Altcoin
SafeMoon drops nearly 100% amidst fraud allegations
Posted:
| Last updated: July 31st, 2024
Journalist
- Top executives of SafeMoon have been charged with fraud.
- The token has fallen by almost 100% in less than a week.
There’s still ongoing discussion surrounding SafeMoon [SFM] and the various issues it appears to be facing. Amidst all this, the token appears to be the most severely affected.
Read SafeMoon’s [SFM] Price Prediction 2023-24
SEC charges SafeMoon and executives
On 1 November, the Securities and Exchange Commission (SEC) made an announcement, revealing that it had filed charges of fraud against SafeMoon and its top executives.
The SEC’s allegations include deceiving the public by falsely claiming that funds were locked during the token’s launch. They also accused the executives of engaging in wash trading to create a false impression of trading activity.
Furthermore, the executives were charged with misappropriating funds and spending them extravagantly.
As a result of the revelation that the funds were not locked, the token’s market capitalization plummeted from over $5.7 billion. The official project account acknowledged these recent developments in a post.
How SAFE is the MOON?
If there were any hopes for SafeMoon to make a recovery, the recent developments could potentially mark the final blow. AMBCrypto’s analysis of the daily timeframe chart showed that the token had been on a positive price run.
However, this upward momentum came to an abrupt halt on 1 November.
On that day, the chart reflected a significant drop of 53.71% in the token’s value. Subsequent days didn’t bring any relief, with declines of 28.98% and 21.03% on the following days.
Source: TradingView
Also, at the time of writing, SFM was still on a downward trajectory, experiencing a loss of over 2% in value. Additionally, the persistent selling pressure has pushed the Relative Strength Index (RSI) below 25.
This signaled that the token was in the oversold zone and indicated a strong bearish trend.
How much are 1,10,100 SFMs worth today?
Hackers continue to hold onto funds
SafeMoon had initially experienced an exploit in March, resulting in a significant net loss of $8.9 million. The exploit involved the transfer of 32 billion SFM tokens from SafeMoon’s liquidity pool address to SafeMoon’s deployer address.
This led to an immediate surge in the token’s value, and the exploiter capitalized on this price increase. This was done by swapping a portion of the SFM tokens for Binance Coin [BNB] at an inflated price.
Ultimately, 27,380 BNB were transferred to the hacker’s address. As of press time, these funds have not been successfully recovered.
