Ethereum-Based Simplify Token Plummets 80% After Initial Surge

According to PANews, the Simplify token (SIMP) experienced a significant drop in value, falling 80% from its peak of $53.36 to $9.56 at the time of writing. The Ethereum-based ERC-314 standard project Simplify gained attention on social media after being promoted by several key opinion leaders (KOLs). The project's transactions are straightforward, allowing users to buy and sell $Simp tokens by transferring ETH directly to an address, bypassing all trading infrastructure on the Ethereum network, including decentralized exchanges (DEX). KOL paulwei used the analogy of an 'empty soapbox' to help community members understand Simplify's innovative mechanism. However, after the token's price soared to $53.36, some community members pointed out potential flaws in Simplify's code. This led to panic within the community, and Simplify's official social media accounts acknowledged the project as a social experiment, causing the token's price to plummet to around $9. A few hours later, a community member from Peking University, @yicunhui2, stated that there were no issues with the project's code. Several scientists verified this claim, and the community's sentiment began to improve, with the token's price experiencing a slight recovery. Nevertheless, as Simplify itself has stated, the project is still a social experiment with potential risks, and its popularity has decreased compared to the previous day, with the token's price hovering around $9. In conclusion, while it is essential for the community to pay attention to innovation, it is also crucial to be cautious about potential risks, as many projects lose momentum and fade away in this rapidly evolving market.