SafeMoon V2’s [SFM] gloomy outlook darkens, will there be a turnaround?

• Traders’ sentiment for SafeMoon V2 continued to remain unfavorable.
• Many of the technical indicators had 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 essentially 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 in the present day

The decentralized finance (DeFi) token, which confirmed immense promise on the peak of 2021 bull run, has been going downhill in value and valuation ad infinitum for its woes.

The V2 improve pushed the coin to its zenith in January 2022. Nonetheless, 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%.

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 through the 2021 market frenzy. It noticed hovering valuation and excessive demand from retail traders.

Moreover, the SafeMoon workforce 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.

Nonetheless, due to the mechanism, the group criticized the challenge 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 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 lowering 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 prime 10 #crypto, the folks getting cash didn’t need 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 massive time. #safemoon is not any completely different.

— Lark Davis (@TheCryptoLark) April 21, 2021

Traders 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 superstar 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 Trade Fee (SEC).

In April 2022, in style 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 regulation, it did a good diploma of injury.

The newest predicament of SafeMoon was an exploit. A hacker used a bug within the sensible contracts to deplete the liquidity pool. The assault price Safemoon roughly $9 million price of SFM tokens.

Curiously, the hacker agreed to return 80% of the overall quantity, as per a 19 April replace supplied by SafeMoon.

Pricey SafeMoon Household.

A 100BNB check was accomplished by the occasion holding the LP funds.

We’ve confirmed with them that the check was profitable.

Subsequent, they are going to return the complete 80 % 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 appeared 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 uninteresting and supplied 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.

Traders’ sentiment continued to development in unfavorable territory. With none important 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 fingers 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 Shifting Common Convergence Divergence (MACD) moved under the sign line within the unfavorable territory. This added proof to the rising promote stress narrative.

Supply: Buying and selling View SFM/USDT