Crypto projects face big challenges. SafeMoon is one of them. It had a rough past. Fraud claims hurt its name. Its value dropped a lot. But SafeMoon is fighting back. Its SafeMoon survival strategy includes burning tokens, moving to Solana, and escaping bankruptcy.
Why SafeMoon Needs a Survival Strategy
SafeMoon started in 2021. It grew fast. Its market value hit $17 billion. People loved its promise. It offered rewards for holding tokens. But trouble came. In 2023, SafeMoon filed for bankruptcy. Its old leaders faced fraud charges. They took $200 million, said the U.S. Department of Justice. The token’s value fell to $41 million. SafeMoon needed a plan to survive. Its new team, led by VGX Foundation, made bold changes.
What Is a Token Burn?
SafeMoon burned 2.2 trillion SFM tokens. This means they destroyed them. Why? To make tokens rarer. Fewer tokens can raise value. It’s like burning old money. SafeMoon removed most tokens on Ethereum and Polygon. It also cut 60% of Binance Smart Chain tokens. This was a big move. In 2024, burns helped SafeMoon’s price jump 57%. But burns don’t always work. Prices can still fall.
How Token Burns Work
Burning tokens is simple. The team sends tokens to a “dead” wallet. No one can use them. This cuts the total supply. SafeMoon had 10 trillion tokens at first. Now, much less exists. The burn happened across three blockchains. Ethereum and Polygon lost nearly all SFM tokens. Binance Smart Chain lost over half. This makes SFM scarcer. But burns need trust. If people doubt the project, prices may not rise.
Why Burn So Many Tokens?
SafeMoon burned tokens to fix its image. After fraud claims, trust was low. Burning shows commitment. It says, “We value our token.” In 2024, burns led to a 25–60% price surge. But some worry. On X, users said burns don’t guarantee success. Other memecoins, like Dogecoin, don’t burn often. Yet they thrive. SafeMoon’s burns aim to rebuild faith. But they must show results.
Moving to Solana: A New Home
SafeMoon is leaving Binance Smart Chain. It’s moving to Solana. This started in 2024. The move is almost done. Solana is fast. It handles 65,000 transactions per second. Binance Smart Chain does 150. Solana’s fees are low, about $0.00025 per transaction. This makes it great for memecoins. SafeMoon wants to be a memecoin now. Solana is perfect for that.
Why Choose Solana?
Solana is popular for memecoins. It’s fast and cheap. SafeMoon’s old chain, Binance Smart Chain, was slower. It had higher fees. Solana’s speed helps small transactions. Memecoins rely on community trades. SafeMoon’s team said, “Solana is the home of memes.” This move aims to attract new users. It also cuts costs. But there’s a risk. Solana has outages sometimes. In 2022, it stopped for hours. SafeMoon must plan for this.
How the Migration Works
Migration means swapping old tokens for new ones. SafeMoon uses the VGX wallet. Holders trade SFM for a new Solana-based token. Bitrue, a crypto exchange, helps with this. They guide users. The swap started in 2024. It’s set to finish soon. Some users worry. On X, people said the process is confusing. Clear guides are key. SafeMoon must explain steps well. This builds trust.
Escaping Bankruptcy
SafeMoon filed for bankruptcy in 2023. It was a tough time. The old team faced fraud charges. They misused $200 million. Exchanges dropped SafeMoon. Its value crashed. VGX Foundation bought SafeMoon. They made a plan. They burned tokens. They moved to Solana. They also changed how SafeMoon works. These steps aim to save the project. Recovery is hard. But there’s hope.
VGX Foundation’s Role
VGX Foundation took over in 2023. They want to fix SafeMoon. They burned 2.2 trillion tokens. They started the Solana migration. They also plan a new token. This token is a memecoin. It has no central team. The community runs it. VGX said, “We want holders to exit if they choose.” This shows care for users. But bankruptcy left scars. Trust is still low. VGX must prove they’re different.
New Governance: The DAO Plan
SafeMoon is becoming a DAO. This means Decentralized Autonomous Organization. The community makes decisions. Token holders vote. This is new for SafeMoon. The old team controlled everything. Fraud hurt trust. A DAO gives power to users. In 2024, SafeMoon said, “Community governance is our goal.” This could rebuild trust. But DAOs are tricky. They need active users. On X, some doubt the community is ready. SafeMoon must teach users how to vote.
