A newly proposed class action lawsuit against SafeMoon Cryptocurrency has investors concerned. Many of them are questioning if the social media-driven token is a pump-and-dump scheme.
SafeMoon, a BNB Chain-native cryptocurrency, allegedly recruited a number of celebrities to lure investors in with misleading promotions. Some of the prominent names roped in by the scheme include musicians such as Nick Carter, Soulja Boy, Lil Yachty and YouTubers Jake Paul and Ben Phillips.
A pump-and-dump schemes is a form of fraud. The purpose of the scheme is to take money from innocent investors by encouraging them to buy an asset based on false information. When those investors buy in, the pumper is selling, which effectively pushes the price lower. The class action lawsuit alleges that there was a “dip – out’ attempt made by the celebrities which is a criminal offense.
The Statement:
“The Promoter Defendants’ improper promotional activities generated the trading volume needed for all the Defendants to offload their SafeMoon Tokens onto unsuspecting investors.”
With the popularity of cryptocurrency moving into the mainstream media, many celebrities are taking notice. The FTX token recently released a commercial with quarterback Tom Brady. Also Crypto .com has procured celebrity Matt Damon as there spokes person for their commercials. This is just the tip of the ice berg of crypto ads to come.
At the time of publishing, SafeMoon price is $0.000001 USD with a 24-hour trading volume of $116,224 USD. SafeMoon is down 3.14% in the last 24 hours.
