The price of Safemoon dropped over 45% in value within 24 hours and is now down over 96% from its all-time high. This catastrophic drop in price came shortly after Coffeezilla revealed new allegations of fraud against SafeMoon’s founder and CEO.
The latest video revealed a large token holder (known as a whale) selling off four billion Safemoon tokens worth almost $2 million.
According to a post on Reddit, the Safemoon community had spent the previous week and a half denying and disputing the allegation that the wallets involved in the fraud were personal wallets belonging to Safemoon CEO John Karony.
The Safemoon community believed the in-going and out-going transactions to be innocent transactions that included depositing and removing tokens from liquidity pools and payments from Bitmart.
The thread included links to two of the wallets on BSC Scan showing the wallets involved in the scheme and their transactions.
The numbers reach almost $2 million when both of the wallet transactions are combined.
The Reddit post goes on to outline another situation where Coffeezilla was tipped off about another pump-and-dump scheme run by former Safemoon employee Ben Phillips. This scheme allegedly involved John Karony spending $300,000 on the tokens that were to be manipulated.
A hotdog-related NFT project was also mentioned in the post with Karony allegedly saying that was the only project he liked on Twitter. One of the wallets revealed in Coffezillas videos allegedly owned an NFTs from that project. This seems to link John Karony to the wallets involved in the fraud.
However, according to the Reddit post, the Safemoon community still isn’t convinced, seeing the whole situation as “fud” and providing a good opportunity to accumulate more coins.