The Fall of SafeMoon: Company Files for Bankruptcy
The token of decentralized finance protocol SafeMoon (SFM) has experienced a significant decline of 31% in just five hours after the company filed for bankruptcy. The official filing was made to the United States Bankruptcy Court in the District of Utah, under Chapter 7 bankruptcy, also known as “liquidation bankruptcy.” The filing was made by attorney Mark Rose, with Chief Judge Joel T. Marker assigned to the case.
Bankruptcy Run and Unpaid Wages
A letter purportedly written by the firm’s chief restructuring officer circulated on Reddit, explaining that the bankruptcy run was the reason for the company’s inability to pay employee wages. The letter advised employees to file a claim in the bankruptcy court for their unpaid wages.
Regulatory Troubles and Price Volatility
This latest blow comes shortly after SafeMoon and its key figures were charged by the US securities regulator for violating securities laws. As a result of this news, the cryptocurrency experienced a drop from $0.000065 to $0.000045 over a five-hour period before rebounding back to $0.000061 in just 10 minutes.
Former Supporters Express Frustration
Many former supporters of SafeMoon expressed frustration on Reddit, claiming they had been deceived by the developers. Some even referred to themselves as being “rug-pulled” by SafeMoon.
The Future of SafeMoon
Santiago Melgarejo, a former nonfungible token analyst and sales specialist for SafeMoon, reflected on the warning signs that were present throughout his time at the company. He mentioned instances where employees were abruptly fired despite working without pay for a month.
Hot Take: SafeMoon Faces Bankruptcy and Investor Backlash
The bankruptcy filing by SafeMoon has sent shockwaves through the crypto community. With the token experiencing a significant decline and allegations of fraudulent schemes, the future of SafeMoon looks uncertain. Former supporters are expressing their frustration and disappointment, feeling deceived by the developers. It remains to be seen how SafeMoon will navigate this challenging situation and regain the trust of its investors.
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