LOUD Token Price Collapse: Insights Into Solana’s SocialFi Experiment

The Loud Token’s Price Dive Sparks Concerns in SocialFi Community

LOUD Token Price Collapse – The Loud (LOUD), a novel SocialFi experiment running on the Solana (SOL) blockchain, has experienced a dramatic price decline of 62% since its launch. Despite an initially successful presale that raised over 2.5 times its target, the token now faces significant market headwinds.

What is Causing LOUD Token’s Price Decline?

LOUD operates as a Kaito-powered attention market, rewarding users for promoting the token through social media engagement. Each week, a portion of the trading fees collected is distributed in SOL to top contributors based on the amount of social “mindshare” they generate. Early participants connected their wallets and earned rewards for spreading awareness, creating strong initial interest.

The token debuted via an Initial Attention Offering (IAO) on HoloworldAI’s HoloLaunch platform, aiming to raise 400 SOL for 45% of its 1 billion LOUD token supply. Remarkably, the presale raised 1,015.6 SOL, with users claiming 99.46% of the 450 million tokens allocated.

Price Movement and Market Performance

After launching at a price of $0.0003, LOUD surged to an all-time high of $0.032 but soon faced a continuous downward spiral. At the time of writing, LOUD trades at approximately $0.011, reflecting a 62% depreciation. Market capitalization also fell sharply from a peak of $32.7 million to about $10.5 million.

Analysts attribute the price decline to launch issues and the absence of a clear roadmap. Early investors, including whitelist participants and initial buyers, profited, but those who bought shortly after launch mostly incurred losses. Concerns were also raised due to Kaito’s previous token, JONES, which lost 99% of its value.

SocialFi’s Emerging Yet Unstable Landscape

Crypto influencer Him Gajria warned that tokens aggressively promoted by multiple influencers simultaneously might signal deeper issues, citing LOUD as an example.

Meanwhile, Andrei Grachev, Managing Partner at DWF Labs, highlighted how SocialFi projects like LOUD encourage users to compete for yield by building influence, fueling a hunger for real-time monetization in pseudonymous communities. He noted that, while promising, SocialFi remains in its infancy and volatile, with many projects emerging and disappearing rapidly.

Grachev concluded that the future success of SocialFi hinges on developing sustainable on-chain value distribution and community growth mechanisms, emphasizing that the sector’s evolution will be far from linear but is undeniably underway.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.