SafeMoon, once a $17 billion market cap giant during the 2021 bull run, is making a strategic pivot to Solana. The project plans to launch a new memecoin after burning most of its existing token supply across multiple chains.
The VGX Foundation, which acquired SafeMoon following its bankruptcy in December 2023, has announced a massive token burn of 2.2 trillion SFM tokens. This burn spans the Ethereum, Polygon, and Binance Smart Chain networks.
The Great Token Migration
The token burn marks a significant shift in SafeMoon’s strategy. The team has eliminated nearly all tokens on Ethereum and Polygon. They’ve also burned about 60% of the Binance Smart Chain supply. This dramatic reduction aims to consolidate the project’s tokenomics.
Current SFM holders will get a chance to swap their tokens for the new Solana-based memecoin through the VGX wallet. This move could offer a lifeline to investors who’ve been stuck with illiquid positions.
Market Impact and Analysis
The migration to Solana comes at an interesting time. Solana’s ecosystem has seen tremendous growth in memecoin activity. The network’s fast speeds and low transaction costs make it ideal for token trading.
SafeMoon’s market cap has dropped from $17 billion to roughly $41 million. Most exchanges have delisted the token. The new Solana-based token could potentially tap into the current memecoin trend and provide better liquidity.
Learning from Past Mistakes
This relaunch follows a turbulent period for SafeMoon. In 2023, the Department of Justice charged the previous executive team with fraud. They allegedly misappropriated $200 million of locked funds for personal luxuries.
The VGX Foundation’s takeover represents a fresh start. Their focus on transparency and providing exit liquidity for existing holders shows a more mature approach to token management.
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The launch is scheduled for Saturday at 1:00 AM UTC. This timing could impact initial trading volumes and price discovery. Traders should monitor liquidity levels and exchange listings closely.
Tags: SafeMoon, Solana, Memecoin, Token Migration, Crypto Recovery
Source: CoinDesk