Safemoon’s price has fallen more than 96% from its all-time high, and this catastrophic price drop comes after YouTube blogger Coffeezilla unveiled new fraud allegations against SafeMoon’s founder and CEO.
A recently released video alleges that a major token holder (cryptokit) sold four billion Safemoon tokens for nearly $2 million.
Judging by reports on Reddit, the Safemoon community has spent the previous week and a half denying and disputing the claim that the wallets involved in the fraud belonged to Safemoon CEO John Caroni.
Safemoon supporters believe the incoming and outgoing transactions were innocuous transactions that included depositing and removing tokens from liquidity pools and payments from Bitmart.
The screenshot below shows links to two wallets on BSC Scan.
When we combine the transactions for both wallets, we get a figure of about $2 million.
In addition, Coffeezilla found information about another Pump and Dump scheme run by former Safemoon employee Ben Phillips. It is alleged that John Caroni spent $300,000 on tokens to further manipulate the market.
The video also mentioned an NFT project that Caroni liked, and one of the wallets mentioned above is associated with that project. Needless to say, it will not bring its investor big profits.
Now there has been a division in the Safemoon community into two camps, those who agree and those who disagree with the allegations made. Apparently, about half consider the denunciation to be a fake and are waiting for an opportunity to accumulate more coins.