other protocols when a transaction takes place. Three functions will occur, reflection, liquidity pool (LP) acquisition, and burn. It also charges 10% fees to anyone that sells their tokens, and other owners get 5% of the fees. This is SafeMoon’s method of encouraging holders to hodl and disincentivizing sellers from selling.
Source: BSC News
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