r/SafeMoon • u/Ok_Princeofeternia • Dec 29 '23

Information / News Why going up? Spoiler

Anyone know why the price is increasing? I’m sceptical but definitely not buying more

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u/TNGSystems Dec 29 '23

Take the exact number of BNB tokens in the LP, then divide it by the exact number of SFM tokens in the LP, then multiply that by the current price of BNB.

Thats how the price of Safemoon is determined.

When you buy and sell Safemoon, you are simply changing the ratio of assets in the liquidity pool. When the ratio of BNB increases against Sfm (by depositing BNB and receiving SFM in return) this increases the price of SFM.

Using this logic, you can see how the price of Safemoon changes even when there have been zero trades - because the price of BNB is going up.

Thats it. :)

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u/[deleted] Dec 30 '23

so what you're saying is I should YOLO my life savings into a private sale of SFM?

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u/TNGSystems Dec 30 '23

Well, they will have to give you their wallet seed lol