- A class-action lawsuit was filed against SafeMoon and its promoters, alleging false and misleading statements made to investors.
- The lawsuit alleges celebrity endorsements inflated market demand and pumped SafeMoon prices before investors dumped them.
- Analysts believe SafeMoon downtrend is not over yet, and predict more pain for bulls.
SafeMoon project and its promoters have been hit with a class-action lawsuit criticizing an alleged pump and dump strategy by promoters. SafeMoon price has posted 22% losses over the past week, and analysts predict the downtrend will continue.
SafeMoon price suffers bloodbath, bulls could suffer more pain
A class-action lawsuit was filed against SafeMoon on February 17, 2022. Following the lawsuit, SafeMoon price suffered a massive drop, posting 22.7% gains over the past week. The case alleges promoters of misleading traders and selling SafeMoon tokens to unsuspecting investors in a “pump and dump” scheme.
The suit alleges that SafeMoon’s promoters used celebrity endorsements to inflate the price of the underlying asset. Once SafeMoon price was inflated in response to a celebrity endorsement, promoters dumped their holdings on unsuspecting investors, misleading them in the process.
John Karony, CEO of SafeMoon, Jack Haines-Davies, COO, Ryan Arriaga, Global Head of Products, and Shaun Witriol, Henry Wyatt from the team are the defendants in the lawsuit.
Celebrities involved in the litigation process are YouTuber Jake Paul, Ben Phillips, and rapper Soulja Boy.
Proponents believe that the lawsuit is one of the key factors negatively influencing SafeMoon price. FXStreet analysts evaluated the SafeMoon price trend and noted it halted the bullish breakout. Analysts identified a broken neckline in the Head & Shoulders pattern after support failed. SafeMoon price is falling back to lows of $0.0014.
Analysts have predicted a choppy trend in SafeMoon price and capped downside movement at $0.0009.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
VanEck sees Bitcoin reaching $61 trillion market cap, Marathon buys $100 million BTC
Bitcoin declined by 1% on Thursday following asset manager VanEck's forecast that the top digital asset will reach a $61 trillion market capitalization by 2050.
Ethereum Classic price sets for a rally following retest of key support
ETC edges higher by 2.3% and trades around $22.60 at the time of writing on Friday after testing a key support area the day before. On-chain data showing increased account growth suggests a bullish move ahead. Ethereum Classic price faced rejection by the daily resistance level of $25.13 earlier this week.
Celebrity meme coins lose their shine
Celebrity meme coins report by Jupiter Slorg on Thursday shows that these tokens have been in deep waters since early July after experiencing heavy growth in June. In a recent analysis, Jupiter Slorg revealed that celebrity meme coins are down by an average of 94% from their all-time highs.
Ripple gains 5%, Mark Cuban says Kamala Harris’ nomination could affect SEC lawsuit
Ripple (XRP) made a comeback above key psychological resistance early on Wednesday. Crypto traders are optimistic after the Ethereum Exchange Traded Fund (ETF) launch. Entrepreneur and investor Mark Cuban recently shared his comments on how Kamala Harris’ nomination to the Presidential elections could influence crypto regulation.
Bitcoin: Will BTC manage to recover from recent market turmoil?
Bitcoin recovers to $67,000 on Friday after finding support around $63,500 a day before. Still, BTC losses over 1.50% on the week as Mt. Gox persists in transferring Bitcoin to exchanges.