- Buyers’ sentiment for SafeMoon V2 continued to remain damaging.
- A lot of the technical indicators have been bearish on SFM with no signal of restoration.
There’s an previous saying which works, “no matter goes up should come down”. And this dictum is probably probably the most correct depiction of the journey traced by SafeMoon V2 [SFM] over the past two years or so.
What number of are 1,10,100 SFMs price at this time
The decentralized finance (DeFi) token, which confirmed immense promise on the peak of 2021 bull run, has been going downhill in value and valuation with no sign of ending for its woes.
The V2 improve pushed the coin to its zenith in January 2022. Nevertheless, since then, SFM has shed a whopping 89.79% of its worth till press time, information from CoinMarketCap revealed.
Even the bullish cycle of 2023, which reinvigorated the broader crypto market, didn’t infuse a lot life into the asset. On a year-to-date (YTD) foundation, SFM was down greater than 27%.
Supply: CoinMarketCap
Nothing ‘Protected’ about this journey
SFM, which was launched as a BEP20 token on the BNB Chain, was one of many many crypto belongings that managed to rake within the moolah in the course of the 2021 market frenzy. It noticed hovering valuation and excessive demand from retail traders.
Moreover, the SafeMoon staff adopted a singular tokenomics mannequin whereby, a ten% tax was imposed on every sale of SFM tokens. This technique discouraged traders from promoting as they have been at a loss as quickly as they invested, thus encouraging long-term holding. The proceeds from the tax have been then distributed amongst SFM holders.
Nevertheless, due to the mechanism, the neighborhood criticized the undertaking as a Ponzi scheme. This was as a result of it pays early adopters whereas needing an growing quantity of funding to proceed rewarding those that be a part of later.
Moreover, it was one of many first cases of the undertaking approaching the radar of crypto watchers. The undertaking tried to handle this concern by decreasing the speed to 2% for transactions and wallet-to-wallet transfers in its second iteration, V2. However this was not the tip of SafeMoon’s issues.
Bitconnect was for a short second a high 10 #crypto, the individuals getting cash didn’t wish to settle for it was a ponzi, they made each excuse to justify it, and attacked anybody who acknowledged the plain.
Then it rug pulled and everybody misplaced massive time. #safemoon is not any totally different.
— Lark Davis (@TheCryptoLark) April 21, 2021
Buyers lodge lawsuits
SafeMoon has been on the receiving finish of quite a few lawsuits, accusing the executives, a number of celebrities who endorsed the coin, of manipulating traders to carry their tokens.
A big a part of the social hype round SafeMoon was pushed by movie star endorsements from musicians Lil’ Yachty and Nick Carter, and YouTuber Logan Paul. These celebrities have been later sued by many SafeMoon traders as a part of a class-action lawsuit, for being concerned in a pump and dump scheme by selling the SFM token with deceptive data.
In a special lawsuit, SafeMoon was charged for promoting tokens with out figuring out them as securities as required by the U.S. Securities and Trade Fee (SEC).
In April 2022, common Youtuber Stephen “Coffeezilla” Findeisen launched a video, accusing the highest administration, together with CEO John Karony, of indulging in doable fraudulent actions. Whereas this was not confirmed within the courts of regulation, it did a good diploma of harm.
The most recent predicament of SafeMoon was an exploit. A hacker used a bug within the sensible contracts to deplete the liquidity pool. The assault value Safemoon roughly $9 million price of SFM tokens.
Apparently, the hacker agreed to return 80% of the full quantity, as per a 19 April replace offered by SafeMoon.
Expensive SafeMoon Household.
A 100BNB check was accomplished by the get together holding the LP funds.
We’ve got confirmed with them that the check was profitable.
Subsequent, they’ll return the complete 80 % of the BNB they maintain to the identical handle.
Following this, SafeMoon tokens from a…
— SafeMoon (@safemoon) April 19, 2023
Gloomy outlook
Confronted by challenges from a number of fronts, SafeMoon’s future prospects appeared dicey. Bold plans of launching a cryptocurrency change and its personal blockchain have been pushed again indefinitely.
Whereas the undertaking tried to instill a way of optimism amongst its supporters by offering updates about its blockchain development, the absence of timelines summed up the event exercise on the community.
Even the official Twitter deal with of SafeMoon was boring and offered sporadic updates. This led to a drastic fall in SFM’s social mentions. The metric solely confirmed an uptick when the information of the exploit was revealed.
Buyers’ sentiment continued to pattern in damaging territory. With none vital community improvement or real-world use case to place future bets on, customers mainly shied away from placing their cash right into a troubled asset.
Supply: Santiment
Is your portfolio inexperienced? Take a look at the SafeMoon Revenue Calculator
No signal of restoration
On the time of writing, SFM exchanged arms at $0.0001556, down by 4.18% within the 24-hour interval. The Relative Power Index (RSI) was within the oversold territory, suggesting overtly bearish sentiment for the coin.
The On Stability Quantity (OBV) has been in a free fall since mid-April, as capital continued to maneuver out. The Transferring Common Convergence Divergence (MACD) moved beneath the sign line within the damaging territory. This added proof to the rising promote stress narrative.
Supply: Buying and selling View SFM/USDT
