Safemoon Spikes 10% Despite Coffeezilla’s Allegations of Fraud

Vinod Dsouza
Safemoon sfm
Source: Unsplash

It’s been around a week since YouTuber Stephen Findeisen ‘Coffeezilla‘ dropped his second video that allegedly targeted Safemoon CEO John Karony for indulging in fraudulent activities. Coffeezilla allegedly explained in his Netflix-style video that Karony didn’t deposit the 5% liquidity into the ‘liquidity tax pool’. The YouTuber then accused the CEO of transferring the amount to the founder of the token Kyle instead.

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The YouTuber also accused the team of paying BitMart to list the token on its platform. The self-styled crypto detective shared a screenshot of an email that read, “As for the service fee, Safemoon paid BitMart for listing.” He alleged that BitMart returned 5% directly to the Devs, so they can add the 5% to the liquidity pool. “Instead of sending it to the LP, they sent it directly to the developers to do it.” He alleged that the dev did not add it to the liquidity pool and made away with the amount.

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Safemoon Spikes 10% Despite Allegations of Fraud

While the allegations are damning and have the ability to break the crypto, Safemoon went the opposite direction instead. While SFM dipped close to -30% when Coffeezilla’s video was released, it quickly gained back steam the next day. Now that it’s been a week since the video was out, Safemoon is up +10% in the last 7-trading days.

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So what made the price of Safemoon go up, instead of going down? The answer is its community. The SFM community was seen clapping back at Coffeezilla’s statements and fact-checking his video line-by-line. Several investors took to Reddit and Twitter highlighting that a few of his allegations in regards to calculations are inaccurate.

Surprisingly, even Coffeezilla issued a clarification citing they miscalculated the original estimation. “The real losses to INVESTORS appear to be lower about $6,300,000,” not 100 million, he pinned to his YouTube comments.

Source: YouTube . Coffeezilla

Nonetheless, both Coffeezilla and the community are going back and forth with the ‘allegations and fact-checking’ since then. At press time, Safemoon was trading at $0.00074152 and is up +6.6% in the 24-hours day trade. It is also up +9.7% over the last 7-trading days.