Data from CoinMarketCap on Thursday afternoon (14) indicated that the price of SafeMoon (SAFEMOON) consolidated much of what presented itself as a potential truce for bitcoin (BTC), which was trading near $20,300 and up around 2.5%.
Exacerbating the 24-hour high of several decentralized financial (DeFi) tokens, which did not pass double digits, SAFEMOON hit a 24-hour high of around 6800%, although the chart showed a bullish cross of nearly 90 degrees at 9:00 p.m. (13), with the price of SAFEMOON rising from $0.000000004056 to $0.0000005331 after five minutes.
SAFEMOON/USD 24 hour chart. Source: CoinMarketCap
Because the numbers are so small, each decimal place to the left represents a number ten times larger than the previous one. In the case of the cryptocurrency asset, there were two offsets within about five minutes, such that the value was, at that moment, 131.43 times higher than the price of the token before the “burst.” In terms of percentages, the increase at that time was just over 13,000%.
On the other hand, SafeMoon, despite being splashed out on social media in the past by celebrity endorsements and influencers such as rapper Lil Yachty, YouTuber KEEMSTAR and boxer Jake Paul, has ended up with flashy promotions and promises of “safe” riches being consecrated as a form of DeFi. “roller coaster”. So much so, that celebrities are the targets of a lawsuit in the US, accused by investigators of pumping and dumping with SafeMoon.
Doubtful as it may be, the project presents itself as a combination of Reflect Finance (RFI) tokens and an automatic liquidity generation protocol.
Although the name, in the Portuguese translation, refers to a safe way to get to the moon, the protocol expects that every time someone sells a cryptocurrency asset, 5% returns to the existing owners while 5% is burned as a means of increasing scarcity, and the price automatically In practice, this may not be the story.
In April of this year, YouTuber Coffezilla presented, in a 40-minute video, the results of an investigation accusing the developers of Safemoon of diverting millions of dollars from the project to themselves, as reported by Cointelegraph Brasil.
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