SafeMoon V2’s [SFM] gloomy outlook darkens, will there be a turnaround?
- Buyers’ sentiment for SafeMoon V2 continued to remain unfavorable.
- A lot of the technical indicators had been bearish on SFM with no signal of restoration.
There may be an previous saying which matches, “no matter goes up should come down”. And this dictum is probably essentially the most correct depiction of the journey traced by SafeMoon V2 [SFM] during the last two years or so.
What number of are 1,10,100 SFMs price immediately
The decentralized finance (DeFi) token, which confirmed immense promise on the peak of 2021 bull run, has been going downhill in worth and valuation without end 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, did not infuse a lot life into the asset. On a year-to-date (YTD) foundation, SFM was down greater than 27%.
Supply: CoinMarketCap
Nothing ‘Secure’ 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 throughout the 2021 market frenzy. It noticed hovering valuation and excessive demand from retail traders.
Moreover, the SafeMoon group 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 had been at a loss as quickly as they invested, thus encouraging long-term holding. The proceeds from the tax had been then distributed amongst SFM holders.
Nevertheless, due to the mechanism, the neighborhood criticized the challenge as a Ponzi scheme. This was as a result of it pays early adopters whereas needing an rising quantity of funding to proceed rewarding those that be a part of later.
Moreover, it was one of many first situations of the challenge approaching the radar of crypto watchers. The challenge 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 top of SafeMoon’s issues.
Bitconnect was for a quick second a prime 10 #crypto, the individuals making a living didn’t wish to settle for it was a ponzi, they made each excuse to justify it, and attacked anybody who said the plain.
Then it rug pulled and everybody misplaced huge time. #safemoon isn’t 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 celeb endorsements from musicians Lil’ Yachty and Nick Carter, and YouTuber Logan Paul. These celebrities had 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 info.
In a distinct lawsuit, SafeMoon was charged for promoting tokens with out figuring out them as securities as required by the U.S. Securities and Alternate Fee (SEC).
In April 2022, standard Youtuber Stephen “Coffeezilla” Findeisen launched a video, accusing the highest administration, together with CEO John Karony, of indulging in attainable fraudulent actions. Whereas this was not confirmed within the courts of legislation, it did a good diploma of injury.
The most recent predicament of SafeMoon was an exploit. A hacker used a bug within the good 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 overall quantity, as per a 19 April replace offered by SafeMoon.
Pricey SafeMoon Household.
A 100BNB check was accomplished by the occasion holding the LP funds.
Now we have confirmed with them that the check was profitable.
Subsequent, they are going to return the total 80 p.c of the BNB they maintain to the identical deal with.
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 regarded dicey. Formidable plans of launching a cryptocurrency alternate and its personal blockchain had been pushed again indefinitely.
Whereas the challenge 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 development in unfavorable territory. With none vital community growth 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
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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 Energy 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 unfavorable territory. This added proof to the rising promote stress narrative.
Supply: Buying and selling View SFM/USDT
