$SOM (Somputer) turned volatile, crashing from $0.09 to $0.02. The token holds $1.3M in unsecured, unlocked liquidity on its main Raydium trading pair.
SOM received multiple warnings for being an unsecured token with the risk of a rug pull from the team. Even without a complete crash, the token may remain volatile, or be prone to crashes and a new sniping of the supply.
SOM crashed from a recent peak above $0.09, with a brief stop at $0.06, before deepening its losses down to $0.02. The recent price moves may suggest SOM is ready to wipe out all value and is a highly risky asset to be avoided. Within minutes, the liquidity in the trading pair sank from $1.3M to under $900K, remaining fragile as buyers and sellers clashed.
https://x.com/lookonchain/status/1852385276372599022
The liquidity of the token is not locked, which means that the developers can pull it out any moment, leaving the investors stranded. At the same time, it appears that the devs and insiders are moving supply to new wallets, gearing to dump it on incoming investors. Hence, caution is advised!
There is on-chain evidence that insiders are moving the supply and creating a fake impression of traffic and demand. Just days after its launch, the supply of SOM shows an almost perfect distribution to wallets holding an equal amount of tokens. Each new wallet holds exactly 0.04% of the entire SOM supply.
All those artificially created wallets can be controlled to automate selling and dump the supply onto the community. For now, there are no wallet clusters or activity, but those may begin at any moment. The sniped supply is a snapshot as of November 1, just before the crash of SOM on Raydium.
SOM is receiving heavy social media promotion
Somputer has a clear initial idea – to become the Solana market for buying and selling computing power. However, the new project is behaving like a meme token, though with an even riskier launch on Raydium, without a locked sign on its liquidity screen.
The Somputer interface depends on a Telegram bot, where users search for available GPU power, make a payment and complete their task. The project, however, did not choose the lengthy path of launching a token through a presale, instead immediately launching a Raydium pair.
SOM boasts 81,472 holders, a ridiculously high count for an asset that launched just days ago. Even hot memes take weeks to accrue this amount of wallets organically through buying. As of November 1, however, those wallets are most probably the holders of a totally sniped supply. Buying SOM at this point may turn new users into exit liquidity for the team. The SOM supply does not seem to be sniped, despite some buying at the recent lows. Instead, on-chain analysts concluded the token is most likely bundled for selling to the community, once the project becomes popular.
In the past day, SOM also staged a rapid rally of price discovery, attacting the seekers of newly active tokens. The SOM team was betting on FOMO to continue placing its tokens, capitalizing on remaining demand for AI crypto startups. Somputer has been around on social media since early 2023, but entered the competitive token trading space just recently. At its peak, SOM reached a market cap above $80M within hours, surpassing even more reliable projects with locked liquidity.
