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Safemoon price prediction: Is SFM a buy after the hack?

By:
on Mar 30, 2023
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  • Safemoon made headlines this week after hackers siphoned SFM tokens.
  • They drained about $9 million of funds from a liquidity pool.
  • The platform’s CEO reassured that the tokens were safe.

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Safemoon (SFM/USD) price remained in a consolidation phase even as it made headlines on Wednesday. The SFM token was trading at $0.00020 on Thursday, which was a few points above this week’s low of $0.00019. The price is ~16% below the highest point this week.

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Safemoon hack explained

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One of the biggest cryptocurrency news this week was the Safemoon hack that drained about $9 million tokens on Wednesday. On-chain data shows that many tokens were moved in a single transaction, which saw the hacker steal tokens worth almost $9 million. 

These funds were moved from a Safemoon liiquidty pool, which facilitates transactions in a DeFi ecosystem. In a statement, John Karony, the CEO of Safemoon said that the network was safe and that only one pool was affected. He said:

“We have located the suspected exploit, patched the vulnerability, and are engaging a chain forensics consultant to determine the precise nature and extent of the exploit.”

Safemoon is one of the top cryptocurrencies that became popular in the meme frenzy of 2022. It was popularized by celebrities like Jake Paul, who promoted its high yields. However, over the years, the cryptocurrency has not lived to its hype, with the Safemoon price being about 92% below the highest level on record. Its market cap has plunged to about $114 million.

Safemoon operates in the DeFi industry and has four key roles, including fee reflection, liquidity pool acquisition, token burn, and growth fund. It is also a highly controversial platform, with some analysts, especially Coffeezilla warning that it is a scam. 

Safemoon price prediction

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Safemoon price

SFM chart by TradingView

The daily chart shows that the SFM token has been in a strong bearish trend in the past few months. This decline is mostly because of the broader crypto sell-off, low liquidity, and the fact that it has been accused to be a scam.

The token managed to cross the key support level at $0.00020, the lowest level since December 2022. It has also moved below all moving averages while the MACD has moved below the neutral point. Therefore, there is a likelihood that the sell-off will continue as investors focus on better-performing coins like Bitcoin, Ethereum, and Conflux.

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