Is SafeMoon Dead?

Is SafeMoon dead in 2024? We're covering everything you need to know about the once-hyped coin - including what happened to SafeMoon and if SafeMoon is a scam.

What is SafeMoon?

SafeMoon was a cryptocurrency that proclaimed unique features and attempted to stand out in an otherwise crowded market using celebrity endorsements. Some of the features the token claimed to have included:

• Static rewards: SafeMoon used a static reward system where 50% of tokens from transaction fees (typically 10%) are redistributed to existing token holders. This incentivizes holding rather than frequent trading.

• Manual Burn: To increase scarcity and potentially boost the price, SafeMoon implemented a manual burn mechanism, systematically reducing the supply of its tokens.

• Self-Sustaining Liquidity Pool: SafeMoon had a built-in liquidity pool mechanism where tokens collected from fees were added to the liquidity pool on PancakeSwap, enhancing the token's stability and tradability.

SafeMoon 2

In December 2021, SafeMoon introduced an updated version of its token, SafeMoon V2. This new version consolidated the original tokens at a ratio of 1:1000 and reduced transaction fees to 2%, making transactions cheaper. Users holding the original SafeMoon tokens can manually switch to V2 through their wallets, while exchanges manage the migration process for tokens held on their platforms.

SafeMoon received endorsements from celebrities including social media personality and boxer Jake Paul, film producer Brett Ratner, and DJ Afrojack.

As we’ll discuss in this article, while SafeMoon claimed to have these features, in reality, many of the features were not developed or secure.

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What happened to SafeMoon?

Safemoon has had a turbulent few years, with key events including:

• March 2021: SafeMoon was launched with the slogan "Safely to the moon," referencing the crypto community's desire for tokens to "quickly rise in price." Initially, it had no utility or dedicated team.

• March - April 2021: Following endorsements from celebrities like Lil' Yachty, Nick Carter, and Logan Paul, SafeMoon's value increased by 23,225%. Despite its popularity, SafeMoon had no real-world use, and celebrities promoting it faced a class-action lawsuit for their involvement in what was branded a pump-and-dump scheme. After this surge, Braden John Karony was appointed CEO.

• May 2021: SafeMoon announced "Project Phoenix," aiming to provide technological solutions in The Gambia. The project was managed by a company run by Karony’s mother. However, it was later discontinued due to alleged supply chain problems, a claim disputed in an ongoing lawsuit.

• June - October 2021: SafeMoon began beta testing its wallet, which critics claimed was a copy of the Trust Wallet. The wallet was officially released on Google Play in September and on the App Store in October. Thomas Smith, the CTO, left SafeMoon in December 2021 amid fraud allegations.

• December 2021: SafeMoon launched Version 2 (SafeMoon V2) of its token, consolidating the original tokens at a 1:1000 ratio and reducing transaction fees. A decentralized exchange, SafeMoon Swap, was also introduced. Plans for a SafeMoon debit card were announced but delayed.

• 2022: SafeMoon faced multiple class-action lawsuits accusing it of being a pump-and-dump scheme. In April 2022, investigator Stephen "Coffeezilla" Findeisen accused SafeMoon of misappropriating funds from the liquidity pool. SafeMoon announced plans for various projects, including a cryptocurrency exchange, which faced delays.

• March 2023: Hackers exploited a flaw in SafeMoon's liquidity pool, resulting in a loss of $9 million worth of tokens. After negotiations, the hacker returned $7 million, keeping $2 million.

• November 2023: A federal indictment charged CEO Braden John Karony, founder Kyle Nagy, and former employee Thomas Smith with securities fraud, wire fraud, and money laundering. The indictment alleged they misled investors and misappropriated funds from the liquidity pool. Karony and Smith were arrested, while Nagy remained at large.

• December 2023: SafeMoon declared Chapter 7 bankruptcy and shut down, marking the end of its tumultuous journey. Throughout its existence, SafeMoon faced criticism for its lack of utility and allegations of being a meme coin and a potential Ponzi scheme.

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Was SafeMoon a scam?

Allegedly, yes. With proceedings against two of the founders ongoing and another founder still at large, it’s not yet known definitively whether SafeMoon was a scam, despite there being many common indicators that it is. At best, the project may have been managed extremely poorly, at worst, SafeMoon may have been a Ponzi scheme.

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Should I invest in SafeMoon?

Given the current legal proceedings against SafeMoon, it’s very unlikely that SafeMoon is a good investment. As well as this, the majority of crypto exchanges have halted trading for the token.

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Can I buy SafeMoon?

The vast majority of crypto exchanges have halted trading for SafeMoon, and the few that are have extremely low liquidity for some trading pairs (i.e. SFM/USDT). As such, it’s unlikely you’d be able to buy SafeMoon in 2024.

Is SafeMoon dead?

In all likelihood, yes, SafeMoon is dead. SafeMoon is no longer listed on the majority of exchanges, and trading volume has almost ceased. The founders declared bankruptcy in 2023 and there are ongoing legal proceedings against three project members.