SafeMoon (SFM): mechanics, controversies, and tokenomics explained
Launched in March 2021, SafeMoon (SFM) is a BEP-20 token on Binance Smart Chain designed to reward long-term holders through a unique transaction tax model. Despite its viral growth and millions of holders, the project has been surrounded by controversy and has recently declared bankruptcy.
Key takeaways
- Transaction fees redistribute to holders and liquidity
- Core features: reflection, auto-liquidity, burn, SafeMoon V2
- Controversies: fraud accusations, lawsuits, bankruptcy
- Critical issues: utility, security, sustainability
Project Overview
SafeMoon aimed to implement an incentive-based system that promotes holding over trading check out our page on the analysis of SafeMoon (https://cointobuy.io/safemoon/). A 10% transaction tax was applied to each buy/sell; 5% was redistributed to holders, and 5% was added to liquidity via PancakeSwap. Originally marketed as a community-driven token, it leaned heavily on influencer marketing (e.g., Jake Paul) and promises of a wallet, exchange, and debit card—most of which were delayed or never delivered.Technical Mechanics Simplified
- Reflection Rewards:
- A 10% fee is charged per transaction. 5% is automatically redistributed to holders.
- Auto-Liquidity & Burn:
- 5% is converted into BNB and added to PancakeSwap liquidity. A portion is periodically burned to reduce supply.
- SafeMoon V2 Migration:
- In December 2021, the project migrated to V2 (1:1000 consolidation), reducing transaction fees to 2% and introducing a new contract architecture.
- Other Features (promised, not delivered):
- SafeMoon Swap, SafeMoon Wallet, a debit card, and blockchain ambitions—all with limited progress.
Timeline and Evolution
- March 2021: Launch and explosive growth (+23,225% in weeks).
- Dec 2021: Migration to SafeMoon V2 with manual token conversion.
- April 2022: Whistleblower Coffeezilla reveals internal wallets and misused funds.
- 2023: Major liquidity pool hack ($9M stolen; ~80% recovered).
- Nov 2023: Company founders indicted for fraud, market manipulation, and money laundering.
- Dec 2023: SafeMoon LLC files for Chapter 7 bankruptcy and begins liquidation.
Platforms to buy SafeMoon
Price Forecast
- Unique “reflect token” model incentivizing holding.
- Auto-liquidity model helped stabilize prices early on.
- Unique “reflect token” model incentivizing holding.
- Auto-liquidity model helped stabilize prices early on.
- Unique “reflect token” model incentivizing holding.
- Auto-liquidity model helped stabilize prices early on.
Learn more on SafeMoon
Where to Buy SFM ?
| Platform | Type |
|---|---|
|
Bitvavo |
CEX |
|
Binance |
CEX |
|
BingX |
CEX |
|
Bitpanda |
CEX |
How to Store SFM Safely ?
Hardware Wallets
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Software
SFM became a case study in DeFi tokenomics—with clever mechanics like reflection and burning—but also in poor governance, lack of transparency, and legal downfall. Now bankrupt, the project has virtually no active roadmap.
Outlook:
- A possible acquisition by VGX Foundation was discussed post-liquidation.
- Reviving trust would require real utility and full decentralization.
Comparison of the Best Crypto Exchange Platforms
| Platform | Description | Advantages | Disadvantages |
|---|---|---|---|
|
|
European user-friendly platform, ideal for beginners and those seeking portfolio diversification. |
Simple interface, competitive fees, European regulation, supports multiple assets. |
Not suitable for professional or high-frequency traders. |
|
|
Global leader in crypto trading, offering extensive features and asset variety. |
Advanced tools, low fees, high liquidity, wide range of cryptocurrencies. |
Can be overwhelming for beginners, regulatory scrutiny in some regions. |
|
|
Social trading-focused platform with strong derivatives offerings. |
Copy trading features, good for beginners, supports futures and spot trading. |
Limited fiat options, less recognized than top-tier exchanges. |
|
Bitpanda
Buy on Bitpanda
|
Austrian platform offering crypto and traditional assets in one place. |
Supports crypto, stocks, ETFs, precious metals, easy to use. |
Higher fees, limited advanced trading features. |
FAQ SafeMoon
What is SafeMoon? A BEP-20 DeFi token launched in March 2021 with a transaction fee model to reward holders. How does SafeMoon tokenomics work? 10% transaction fee: 5% redistributed to holders, 5% added to PancakeSwap liquidity, and burned over time. What happened with SafeMoon V2? In December 2021, V2 launched with a 1:1000 token consolidation and reduced fees (2%), requiring manual migration. Is SafeMoon a scam? The project faces multiple fraud allegations, founder indictments, and is now bankrupt—so extreme caution is advised. Can I still invest in SafeMoon? Highly risky: low liquidity, no exchange presence, ongoing legal issues, and no active development.Disclaimer :
Trading is risky and you may lose all or part of your capital. The information provided does not constitute financial advice and/or an investment recommendation
