- Safemoon price has been in a strong bearish breakout lately
- The network has been accused of being a pyramid scheme
The Safemoon price has been under intense pressure in the past few weeks as demand for digital currencies waned. The coin is trading at 0.00066 USDT, which is a few points above this week’s low of 0.00059 USDT. It has fallen by more than 72% from its all-time high, bringing its total market cap to about $383 million, making it the 188th biggest cryptocurrency in the world.
What is Safemoon?
Safemoon is a blockchain project that was launched in the Binance Smart Chain (BSc) network in 2021. The network was launched at the height of the meme coin euphoria. As a result, it has always been associated with other meme tokens like Dogecoin and Shiba Inu.
However, Safemoon has some utility value. For one, the Safemoon Protocol is a platform that provides four main functions. First, for all transactions in the network, 4% is redistributed to all token holders while 3% is added to liquidity. 2% of the tokens are burned while 1% of the are added to the Safemoon Ecosystem Growth Fund.
The developers are also building the Safemoon Exchange that will enable people to buy cryptocurrency. They are also working on a Safemoon card, which is a plastic card that will allow people to buy and spend cash online. The card will charge only 2.5% fee on transactions. These fees will ultimately be returned to SFM holders as described above.
The network has been accused of being a ponzi scheme, an allegation that insiders deny. However, the developers have recently been accused of running a pump and dump scheme while its vice president recently stepped down. The most recent allegations came from Coffeezilla, who has accused the network and its developers. These scandals explain why the Safemoon price has dropped sharply lately.
Safemoon price prediction
The 4H chart shows that the SFM price has been in a downward trend in the past few days. The coin has dropped below the 25-day and 50-day moving averages. Notably, it has formed what looks like a bearish pennant pattern that is shown in black. Therefore, there is a likelihood that the coin’s price will have a bearish breakout as bears target this month’s low at 0.00059 USDT.
