Hey guys it's sasha, so we need to talk about safe moon. In case you haven't heard safe. Moon is a new type of cryptocurrency that launched only a few weeks ago on the 8th of march 2021 and as i'm recording this video safe moon has a market cap of 2.8 billion dollars, that's more than lending club and imax combined, which is bonkers, and yes, Unfortunately, this is a giant ponzi scheme that is designed to attract young people who have not yet seen how ponzi schemes work before so i thought i would explain exactly why it is a ponzi scheme exactly how it works before the inevitable happens. I am fully aware that there are a lot of people out there who are believers and that i will be told that i know nothing.

I understand nothing about this coin and i'm hoping and probably expecting that this video will break my all-time record for the number of dislikes. I completely get it, but if i can help at least one rational person out there understand this a little bit better and save themselves from being an idiot, then i am going to be incredibly happy. So here is what safe moon is. It is a form of cryptocurrency that is different to all the other, popular ones that you may have heard about, like bitcoin and like dodgecoin, because it doesn't have its own blockchain.

It is a token, and this means that it sits on a different blockchain. It's essentially piggybacks onto one. It actually sits on the binance smart chain if you're looking for specifics, you'll notice why this is important in just a minute. The current price of safe moon as i'm recording this video is naught point naught naught not naught not for eight dollars.

Sorry, five zeros before the four eight. So that's roughly two hundred and six thousand safe moon tokens to one us dollar, and this is where people who don't really understand basic maths, get incredibly excited and make youtube videos telling you how cheap it is. It is so cheap. The number is so small right that makes it an amazing, great investment because all over the internet, you will see a flood of people who are investing in safe moon, because the price is cheap, they'll say imagine if that price goes to one dollar, we'll all be Millionaires because you know dodge coin is approaching the one dollar mark.

Why can't this one? Well? Imagine that, because if it ever did go to one dollar, then the total market cap for this particular type of cryptocurrency would be 540 trillion dollars or roughly six times the size of the entire global economy at the moment. So anyway, let me explain to you exactly how this thing works, because that's the really important bit there is one key feature of safe moon that you need to know about, because each time you make a transaction in safe moon, there is a 10 fee. Any type of transaction - and that's right - you heard that right, a 10 fee. So if you send some safe moon from one address to another address, then the exchange, for example, that you bought it from you, move it to your own address somewhere else.

You'll have to pay 10, so if you send 10 of those safe, moons you'll only receive nine at the receiving end. So where does this fee go well? Half of it is redistributed to the holders of safe moon in proportion to the amount of safe moon that they hold. So if you buy safe moon, you categorically do not ever want to actually use it for anything, because if you use it to buy something, you'll have to pay a 10 fee. If you move it somewhere, you're going to have to pay another 10 fee, your only option is to hold on to it and, while you hold on you'll, get small payments made to you through the distributions based on the transaction fees of some of the other people.

Buying and selling it, and while you hold the only reason that the price is going to rise because more people will buy it, hoping to hold on to it themselves and then sell at a higher price, because even more people are going to buy it. That's the whole game. This is literally the definition of what a ponzi scheme is. You buy an asset that is heavily promoted by early adopters and early investors that promises you huge returns, but the only way that you will actually make a return is if new people buy into the same scheme.

So if new people were to stop buying into safe moon, there would suddenly be no growth in price and no redistribution of fees, which would bring the whole game of musical chairs to a very abrupt end, but wait. It gets a whole lot worse than that. Yet you wouldn't believe it, but it really does because the transaction fee, if you remember, is 10 for every transaction using safe moon, but only five percent. Only half of it goes towards this redistribution.

So what might you ask happens to the other five percent? Well, i am going to explain to you half of that extra five percent, so 2.5 is immediately converted into binance coin, a different type of cryptocurrency, the coin, essentially on which blockchain this thing exists. If you like to make it super, simplified uh, it's known as a bnb, the other 2.5 percent is then paired with this newly converted binance coin into a dedicated liquidity pool. Are you getting a little bit confused? Well, that's, okay, because that is exactly the intent of this entire thing. It is so that people don't want to read any further try to understand what is this liquidity pool? Why does it exist and what exactly is it going to be used for? Well, it is meant to sound incredibly sophisticated and science-like, but the truth is the safe moon that goes into the liquidity pool.

Basically, just becomes liquidity pooled tokens and the official reason for the pool's existence is to provide liquidity for transactions on the binance chain and, remember half of that money is sitting in a currency that does not even save moon itself. So if somebody was to say have access to this pool and the whole thing collapsed, they would be left with a different cryptocurrency. That would still be worth something interesting thought there right well. This pool, interestingly, can actually be accessed by the developers of safe moon for any purpose that they choose.

Don't take it from me. The ceo of safe moon, john caroni, said as much on twitter. He literally said users include seeding other exchanges and development costs of future safe moon innovations, so whatever they determine to be development costs they can go and use that pool for any need they deem necessary. So the people who launched this thing just a few weeks ago literally have a wallet where five percent of every transaction made using that currency.

So every time somebody sells it and somebody buys it. Five percent of that money is deposited into that wallet and they can choose to do whatever they want with it. For anyone who was born in the 90s or later look up a chap called bernie madoff, you might be quite interested in exactly what it is that he did the kind of stuff that he got up to the amount of money that he managed to steal. Exactly how he managed to steal it and what happened after his giant ponzi scheme collapsed, because you might find some really interesting similarities.

But here is the best bit about the whole thing. This is the best bit for sure. Safe moon is literally telling you that it is a scam. In fact, i would not be surprised if the people who actually started the thing in the first place did it as some kind of weird joke as an experiment.

Look at its name. What are the two things that every impressionable crypto investor wants in life? They want for their investment to grow, to a million percent to go to the moon as the common expression goes, and they also want for their money to be safe, while they're making their million returns. The name literally combines the two things that everyone wants from their crypto investment into the same name. That is what i want to buy right.

It is a safe thing that will go to the moon, because that is obviously how all investments go. They're super low risk and super high returns. That is the norm. That is what we should all get used to.

Making eight or nine percent per year is for schmucks who invest in companies. Real people with real investment ambitions are here to make millions of percent. Instead. Now, unfortunately, as with all of these things, my video is already too late, because a lot of people have already invested their money into safe mood, and yes, this is not investing just in case you were confused about it.

This is somewhere between gambling and lunacy. You can decide where, in that spectrum it is, you are literally investing in something where the design of the thing is the dictionary definition of a ponzi scheme. The only way you can earn money is by hoping that more people join the scheme so that you can earn money at their expense and when the flow of new people in transaction dries up, the whole game is going to be up. I hope at least somebody found this useful and if you have feel free to go and hit that like button to counter the ridiculous number of dislikes that i know i'm going to get.

Thank you so much for watching this video and, as always i'll see you guys later, you.