Loud token and a long slide of 62%: Does LOUD still have a future?

LOUD (LOUD), a promising project in the SocialFi space on the Solana blockchain, is currently facing a significant decline in the value of its token in recent weeks. The decline has reached up to 62%, which has caused many investors and the concerned community to worry about the market performance of the project.

Introduction to LOUD token

LOUD is an ambitious SocialFi project built with the goal of creating an "attention market" on the Solana blockchain. Developed by Kaito, LOUD rewards users for actively promoting and sharing LOUD tokens on social media platforms. Every week, a portion of the fees collected from LOUD transactions will be distributed in the form of SOL to active participants, encouraging them to create strong interactions with the community and "share their minds." This mechanism not only helps enhance awareness of the project but also creates opportunities for users to earn deserved rewards based on their level of participation.

The LOUD project was introduced through an Initial Attention Offering (IAO) on HoloworldAI's HoloLaunch platform, with the goal of raising 400 SOLs, accounting for 45% of the total 1 billion LOUD tokens. In particular, the pre-sale far exceeded expectations, raising 1,015.6 SOL, while 99.46% of the tokens were requested by users, reflecting strong interest from the early days.

With this unique SocialFi model, LOUD not only brings value to users through rewards but also encourages connection and community building around the project, creating a highly potential ecosystem on the Solana platform.

Top contributors to the LOUD Project | Source: Stay Loud## The concerning fall

Although LOUD started with high expectations and strong attention, the market did not maintain that optimism. Data from DexScreener shows that LOUD opened trading at $0.0003 and then quickly surged to an all-time high of $0.032. However, after this impressive growth, the value of the token began to fall sharply, currently trading at $0.008, down 75.7% from the peak.

! 1 Hour LOUD Price Chart | Source: DexScreenerAlong with the decline in value, LOUD's market capitalization has also seen a severe decline, from $32.7 million to just $10.5 million at the time of this article. This has raised many questions about the stability and sustainability of the project in the future.

One of the main reasons pointed out by analysts is the lack of a clear roadmap and issues during the launch process.

"Behind this fall are several issues that have arisen during the implementation process and the absence of a clear strategy for LOUD's future," an analyst said.

Another analyst emphasized that early participants, including those on the whitelist, those selling positions in the whitelist, and those buying the tokens officially right at launch, have all made significant profits. However, investors who bought tokens just 15 minutes after the sale opened mostly had to bear losses.

Additionally, another factor that raises concerns is the performance of the Kaito team, the group behind LOUD. Previously, this team released the token JONES, but its value plummeted by as much as 99%, causing many investors to doubt the long-term value retention capability of LOUD. This instability is further reinforced as Him Gajria, an influencer in the cryptocurrency community, warned that having a token promoted by multiple influencers at the same time could pose significant risks to the project.

In this context, the instability of token value and the lack of a long-term development strategy for LOUD are forcing investors to reconsider their decisions. Can LOUD regain its growth momentum and fulfill its commitments to a sustainable SocialFi ecosystem, or will it continue to face an uncontrollable decline in the market? The answer remains uncertain.

The truth from the experts' perspective

One of the interesting comments came from Andrei Grachev, Managing Partner at DWF Labs, who highlighted user behavior around the LOUD project. He shared:

"Payments from LOUD are definitely an attractive factor, but what's worth noting is the way that users actually act. They are competing for profits through building influence and maintaining aliases. This reflects a appetite for real-time monetization that the SocialFi model offers."

Grachev also emphasized that the SocialFi model, which converts attention into financial value, is approaching a very flexible incentive mechanism similar to DeFi protocols. However, he did not forget to issue an important warning: the SocialFi sector is still very new and unstable. There are many projects that have emerged but quickly disappeared, creating significant challenges for sustainability and long-term development.

He pointed out that although SocialFi has the potential to grow and create real financial value for users, the lack of stability in this industry remains a factor that makes investors and participants extremely cautious. Even with investment in influence and community building, whether these models can be sustainable in the long term is still a big question that needs to be answered.

The Future of SocialFi

Although SocialFi protocols like LOUD are opening up a new direction for the cryptocurrency community, this does not mean that every project in this field will be successful. Andrei Grachev noted:

"While we don't think every SocialFi project will be successful, the protocols will gradually form sustainable growth loops, just like in games or marketplaces, rather than relying on traditional marketing."

The main issue remains whether SocialFi platforms can evolve into real value distribution systems, thereby promoting sustainable community development. This is a big question that time will tell, as this experimental model faces challenges related to the constant volatility of the cryptocurrency market.

Although LOUD has started with strong traction from the community and has received support from powerful blockchain platforms such as Solana, the severe decline in token value and market capitalization over the past time has led many to begin to doubt the project's long-term success. This further highlights an important lesson that, while SocialFi models can bring breakthrough innovations in the crypto industry, for them to become sustainable and efficient systems, they will face a lot of challenges to maintain and grow in the long term.

Annie

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The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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