Safemoon (SFM) dramatically spiked 92% on Saturday and attracted extreme weekend volatility. Its price was hovering around the $0.00035055 mark and jumped to $0.00044436 in a few hours almost doubling in price. After a sudden spurt of 92%, Safemoon’s price plummeted 40% on Sunday falling to $0.00037773 levels again. SFM’s price is down nearly 8% on Monday and the DeFi token seems to be shedding its gains this week.
Why Did Safemoon (SFM) Suddenly Rise 92%
A Safemoon investor previously filed a lawsuit alleging the founders and devs of the token indulged in price manipulation and insider trading. The lawsuit claimed that the founders artificially inflated Safemoon’s price by giving false statements. The investor alleged that SFM founders were unlawfully selling the tokens by failing to register them as securities with the SEC. The plaintiff sued the founders in the Utah Federal Court in May this year.
However, the plaintiff seems to have withdrawn and dropped the lawsuit against Safemoon on Friday last week, Bloomberg reported. The news of the lawsuit being dropped made its way into social media bringing in confidence among the investor community.
Therefore, Safemoon shot up in price on Saturday, just a day after the lawsuit against it was dropped on Friday.
In addition, the lawsuit withdrawal coincided with the Safemoon Orbital Shield Beta announcement that was made on Friday. Safemoon now describes itself as, “A human-focused technology and innovation business expanding blockchain technologies for a brighter tomorrow”.
At press time, Safemoon was trading at $0.00038025 and is down 8% in the 24 hours day trade. SFM is also down 88.8% from its all-time high of $0.00338272, which it reached in January 2022.