Breaking down what a Consolation is and how it is different to a Reverse Split
Consolidation vs Reverse Split
Consolidation is done for the good of the project to continue growth and help the project reach the goals that they have set out.
Reverse Splits is done when a company is about to get delisted from a major exchange such as Nasdaq and they want to bump the price so that they don't get delisted.
Inequities, generally reverse splits happen when a company is about to get delisted from a major exchange such as Nasdaq and they want to bump the price so that they don't get delisted.
In DeFi, CONSOLIDATIONS are kind of the same as a concept but done for different reasons. The general consensus is that it will actually be good for investors and I'd like to take a moment to give you a quick and intuitive run down as to what it is and what it means.
Consider DeFi Consolidation and Reverse splits as chocolate bars. On the inside they are both chocolate, however they are different on the outside. (Outside being the reason as to why they are used)
When they consolidate, they are going to "take zeros away" by decreasing the supply.
In this example, we are going to assume the ratio is 1000:1 (because the community seem to gravitate to that since it makes sense for a compatible BTC trading pair across exchanges so we will use this as the example).
The amount of dollars worth of SafeMoon in your bag, whether 1k or 100k dollars worth of SafeMoon will still be worth that same amount after the migration, See the image above.
You're not losing or gaining purchase power next to your preferred currency or fiat. They are literally just tidying up the numbers; and whatever is in your bag, the amount in dollars will be the same. Only now, the price of each SFM token would be worth 1000x MORE for each token. So... you'll have fewer tokens and the VALUE of all holdings will be the same at the time of the migration.
The reason for this is because You will STILL own the SAME PERCENTAGE of the new SafeMoon v2 supply as you own now. If you owned .002% of all Safemoon today, I have great news for you. When the consolidation is executed, you will STILL own .002% of all SafeMoon's supply.
For more understanding on the benefits of why consolidation is a good thing for SafeMoon, please check: SafeMoon V2 Article (COMING SOON)
Sir Burns 🔥 [the wise]#0001