SafeMoon is preparing to launch a new memecoin on the Solana blockchain this Saturday at 1:00 AM UTC, giving holders of the SFM token a chance to swap their holdings despite the current low liquidity environment.
The SafeMoon team has burned a staggering 2.2 trillion SFM tokens across several blockchains, including Ethereum, Polygon, and Binance Smart Chain, according to a report from the VGX Foundation. Most of the SFM supply on Ethereum and Polygon has been eliminated, with roughly 60% of the Binance Smart Chain supply also being burned.
Holders of the SFM token will be able to exchange their tokens for the new SafeMoon memecoin through the VGX wallet. The VGX Foundation stated that this initiative would provide a way for users to exit their positions, despite the challenges of liquidity. The foundation is hopeful that the memecoin will eventually be listed on exchanges again, improving market liquidity and allowing the community to recover some of their funds.
Once a prominent project during the 2021 crypto bull market, SafeMoon’s market cap peaked at $17 billion. Today, its market cap has dropped to around $41 million, and the token has been delisted from most major exchanges.
In 2023, SafeMoon’s former executives were charged by the U.S. Department of Justice for allegedly defrauding investors, using over $200 million from locked funds to purchase luxury cars and properties. Following the legal troubles, the company filed for bankruptcy in December 2023 and was subsequently acquired by the VGX Foundation.
