SafeMoon's Pivot: Community Control, Meme Coin Launch After Billion Token Burn
1min read SafeMoon, a cryptocurrency project that has faced legal troubles and bankruptcy in the past, has announced a significant shift in its strategy. The project has transitioned to full community control and plans to launch a Solana-based meme coin for its holders. This move comes after the project burned billions of tokens across multiple blockchains.
The team behind SafeMoon clarified that the contract for the new meme coin remains private due to technical adjustments. They warned users against buying unofficial versions of the coin, stating that doing so would likely result in being scammed. The team emphasized that the delay in releasing the contract is necessary to streamline the automated swap process for SFM V2 holders.
SafeMoon's pivot to greater community engagement is a departure from its previous approach. The project aims to adopt a lighthearted, community-led approach with no predefined use case, focusing solely on engagement. The team stated that this move is a way to prove their love for the community and to hand over control of the project to its holders.
SafeMoon's shift to Solana comes after the project burned 2.2 trillion SFM tokens across Ethereum, Polygon, and Binance Smart Chain. The project announced that it had removed nearly all tokens on Ethereum and Polygon and about 60% from the Binance Smart Chain supply. These efforts follow a concerning history marked by fraud allegations and bankruptcy.
In 2023, the project's CEO and CTO were arrested by the US DOJ on allegations of using investor funds for personal expenses. At its peak, SafeMoon's market cap soared to over $1 billion, which has now dropped below $20 million. US authorities accused SafeMoon's leadership of misusing investor funds, alleging that over $200 million in locked funds were withdrawn to buy personal luxury cars and property. This led to the project's bankruptcy filing in December.
The VGX Foundation acquired SafeMoon through a bankruptcy court ruling, stating that they believe in the power of the community and the project's future. The new strategy seeks to put past controversies behind us and place the project's future entirely in the hands of the community.
SafeMoon's transition to a community-led model marks a significant shift in strategy, emphasizing user engagement and transparency. With the introduction of a meme coin on Solana and the substantial burning of tokens, the project hopes to redefine 
