Notwithstanding a network update that was supposed to spark greater interest in the currency and drive the price up, the value of the decentralized finance (DeFi) token SafeMoon, an altcoin project on the Binance Smart Chain (BSC), has plummeted.
SafeMoon’s value has dropped by 78.8% from $0.000002285 to $0.000000003635 between January 1, 2022 and June 19. Although it saw some large short-term increases in late March, the SafeMoon price has been trading in a narrow range.
Importantly, the price drop has been linked to the overall state of the bitcoin market. SafeMoon, on the other hand, received the V2 update, which aimed to improve the cryptocurrency’s quality, security, and accessibility while allowing for future advancements and enticing more users.
Moreover, the project’s genuineness has lately been questioned amid suspicions that it is a rug-and-pull scam. YouTuber Stephen Findseisen, a.k.a. Coffeezilla, was the first to bring up some of the charges.
Findseisen allegedly unearthed an alleged pump-and-dump operation by former SafeMoon marketing employee Ben Philips, according to Finbold. The plan reportedly included up to $12 million in money.
Philips is blamed for being optimistic about SafeMoon and encouraging his Twitter followers to buy the dip while selling the coin at an inflated price, making millions of dollars.
When the project faced litigation from investors, SafeMoon Vice President Charles Karony resigned amid mounting criticism surrounding the coin.
As per Karony, the major incentive for abandoning the project was to complete his undergraduate degree. Surprisingly, Karony resigned when a lawsuit was filed against SafeMoon, its senior officers, and celeb supporters.
Regarding the SafeMoon tokens, the defendants are suspected of engaging in a Ponzi-style pump-and-dump operation.
Analysts have warned investors about the possibility of SafeMoon being a hoax before the uproar.
In a separate action, SafeMoon is convicted of unlawfully marketing the tokens by omitting to designate them as securities as required by SEC regulations.