SafeMoon has been under the crypto spotlight recently but for all the wrong reasons. Several allegations made against the project have impacted its public image and tanked SFM’s price. However, a Reddit user claims to have busted a recent allegation made by Youtuber Coffeezilla against SafeMoon.
Reddit user JopeSane claims to have busted a misconception regarding how many tokens were lost during the V2 migration event in December. As opposed to Coffeezilla, who declared that SafeMoon holders lost $102 Million worth of tokens while migrating them from the V1 protocol to V2, JopeSane said that the method of calculation was wrong and that the actual amount was far less than what Coffeezilla claimed.
JopeSane, who stated to have contacted Coffeezilla regarding the disparity in findings, said that the actual amount lost during token migration could be lesser than $6 Million. The estimated figure was allegedly calculated through a new method, which included taxed transactions and excluded migrations.
Are other SafeMoon misconceptions also wrong?
Suggesting that the earlier claim was incorrect, JopeSane questioned whether other misconceptions could also be wrong. “But these mistakes were now spread to millions of people and they now have a wrong understanding of things” said JopeSane in a Reddit post.
Forcing all holders to migrate their tokens, the SafeMoon developer team introduced a ‘100% tax’ penalty for those who did not transfer their holdings from the V1 to V2 protocol. This meant that one could essentially lose all SafeMoon funds under the new tax rule.
Several members of the community were against the controversial decision. They claimed that there was not enough disclosure regarding the decision and SafeMoon did not provide sufficient warning to prevent users from mistakenly keeping their tokens in V1. A petition to reimburse holders from such losses reached 430 signatories as of 20 April.
Recent accusations made against SafeMoon CEO John Karony and former employee Ben Phillips have tainted the project’s reputation, with native token SFM declining by 32% on April 18.
While it remains to be seen whether or not the latest finding can reignite confidence among long-term investors, SFM’s price was staging a comeback on the chart. Its price recovered by 22% on the day, helped by a risk-on broader market.