Challenges in SafeMoon’s Strategy
SafeMoon’s plan isn’t perfect. There are risks. Token burns don’t always raise prices. Solana’s outages could hurt. The DAO needs strong community support. Fraud history makes people skeptical. On X, users said, “SafeMoon’s past is hard to forget.” The price surged 60% in 2024. But it dropped later. Analysts warn of a 55% correction. SafeMoon must work hard to keep trust.
Price Volatility
SafeMoon’s price jumped after burns. It rose 25–60% in weeks. But it fell again. Selling pressure grew. In 2025, the market cap is $20–41 million. That’s far from $17 billion in 2021. Memecoins are risky. Prices swing fast. Dogecoin and Shiba Inu face similar issues. SafeMoon needs steady growth. Burns and migration help. But they’re not enough alone.
Community Trust
Trust is SafeMoon’s biggest hurdle. Fraud claims hurt. The old team spent $200 million on luxuries. The DOJ charged them. One leader pleaded guilty. The new team must prove they’re honest. On X, some users support the changes. Others don’t. They fear another scam. Clear communication is key. SafeMoon must share plans openly. The DAO could help. But it needs active users.
Regulatory Risks
Crypto faces strict rules. The U.S. SEC watches memecoins. SafeMoon’s fraud history draws attention. A DAO may help avoid some rules. But it’s not certain. In 2024, 40% of crypto projects faced legal issues. SafeMoon must follow laws. Clear rules for the DAO are vital. They protect users. They also keep regulators happy.
How SafeMoon Compares to Other Memecoins
SafeMoon wants to be a memecoin. It’s like Dogecoin or Shiba Inu. But there are differences. Dogecoin has no supply cap. SafeMoon burns tokens. Shiba Inu has a big community. SafeMoon’s is smaller. Solana helps SafeMoon compete. It’s faster than Ethereum, where Shiba Inu lives. But memecoins rely on hype. SafeMoon’s past makes hype hard. It needs a strong community.
Dogecoin vs. SafeMoon
Dogecoin started as a joke. It grew big. Its market cap is $15 billion in 2025. SafeMoon’s is $41 million. Dogecoin doesn’t burn tokens. SafeMoon does. Dogecoin has Elon Musk’s support. SafeMoon has VGX. Dogecoin’s community is huge. SafeMoon’s is rebuilding. SafeMoon’s Solana move could help. But it needs more fans.
Shiba Inu vs. SafeMoon
Shiba Inu is another memecoin. It uses Ethereum. Its market cap is $8 billion. SafeMoon’s Solana base is faster. Shiba Inu has games and NFTs. SafeMoon dropped utility. It’s now community-driven. Shiba Inu’s community is active. SafeMoon’s is growing. SafeMoon must learn from Shiba Inu. Community events can help.
What’s Next for SafeMoon?
SafeMoon’s new token launches soon. It’s set for 2025. The Solana memecoin has no central team. The community drives it. VGX helps with the swap. They burned 41% of the supply. Another 8% is locked. This keeps tokens scarce. But success isn’t sure. The DAO needs active voters. Solana must stay stable. SafeMoon must keep talking to users.
Building Community
A strong community is key. SafeMoon’s “Army” supports it. But some left after 2023. On X, users want clear updates. SafeMoon must post often. Events like AMAs (Ask Me Anything) can help. Shiba Inu does this well. SafeMoon should copy them. A strong community lifts prices. It also builds trust.
Exchange Listings
SafeMoon needs exchanges. It lost many in 2023. Bitrue supports the migration. More listings could help. They add liquidity. Investors can trade easier. In 2024, new listings boosted prices 25%. SafeMoon must work with big exchanges. This helps recovery.
Conclusion
SafeMoon’s survival strategy is bold. It burns tokens to raise value. It moves to Solana for speed. It escapes bankruptcy with VGX’s help. The DAO gives power to users. But challenges remain. Prices swing. Trust is low. Rules are strict. SafeMoon must communicate clearly. It needs a strong community. Try following their X updates. Share your thoughts below! Check our crypto basics guide for more.
Also Read: Elon Doge: How Musk’s Moves Sparked the Biggest Meme Coin Revolution Yet
Disclaimer: This article is only for information. It is not financial advice, not investment advice, and not a promotion. I do not have any partnership, sponsorship, or affiliate link with SafeMoon or any other project mentioned. Please always do your own research before making decisions. I am not responsible for any loss or problem that may happen from using this information.
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