0
0
The Loud (LOUD), a new SocialFi experiment on the Solana (SOL) blockchain, has seen its price plunge by 62.0%.Ā
The token seems to grapple with significant market challenges despite an initially successful presale that raised over 2.5 times its target.
For context, LOUD is a Kaito-powered experimental āattention marketā 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 āmindshare.ā By connecting their wallets and participating, users earn real rewards based on how much they help spread awareness and conversation about the token.Ā
LOUD Project Top Contributors. Source: Stay Loud
The LOUD token debuted through an Initial Attention Offering (IAO) hosted on HoloworldAIās HoloLaunch platform. The IAO aimed to raise 400 SOL for 45% of the 1 billion LOUD token supply.Ā
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, LOUDās 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. LOUDās 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 LOUDās market performance fell short.
āBehind this are some issues experienced during the launch and the lack of a clear roadmap for the tokenās future,ā 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.
The analyst also revealed that Kaitoās team, behind LOUD, previously issued the token JONES. This tokenās value has since declined by 99%. This has further fueled concerns.
āYou shouldnāt worry about a token shilled by 1 influencer ā You should worry about a token shilled by several influencers simultaneously. I.e., Theyāve been compromised. Eg. Loud,ā crypto influencer Him Gajria posted.
Meanwhile, Andrei Grachev, Managing Partner at DWF Labs, also drew attention to the noteworthy user behavior surrounding the project.
āThe payouts are interesting, sure, but what is interesting to observe is how people are actually behaving: theyāre literally competing for yield by trying to build influence. Thereās clearly this hunger for real-time monetization, especially among people who want to stay pseudonymous,ā Grachev told BeInCrypto.
He explained that early DeFi protocols transformed liquidity into flexible incentive mechanisms, and now SocialFi is applying the same concept to attention. However, Grachev cautioned that this area is still very new and unstable, with projects quickly emerging and disappearing, and much remains unrefined.
āWe donāt think every SocialFi project is going to make it. But what we do think is that protocols are going to start embedding these native growth loops that feel way more like games or markets than traditional marketing. Itās not going to be a clean transition, but honestly? Itās already happening,ā he added.
He emphasized that the key challenge is whether these platforms can mature into lasting systems that support real on-chain value distribution and community growth. Therefore, it remains to be seen how these experimental models will develop over time.
0
0
Manage all your crypto, NFT and DeFi from one placeSecurely connect the portfolio youāre using to start.
0
0
