Cryptocurrencies have captured the creativeness of many buyers in recent times, with the promise of excessive returns and decentralized techniques providing an alternative choice to conventional monetary establishments.
Nevertheless, not all crypto belongings have lived as much as the hype. Some have skilled important value will increase, pushed by celebrities and social media communities, solely to say no sharply in worth afterward. One such cryptocurrency is SafeMoon (SAFEMOON) – a token that attracted loads of consideration in 2021 after its meteoric enhance in worth.
After its launch in March 2021, SAFEMOON noticed its value enhance by greater than 2,000% over the course of just some weeks. This whopping development was fueled by a mix of things, together with social media hype, movie star endorsements, and the promise of huge returns.
The cryptocurrency reached its peak in Might 2021, hitting $5.75 billion in market capitalization, in line with CoinMarketCap.
Nevertheless, even then, many specialists and analysts warned that the hype was unsustainable and that the foreign money was overvalued. On the time, crypto investor and analyst Lark Davis in contrast SafeMoon to the Bitconnect ponzi scheme.
The Fall
Not lengthy after hitting its all-time excessive, SAFEMOON’s worth started to say no, Despite the fact that the cryptocurrency market as a complete was experiencing a correction, the crypto token’s value was impacted closely.
In consequence, issues started to emerge in regards to the long-term viability of SafeMoon’s tokenomics system, with some critics arguing that it was unsustainable and that it might in the end result in the foreign money’s downfall.
And that’s precisely what occurred. As of Might 17, SAFEMOON’s market cap is standing at simply $3.57 million, down 99.9% from its document excessive. At press time, the SAFEMOON token was buying and selling at $0.000000006353, down 0.66% on the day.
As well as, there are actually solely 349 holders of SAFEMOON in the meanwhile, in line with Etherscan knowledge, down from almost 3 million throughout the token’s peak, illustrating the venture has a particularly low variety of holders, thus, buyers’ curiosity within the coin is near zero.
SafeMoon V2
Following an improve in December 2021 which aimed to extend the cryptocurrency’s high quality, safety, and accessibility, the decentralized finance (DeFi) SafeMoon V2 (SFM), a Binance Good Chain (BSC) emerged.
The outdated SAFEMOON token, thus, in impact, had been changed by the brand new SFM. Nevertheless, the worth of the brand new token has didn’t take off following the continued scandals, together with a number of lawsuits in opposition to the venture’s executives, in addition to several celebrities who publicly inspired buyers to purchase the cryptocurrency.
On the time of writing, the brand new SFM token was altering arms at $0.0001715, up 10.9% within the earlier 24 hours. Over the previous month, the cryptocurrency continues to be within the pink, down 13.4%.
SafeMoon controversies
Within the wake of SAFEMOON’s unprecedented decline, many crypto buyers who held a place within the token incurred important losses. This led to allegations that the crypto token was simply one other “pump and dump” scheme, promoted by social media influencers.
In truth, it was later revealed that this was really the case. Final 12 months, YouTuber Stephen Findseisen, a.ok.a. Coffeezilla, mentioned that well-liked on-line persona Ben Phillips was a kind of who allegedly participated within the SAFEMOON pump and dump scheme.
Based on Findseisen, Phillips urged his huge follower base on Twitter to “buy the dip,” whereas he was offloading his SAFEMOON holdings at an inflated value, making a revenue of several hundreds of thousands of {dollars}.
One other movie star who confronted such accusations is Barstool Sports activities president Dave Portnoy, who revealed on Twitter that he was being sued for ‘schilling’ SAFEMOON.
What’s subsequent for SafeMoon?
All issues thought of, it must be famous that regardless of controversies, neither SAFEMOON nor SFM have managed to realize robust real-world use circumstances. This is a crucial issue to think about as it could considerably influence the asset’s future value motion.
Nevertheless, meme cash are at all times troublesome to foretell as such cryptocurrencies are extremely delicate to exterior influences like social media, as highlighted by value explosions seen in DOGE, SHIB, and, extra just lately, PEPE.
The put up The rise and fall of SafeMoon: Plunge into the Abyss or Resurrection? appeared first on Brokers.
