Last weekend, SafeMoon attracted the attention of cryptocurrency investors and enthusiasts after earning more than 99% of its revenue. According to data from CoinMarketCap, on April 20, the token quickly rose to its highest level, and the transaction price was $0.000013.
The DeFi token was created by John Mating to circumvent bank loans and establish a peer-to-peer network. Since its issuance, the token has been a topic in the crypto community because it rewards investors who buy and hold the token.
This is a cryptocurrency on Binance Smart Chain with an initial market value of approximately $50,000. After becoming more and more popular on TikTok, the price and market value of SafeMoon have become parabolic.
In just three weeks, coin An increase of 2,200%. Not before.
The parabolic rally soon ended with a fierce end on Thursday morning, when the digital token lost a shocking value.Token lost In just one hour, its market value reached two-thirds, falling from a huge amount of US$0.000015 to US$0.000005.
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The anonymous cryptocurrency analyst The Cryptonomist pointed to Twitter’s decline:
Status of $SAFEMOON😬 pic.twitter.com/0F1uYKbD0B
-Cryptographer (@Thecryptomist) April 22, 2021
The team behind SafeMoon seems to have acknowledged the plunge.The official Twitter account of the agreement Wrote: “Who said there will be no turbulence,” he added, investors should continue to hold. Many investors seemed to be positive about the comment and sent a booster rocket to infer that their sentiment would continue.
Since then, the price of SafeMoon has risen slightly from CoinMarketCap to $0.00000504 per data.
This definitely doesn't look safe for liftoff | Source: SAFEMOONBNB on TradingView.com
The Governor’s competitor or UnSafeMoon?
Although the liquidity is relatively high compared to other tokens that are not listed on major exchanges, traders still emphasize the huge volatility of SafeMoon. Like DOGE, the newly issued token has a fully diluted market value of $4.3 billion and hopes to “push its value to the moon.”
Keep in mind that the SafeMoon team announced earlier that the Asian Exchange required the agreement to be listed on its platform.team Say:
“SAFEMOON is currently overwhelmed by a large number of exchange offers, and a large Asian exchange is about to be announced… This will enable the Asian community to acquire Safemoon, which has a 24-hour trading volume of US$857 million, which is the 36th largest in the world. Exchange.”
Many analysts agree with the point that SafeMoon cannot sustain a bull market rally.
The famous cryptocurrency trader Luke Martin also described the token’s price trend as “unSAFEMOON” after falling 65% in a short period of time on April 22.
Unsafe days pic.twitter.com/A5w4Y4v6U4
-Luke Martin (@VentureCoinist) April 21, 2021
In fact, many financial analysts have warned against buying this financial instrument. coin. It is said that the unsustainability of the bull market rally will cause the tokens to fall sharply on the exchange.
Laith Khalaf, financial analyst at investment company AJ Bell Admonish Cryptocurrency users who wish to purchase newly launched tokens may take risks.He pointed out that the buying drive comes from speculative traders who want to profit from price increases rather than using coin As a means of communication.
At present, it is unclear whether SafeMoon is really safe or as a pyramid scheme to cover up tokens. However, like all digital assets, there are many inherent risks.
Featured image from Pixabay, Charts from TradingView.com