SocialFi Token LOUD Sees 62% Price Drop Despite Successful Presale
The Loud (LOUD), a new SocialFi experiment on the Solana (SOL) blockchain, has seen its price plunge by 62.0%.
The token seems to grapple with significant market challenges despite an initially successful presale that raised over 2.5 times its target.
Why Is LOUD Token’s Price Dropping?For context, LOUD is a Kaito-powered experimental “attention market” project. It rewards users for actively promoting the token on social media.
Each week, a portion of the fees collected from LOUD trading is to be distributed in SOL to the top contributors who generate the most social engagement, or “mindshare.” By connecting their wallets and participating, users earn real rewards based on how much they help spread awareness and conversation about the token.
LOUD Project Top Contributors. Source: Stay Loud
The LOUD token debuted through an Initial Attention Offering (IAO) hosted on HoloworldAI’s HoloLaunch platform. The IAO aimed to raise 400 SOL for 45% of the 1 billion LOUD token supply.
Notably, the presale far exceeded expectations, raising 1,015.6 SOL. Moreover, users have already claimed 99.46% of the 450 million tokens, reflecting strong early interest. Despite the promising start, LOUD’s market performance has raised concerns.
Data from DexScreener showed that the token opened with a price of $0.0003. It quickly climbed to an all-time high of $0.032.
However, the high was succeeded by a continuous decline. LOUD’s value depreciated by 62%. At the time of writing, the SocialFi token was trading at $0.011.
LOUD Price Performance. Source: DexScreener
Similarly, the market capitalization also saw a substantial dip from a high of $32.7 million to $10.5 million at press time. An analyst weighed in on the drop, noting that LOUD’s market performance fell short.
“Behind this are some issues experienced during the launch and the lack of a clear roadmap for the token’s future,” he stated.
Another analyst highlighted that early participants, including those on the whitelist, those who sold whitelist spots, and those who bought official tokens at launch, did make significant profits. Nevertheless, investors who purchased tokens just 15 minutes after the opening have mostly faced losses.
this guy bought the literal top of $loud
down -69% (nice?)
$116k lost pic.twitter.com/NddtsXmtkO
