Safe Earn Token: Tokenomics, Marketing and Over-reliance on SafeMoon

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Safe Earn Token (SAFEARN) is another DeFi token that we will analyse in depth due to the popularity of decentralized finance (DeFi). While the hype around DeFi has only been much bigger especially during the second half of 2021, this does not mean that the DeFi world is gone. On the contrary, it is still very much alive and full of interesting projects.

One of the most popular projects around Q3 and Q4 of last year in the world of decentralized finance was also Safe Earn Token. What it is, what it brought and how it got more supporters in the initial phases than the extremely popular SafeMoon?

What is Safe Earn Token?

Safe Earn Token was one of DeFi’s most watched tokens around the time of its release last year. It was created on the popular Binance Smart Chain (BSC) and made it to the crypto mainstream mainly thanks to its innovative feature – the double reflection mechanism.

Safe Earn was the first project to offer this feature. The double reflection mechanism or the double reflection token policy was a way to attract attention and increase the potential yield of the holders.

The first “reflection” was for holding the Safe Earn token. However, what was unique about it was that it was paid in SafeMoon token, the more popular and better known token. Thanks to this, the holder not only received the 8.5% of the SafeMoon tokens as the first reflection, but also 5% standard reflection that was given to SafeMoon holders, thus bringing the whole yield to 13.5%.

Thanks to this, as well as the buy back feature, burn policy and being a hyper-deflationary asset, the goal of the team was to keep increasing the price and attracting new investors. However, to prevent any single entity from buying too many coins, Safe Earn has implemented an anti-whale policy. This meant that it was impossible for investors to buy more than 0.1% of the circulating supply, preventing whales from ruining the credibility of the token by centralizing it too much.

Tokenomics of Safe Earn, Source: watcher.guru

Tokenomics of Safe Earn

However, that is not all when it comes to the tokenomics of this token. Except for the double reflection, the tokenomics of Safe Earn also include the following:

  • Buyback: a manual buy back system that is set to a level of 3.5% of all the transactions. This is to spike the price upwards to maintain the momentum and even trigger the rewards.
  • Marketing: Safe Earn has also decided to dedicate 1% of all the transactions to go straight to the marketing wallet and be used in the future with the purpose of spreading the word about the token and supporting its community reach.
  • Slippage: Safe Earn also suggested to its potential buyers that the slippage that they should use on Pancake Swap should be around 15%, although some resources stated that the slippage went as high as 20%.
  • Liquidity: the liquidity pools receive 2% of all the transactions directly.

With this astonishing level of detail at tokenomics breakdown, it is rather surprising that the whole market capitalisation, total supply of tokens or maximum supply of tokens are missing. This is sadly a red flag for the project since these are crucial numbers that are connected to the tokenomics of any cryptocurrency that aspires to be popular, useful and widely used.

Impressive marketing but… missing team?

Safe Earn has had an almost dreamy entrance to the cryptocurrency stage. In less than 3 days after its launch, it gained more than 3,000 holders. When compared to SafeMoon, which needed 10 days to get this many people on board, Safe Earn did exceptionally well.

However, SafeMoon was at one point one of the biggest cryptocurrencies out there, reaching TOP 50 capitalisation and having more than 2.5 million holders, something that Safe Earn can only dream of as of now.

Yet, the project proved that it had some interesting tricks up their sleeve. For instance, the launch of Safe Earn was accompanied by a variety of prices. One of the most eye-watering offers was a 10,000 USDT reward for anyone who would get SafeMoon to mention or acknowledge Safe Earn in its social media. This initiative on its own was able to spark the interest of investors and activity around social media, resulting in a favourable turn for the token.

On the other hand, what is not so favourable for Safe Earn, just like was mentioned previously with cryptocurrencies such as DogePepsi, is the missing team component. Not that staying anonymous is something that is not welcome in the cryptocurrency world, as Satoshi Nakamoto portrayed, yet, the team does not seem to be very engaging as of late, which is hardly a positive sign.

Road map of Safe Earn for 2021, Source: morioh.co

This can already be seen through the outdated Roadmap, which only consists of plans for 2021 and nothing further. Additionally, most of these does not seem to be fulfilled as of now, questioning the credibility and trustworthiness of the team behind the token. 

Over-reliance on SafeMoon

What is also not the best sign is the fact that Safe Earn is extremely dependent on SafeMoon. While the popularity of the latter was staggering at several moments during its history, one can already see that its best times are behind them.

This then immediately translates into problems for Safe Earn, since one of its unique selling points was the double reflection and very high yield, which was completely dependent on SafeMoon. Without it, Safe Earn is but merely yet another token.

Conclusion

A combination of positives as well as negatives of the Safe Earn token can lead to a bit of a bittersweet taste in the mouths of investors. While the token definitely had its ups, it seems that currently it is missing a necessary stability, not only price wise, but mainly activity and community wise. This rarely ends well for projects such as Safe Earn, which is something that the investors or potential investors to this token need to have in mind.

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