SafeMoon (SFM) has seen a remarkable 132% increase over the past month, sparking renewed interest from investors.
With its controversial past including a bankruptcy filing in December 2023 following a token burn exploit that wiped out the Liquidity Pool and the arrest and prosecution of executives, SafeMoon faces a string of uncertainties surrounding its future, with many questioning whether the current price surge can be sustained.
Why is SafeMoon’s price rising?
One of the main catalysts behind SafeMoon’s recent surge is the release of the SafeMoon Wallet, which debuted in Beta in November and has now entered its open Beta stage after a successful closed Beta.
The SafeMoon Wallet, which comes after the VGX Foundation acquired SafeMoon, has been pivotal in attracting fresh interest and driving up the SFM value.
As VGX Foundation works on rebuilding and expanding the SafeMoon ecosystem, with plans for a Centralized Exchange and NFT marketplace, the SafeMoon Wallet is a significant part of its strategy to bring more functionality and accessibility to the SFM token.
By giving users a more tangible, user-friendly way to manage their tokens, the wallet could help increase adoption.
Additionally, the SafeMoon protocol’s deflationary features—like its coin-burning strategy—could provide long-term value for holders by reducing supply, thus theoretically increasing scarcity and potential value.
The wallet’s integration into this broader ecosystem seems to be a driving force behind the recent surge, which accounts for a significant portion of the 132% jump in price over the last 30 days.
Speculation and concerns: Can SafeMoon sustain the surge?
While the launch of new products like the SafeMoon Wallet has fueled speculation that the token could continue rising, there are reasons to be cautious.
The 2021 arrest of SafeMoon’s founders led to significant doubt in the market, and many investors, disillusioned by the events, moved on or failed to even migrate their assets to SafeMoon V2.
However, since mid-November 2024, the token has started to regain attention, particularly with the development of the SafeMoon Wallet.
Source: TradingView
Despite a slight pullback after a surge to a high of $0.00009936, the token currently holds above the 50-Day MA and the 100-Day MA signaling that bulls are still in control.
Yet, some investors are skeptical about the sustainability of this rally.
There’s a strong divide over what is driving the surge.
Some believe that the ongoing token burn and SafeMoon Wallet development are genuinely affecting the price, while others speculate that the rally could be driven by manipulation from the development team or even large whale investors pumping the price.
This creates uncertainty about the long-term viability of SafeMoon’s growth.
Moreover, the controversy surrounding the project’s leadership, coupled with lingering questions about its business model and regulatory challenges, leaves a shadow over its future performance.
As with any investment, anyone considering an investment in SafeMoon (SFM) should proceed with caution and conduct thorough research before making any decisions.
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