No Automatic Liquidity
Compared to most other meme coins, Bobo Cash has no automatic liquidity feature.
If your IQ is below 50, this sounds like a great feature. Unfortunately, this feature will never work as intended.
This is because the automatic liquidity feature behaves effectively as one-sided liquidity, creating more harm than value.
Step 1: Wallet A sends 20trn tokens to Wallet B.
→ Wallet B receives 19trn tokens since 5% got deducted as a liquidity fee for the contract.
Step 2: The token contract now holds 5trn tokens (4trn + 1trn from the transaction) and meets the threshold to sell and add the liquidity via the function.
Step 3: Uniswap requires a 50/50 split for each pool. The contract swaps half of the tokens (2.5trn) for 0.065 ETH and then adds the other half alongside the 0.065 ETH to the liquidity pool.
→ During the swap, 2.5trn tokens join the liquidity pool, while 0.065 ETH gets removed.
(+2.5trn tokens | -0.065 ETH)
→ When adding liquidity, the contract adds 2.5trn tokens and 0.065 ETH.
(+2.5trn tokens | +0.065 ETH)
→ When we combine both transactions, we end up with an addition of 5trn tokens, while the ETH balance stays ~0.
(+5trn tokens | ~0 ETH)
Effectively this is like adding single-sided liquidity. It dilutes the token price with every addition because the ETH ratio stays the same while the token ratio increases.
In projects like Safe Moon, this feature suppressed the price by half. Without this feature, the token would be worth ~2x from what it is now.
Imagine how many more girlfriends moon bois could have if the contract wouldn't have faulty logic?
The worst part is, this dilution happened within three months. We expect this to be 5x by the end of the year. It will result in a price suppression of more than 80%.
Last updated
