Sonm (SNM) crypto: from rags to riches, and back again

Something truly sensational has happened in recent days to SNM, the crypto of the Sonm project. 

The Sonm project

Sonm is a project that is trying to build a decentralized Fog Computing platform. 

Fog Computing is a horizontal architecture for distributing computing resources and services, data storage, controls, and functionality over a network of computers in the Cloud.

It is precisely an extension of the Cloud Computing concept, particularly for IoT applications that must meet precise quality parameters to be processed, including bandwidth and low latency. 

Sonm provides cloud services based on distributed hardware at the client level, including PCs and servers, thus enabling the ability to rent hardware or use computing power provided by others. 

The crypto SNM of the Sonm platform

The SNM token is the internal currency of the Sonm platform that enables the purchase of computing power. 

What was most surprising, however, was its recent price parabola. 

On Saturday, 19 November, the price was about $0.2. The next day it spiked to nearly $11, and then dropped below $1.3 today. 

This was a full-blown bubble, inflating and deflating at record speed. 

Indeed, in just over 24 hours it went +5,250%, and in the next 24 hours, it went -86%. 

It is worth noting that it had spiked similarly before, but not to this magnitude. 

For example, between April 28 and May 1 last year it had gone from $0.006 to $1.12, or +1,700% in the space of four days. On May 24 the price returned below $0.2. 

Another similar spike occurred in November 2021, when it went from $0.25 to $0.88 in just six days, then back to $0.24 in mid-December. 

But the spike in recent days was even more anomalous. 

First, it was more rapid, because it lasted less than two days, and then because it was of proportions never before seen on this token. Moreover, it did not occur during an upswing in the crypto markets, like the previous two, but in the midst of a bear market. 

The price history of SNM

It is worth noting that SNM has existed on the market as far back as October 2017, which was at the last stage of the speculative bubble of the previous cycle, when it debuted on the markets with a price of just under $0.1. 

It had its first boom in early January 2018, when it managed to rise above $0.7. 

During 2018, it fell as low as $0.02, losing 97% of its value from its highs and 80% from its placement price. 

It lost again thereafter, hitting an all-time low during the financial market crash of March 2020, when it even fell below $0.004. By then it had lost 99% of value from the highs, and 96% from the placement price. 

In early 2021, it began to recover, thanks to the last big bull run in the crypto markets. 

Indeed, by February 2021 it was back to $0.02, which was the low price of 2018, and by April 2021 it was back close to the listing price. 

Then there was the first resounding spike, the one at the end of April, followed by the first major collapse. In November of the same year, there was a second big spike followed by a second big collapse. 

Truth be told, even during the course of 2022 it recorded other ups and downs. 

Indeed, in early August it was back near the placement price of about $0.1, but by the end of August, it had risen to $0.5. On 13 September it had even returned to $0.7, but by the 16th of the same month, it had fallen to $0.4. 

Since then it had continued to fall until $0.2 on 18 November, before the last resounding spike. 

The future of the project

At this point, the thought comes to mind that, just as in the past, SNM’s price may now return to some sort of normalcy, that is, an average price between $0.1 and $0.2. 

However, it might also do the same as in 2019/2020, and go down again, but given the huge anomaly of the last spike, anything might happen. 

It really seems to be a token that alternates long phases of lateralization with fast spikes thanks to which it gains a lot in a very short time only to end up losing everything it had gained. 

Indeed, the fact that the price before the last spike was in the lateralization range between $0.1 and $0.2 really suggests that it may end up returning to this area once the recent speculative bubble has been exhausted. 

Its actual use probably does not justify these sudden and huge increases in buying pressure, instead most likely due only to speculation. 

Those who buy it during periods of lateralization are lucky because they can use it on the Sonm platform and sell it back quickly when these brief speculative bubbles form.