The cryptocurrency SafeMoon is currently down more than 34 percent over the last 24 hours to $0.000005, after the token hit a high of around $0.000014 on Tuesday.
It comes after the SafeMoon development team issued an apology following an Ask Me Anything (AMA) session they said was not up to standard.
SafeMoon is a cryptocurrency token that works by issuing a 10 percent fee to those who sell it. Five percent of this is then redistributed as a reward to those who continue to hold onto their SafeMoon tokens. It has risen in popularity in recent days, though it has also faced criticism and concern.
The livestream featured some members of the team at the Miami Crypto Experience, along with distractions and guests who discussed unrelated topics, including a sports car that was present at the event.
One user in the livestream chat wrote: “Can we go back to the questions?” Another said: “Bro get to the stuff that’s actually important.”
Users also took to the SafeMoon subreddit to comment on the AMA. One said: “I’m sure developing relationships with that NFT/Porsche guy is good for long term business collaboration but bringing him out to ramble on during a dev-lead AMA clearly upset a lot of people.”
The SafeMoon official Twitter account later posted: “We apologize for the earlier AMA as it wasn’t up to standard at all and did not meet the expectations we wanted. We will always take your feedback as you are the only reason we are here.”
News from the AMA included that the token is “awfully close” to being listed on the Mandala crypto exchange, according to Chief Technology Officer Thomas Smith, and that there was a $4 billion market cap at the time of the stream. Newsweek has contacted Mandala for comment.
CEO John Karony held an individual stream to discuss topics more clearly, including that a quarter of a billion dollars’ worth of SafeMoon in a liquidity pool has been “locked away”—a move to make the token more secure. He also said the token would be listed on the MXC exchange, which the exchange confirmed on Twitter.
The move followed concern caused by the anti-crypto scam community WarOnRugs, which issued an advisory against SafeMoon on Wednesday. Explaining its reason for the advisory, the WarOnRugs Twitter account wrote the owner of SafeMoon “owns more than 50 percent of the liquidity and refuses to fix it. He could pull [the] liquidity pool and sell tokens, creating a rug pull.”
A rug pull refers to an exit scam in the crypto world, in which a token’s value suddenly plummets. Some high-profile crypto scams include the case of Bitconnect, which Investopedia states led to a loss of around $250 million.
WarOnRugs later said: “54 percent liquidity that was unlocked have been locked”.
Concerns have also come from crypto influencers. Lark Davis, a crypto investor with 221,000 Twitter followers, criticized SafeMoon on Wednesday, writing: “Remember just because you make money off of a ponzi does not change the fact that it is a ponzi.”
Newsweek has contacted SafeMoon CEO John Karony for comment.
Correction 4/22/21 11:45 a.m.: This article has been updated to provide information about the fall in SafeMoon’s price.