Chris Curl,
Editor
Nov. 2, 2021
Editor’s Note: We’re gearing up for our $50,000 real money crypto challenge. We’re going to put real money to work in the crypto market and publish our research and moves via a new crypto research product called Crypto Cycle. It’ll be led by Chris Curl, who I introduced you to yesterday. Our crypto coverage continues today with what Chris thinks could be one of the next “memecoins” to surge.
Enjoy,
—Nick
Let’s face it…the kids have taken over and we now live in a world of memes.
Shiba Inu ($SHIB) is a cryptocurrency on the Ethereum blockchain that was created with the intent of defeating the reigning “memecoin” of the day: Dogecoin ($DOGE). On October 27th, Shiba Inu even surpassed Dogecoin’s market cap — reaching over $38 billion.
Shiba Inu really started taking off after October 18th when Elon Musk tweeted a somewhat cryptic ASCII art drawing depicting a dog riding on a rocket. Also, Coinbase listed Shiba Inu on its exchange back in September, which allowed casual retail investors to easily buy and sell the coin.Trading volume was recently so heavy in late October that Coinbase crashed trying to fulfill all the orders for $SHIB.
Dogecoin fought back heroically, surging over 30% on October 28th. I had just published an article telling people to buy Dogecoin the previous day. People who followed my advice would have made 30% gains in mere hours!
In this surreal “crypto economy” of memes, simply investing in anything related to an Elon Musk tweet can generate huge returns.
But there are some cryptocurrencies that aren’t on Elon’s radar with similar meme potential.
One such coin is Safemoon. Launched back in March on the Binance Smart Chain, Safemoon sought to fix a huge issue in the crypto space: pump and dump scams.
It’s common for a new cryptocurrency to crop up and get promoted heavily on social media… driving its price up massively in a speculative frenzy only to have all the early buyers —called whales — dump their massive coin holdings for huge gains. This sadly leaves the smaller investors who jumped in on the hype left holding the bag.
Safemoon sought to correct this by implementing a brilliant “tokenomics” strategy. Every time Safemoon is bought or sold there is a 10% fee applied. 2.5% of that fee goes to development and marketing, the other 2.5% goes to a liquidity pool, and the other 5% is distributed back to the existing holders. This makes the coin deflationary and also disincentivizes whales from dumping all of their coins at once. This serves to stabilize the price of Safemoon.
This novel tokenomics strategy gained the attention of investors. Safemoon was promoted on TikTok and soon began going viral. Safemoon exploded in value back in April, multiplying 12x in a single week. Celebrity endorsements rolled in and everyone from rappers to NBA players were trying to figure out how to buy it.
But Safemoon was not completely immune to whales as many of them holding trillions of coins started cashing out for huge profits. This sent the price of the coin down and caused more selling pressure. Safemoon had a massive correction and although it spiked back up in May, it hasn’t been able to reclaim its all-time high.
However, after months of mostly downward price movement, Safemoon appears ready to make a comeback. There are many reasons for this. The first is the release of the Safemoon Wallet back in September. This crypto wallet lets you hold, buy and sell Safemoon and other cryptocurrencies. They are also developing their own exchange which will integrate their tokenomics into every cryptocurrency you hold (called ‘Cryptonomics’).
Also, most of the large whales have already cashed out, which means there shouldn’t be many massive drops in price going forward.
Safemoon is positioning itself as a real company — buying office space, working with the government of Gambia, and investing in the green energy revolution utilizing wind turbines.
And with a current price of $0.000004, it’s probably just getting started.
Learn more at www.safemoon.net.
Keep showing up,
Chris Curl
Editor, Crypto Cycle