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Is SafeMoon a good investment in 2023?

Is SafeMoon a good investment in 2023?

The value of the decentralized finance (DeFi) token SafeMoon V2 (SFM), a Binance Smart Chain (BSC) token, has begun the year positively, in line with the general crypto market, after facing several scandals in 2022. 

The ecosystem has focused on network development as a possible catalyst for a price rally, such as the V2 upgrade in December 2021. The upgrade aimed to increase the cryptocurrency’s quality, security, and accessibility. 

However, the network has faced several lawsuits accusing the executives, alongside several celebrities who endorsed the coin, of manipulating investors to hold their tokens. While investors were encouraged not to sell, the celebrity influencers reportedly sold their holdings in an alleged “pump and dump” scheme.

In another suit, SafeMoon is accused of illegally selling tokens while failing to label them as securities in line with the Securities and Exchange Commission (SEC) regulations.

SafeMoon price analysis

SFM price analysis shows that, by press time, the token was trading at $0.0002602 with daily gains of about 0.5%. On a year-to-date basis, SafeMoon is up over 7%. 

SafeMoon seven-day price chart. Source: Finbold

The token’s technical analysis is mainly dominated by neutral sentiment. A summary of the daily gauges on TradingView aligns with the ‘neutral’ sentiment at 10, while moving averages are for ‘buy’ at 9. Elsewhere, oscillators are ‘neutral’ at 8.

SafeMoon technical analysis. Source: TradingView

SafeMoon’s investment potential 

Determining the potential of SFM as an investment product is challenging, considering the network controversies over the past year. Notably, if the network experiences stability, it could offer investors confidence and overall belief in the token in 2023.

In the meantime, the asset can leverage the current bull run to convince investors about its original concept of enabling fans to hold, rather than sell, their holdings.

It is worth mentioning that despite the controversies, SafeMoon has yet to achieve any solid real-world use cases. This is an element that can influence the asset’s future price movement.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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