DeFi Altcoin Rebounds by More Than 92% From Last Week’s Crypto Crash Despite Class-Action Lawsuit
The second version of a crypto whose predecessor is embroiled in lawsuits finds itself defying the odds on the price charts.
SafeMoon (SFM) is the rebranded follow-up to SafeMoon (SAFEMOON), a so-called meme coin that initially skyrocketed after launching to great fanfare due to celebrity hype in March of 2021 before crashing two months later.
The new version of SafeMoon is targeting the decentralized finance (DeFi) space by building its own exchange, which is currently under construction, as well as offering a branded credit card that is accepting pre-launch sign-ups. The SafeMoon wallet is live and can be downloaded from the App Store or Google Play.
According to the project website, SafeMoon is also interested in creating products for the metaverse, commerce and non-fungible tokens (NFTs).
While v2 of SafeMoon moves ahead, the original incarnation is caught up in three class-action lawsuits.
Bloomberg Law reports that the founders of SafeMoon LLC are accused of defrauding investors for hundreds of millions of dollars via artificial price inflation after it was revealed that network transaction fees were not actually locked in liquidity pools as stated.
The U.S. Securities and Exchange Commission (SEC) is also going after SafeMoon for failing to register the crypto asset as a security. Last May then-incoming SEC head Gary Gensler made a point of calling out many cryptos as securities and expressed his intention to regulate the industry.
SafeMoon launched in March of 2021 with a price of $0.000000044360, then skyrocketed to an all-time high of $0.000010943471 in less than two months, before a cascade of controversies brought it back down to earth. After a November rally to $0.00000635, SAFEMOON resumed its decline and is currently worth a mere $0.000000108860.
SFM, which debuted on December 21st of last year, has recovered nicely after the overall crypto market crash last week, with SafeMoon rising 134% from a May 11th low of $0.000282 to its current trading price of $0.000660.
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