Belgium (CoinChapter.com) — An exciting day for SafeMoon and its community! As one of the most volatile currencies on the market lately, the team can’t answer many questions easily. Some people even refer to the project as an “exit scam”, further indicating how frustrated investors are getting.
Safemoon Is A Rollercoaster
Although many people are drawn to cryptocurrencies because of their innate volatility, there is only so much one should stomach. For SafeMoon and investors in its native token of the same name, the past day has been remarkable. Not necessarily in a good way, as this project’s price curve raises many uncomfortable questions. At one point, it was down by 80% in value yet somehow managed to bounce back before crashing again.
When looking at the price chart, it becomes evident this project is in an extraordinary place. Following the initial pump, its value dropped from $0.000008 to $0.000002 in quick succession. Although the price appears to be rebounding right now, nothing can prevent this from happening again. Even with the 10% penalty when people sell tokens, there are sufficient opportunities for very early investors to cash out with a profit.
Figuring out the reason for this massive price drop is a bit more complicated. The high token supply is not doing anyone any favors, especially when its overall distribution remains a bit confusing. Although 1.1515 million addresses are holding the SAFEMOON token, the entire supply is in circulation already. Even if everything is distributed evenly, every address will hold over 868 million coins. That is an unsustainable ecosystem, even under the best of circumstances.
SafeMoon Exit Scam Rumors Swell
When incidents like these happen, investors and speculators will never show much patience. SafeMoon’s distribution and trading history have upset a lot of people already. For some, this makes them believe the entire project is an exit scam. Those are loaded words that one should never throw around carelessly, yet it is not entirely unexpected either.
When an investment goes down by 80% in value over the span of hours, the logical conclusion is that something is wrong. Whether that is a technical issue or greed, or an exit scam will only become apparent afterward. As the SAFEMOON price is now on the mend again, these discussions will only become more prevalent. Traders and speculators should ask more tough questions concerning this project.
Some users even go as far as drawing parallels between SafeMoon and Bitconnect. Considering how that latter project is one of the biggest scams in crypto history, it is a rather intriguing comparison. However, throwing in every project with weird trading behavior in the same bucket as BitConnect might be a stretch.
Exchanges Remain Undecided
Given the overall trading volume and attention SafeMoon gets, one would expect most exchanges to list this coin very quickly. Such things have happened in the past, yet they seem apprehensive where SAFEMOON is concerned. The asset is listed on six platforms today, which doesn’t seem all that impressive. As most of its volume comes from PancakeSwap, one must wonder if any wash trading is taking place.
Given the overall price performance of this asset, it isn’t hard to see why major platforms remain undecided on this asset. Putting one’s business reputation on the line for a currency that may be a pump-and-dump asset isn’t worth it. This situation can always change in the future, but no major exchange listings should be expected, by the look of things.
While some people may only see the current price recovery as a good thing, SafeMoon remains shrouded in controversy. It has a bizarre supply, a penalty mechanism that will not prevent people from selling large amounts of coins, and is only generating volume on one platform. That platform’s volume is also much higher than any other exchange, making this situation seem even more worrisome.
Whether SafeMoon is a Ponzi Scheme or not remains difficult to determine. The project has generated plenty of controversies already, which may not bode well for the long-term future of this asset. For anyone looking to invest, it is probably best to look elsewhere, as this project has too much controversy surrounding it.
Featured image from Pixabay, Chart From TradingView.com