Project Introduction

Safemoon is a cross-chain decentralized finance project launched in March 2021. It quickly gained popularity due to its high-yield mechanism and community-driven marketing, encouraging long-term investors to benefit from its price appreciation. Safemoon was initially launched on the Binance Smart Chain and later expanded to Polygon and the Ethereum network. The Safemoon protocol is a combination of RFI token economics and automatic liquidity generation protocol.

In 2022, the project upgraded from V1 version to SFM 2.0 version. After June 2024, the VGX Foundation took over SafeMoon, announcing further expansion of its ecosystem and launching centralized exchanges and NFT markets to attract more users and capital inflows.

Safemoon project logo (Image source:https://safemoon.com/）

Project link

Social media

Official website entrance:https://safemoon.com/

X (Twitter): https://x.com/safemoon

Telegram: https://t.me/safemoonv2

Discord:https://discord.com/invite/safemoon

Application Download

iOS system: https://apps.apple.com/us/app/safemoon/id1579735495

Android system:https://play.google.com/store/apps/details?id=net.safemoon.androidwallet&pli=1

Trading Entrance

SAFEMOON Swap: https://swap.safemoon.com/#/swap

Bscscan:https://bscscan.com/token/0x42981d0bfbAf196529376EE702F2a9Eb9092fcB5

Etherscan:https://etherscan.io/token/0x16631e53c20fd2670027c6d53efe2642929b285c

Polygonscan:https://polygonscan.com/token/0x0a654cb371fbc3c49ccb176984d64e86fc931eea\

Mechanism of Operation

SafeMoon’s core operation is based on three main functions: reflection, LP acquisition, and burn. These functions work together to incentivize token holders, stabilize token price, and achieve long-term value growth of the SFM Token.

1. Reflection mechanism

SafeMoon’s reflection mechanism incentivizes long-term holding behavior by providing static rewards to holders. The longer users hold SFM tokens, the more accumulated rewards they receive, with the distribution ratio depending on the size of their holdings. This mechanism not only increases holders’ earnings but also effectively alleviates the market selling pressure caused by early investors selling in large quantities, thereby maintaining a relatively stable price for SFM tokens.

1. Liquidity providers receive

SafeMoon’s liquidity acquisition mechanism supports market liquidity stability through transaction fee distribution to liquidity pools and holder rewards.

In the initial version, SafeMoon liquidity providers charge a 10% transaction fee on token sales, which is then divided into two parts. 5% goes into SafeMoon’s liquidity pool, and the remaining 5% is distributed to token holders based on the proportion of tokens they hold.

However, after migrating from V1 to V2, SafeMoon introduced a new transaction fee, which is a 2% transaction fee for automatic LP token sales, just like V1, with 1% of the fee allocated to token holders and the other 1% deposited into the liquidity pool.

1. Burn mechanism

SafeMoon uses a manual burn model as its token deflation mechanism, reducing the token supply by regularly removing SFM tokens from circulation to adjust the token’s market availability, enhance the token’s long-term value stability, and optimize asset supply balance.

Token Information

Token Name: $ SFM

Total supply: 1,000,000,000,000 coins

Token Type: BEP-20/ ERC-20

Contract Address:

Binance Smart Chain: 0x42981d0bfbAf196529376EE702F2a9Eb9092fcB5

Ethereum: 0xe574c0c33A7A67d9b09F9F0AdDBB3CA71A8F3E0

Polygon: 0x0a654cb371FBC3C49Ccb176984D64E86fc931EeA

Token SafeMoon native Binance Chain information (Image source:https://bscscan.com/token/0x42981d0bfb)

How to buy SAFEMOON

Currently, SAFEMOON tokens can be traded on centralized exchanges (CEX) and decentralized exchanges (DEX). Among them,Gate.ioWhen mainstream trading platforms have provided SFM/USDTTrading pairs provide users with convenient trading channels.

To purchase SFM tokens, users need to create an account on Gate.io and complete identity verification (KYC) and related security certifications.

Gate.io exchange registration/login page (login page:https://www.gate.io/zh/login)

In the second step, users need to deposit fiat currency into their Gate.io spot account through bank transfer, C2C trading, or on-chain deposit.

Currently, the recharge methods provided by the Gate.io platform (recharge page:https://www.gate.io/zh/buy-sell-crypto?method)

After completing the recharge, select the SFM/USDT trading pair on the trading interface to buy and sell and obtain SafeMoon tokens.

Safemoon trading page (Image source: https://www.gate.io/en/trade/SFM_USDT)

Other purchasing methods:

Because SafeMoon also supports a variety of digital wallets, such as VGX Wallet, MetaMask, or Trust Wallet, etc., which are key tools for participating in the SafeMoon ecosystem, users can stake and participate in other functions of the SafeMoon ecosystem according to their personal needs, as follows:

First, create a new wallet according to the instructions, and remember to keep your personal mnemonic and private key safe to ensure the security of your assets;

Next, through trusted exchanges (such as Gate.io)Buy supported cryptocurrencies, i.e. BNB or ETH;

Enter the wallet address newly created in the previous step to recharge these assets into the newly registered Ethereum wallet.

Afterwards, useSAFEMOON SwapWhen the decentralized trading platform is connected to the DApps built into these wallets, select the contract address of the SFM token and exchange it with the deposited ETH. After confirming the transaction, wait for the blockchain network to process it. Once it is successfully completed, you can view the SFM balance in your wallet. This process is also secure and efficient, helping users to enjoy a comprehensive digital asset experience.

Wallet types supported by SAFEMOON (Image source:https://swap.safemoon.com/#/swap）

Risk Warning

As of February 2, 2025 (UTC+0), the fully circulating market value of Safemoon Token is approximately $20.0212 million, and the token price is $0.000036, with a long-term downward trend. This pessimistic performance may be related to the following factors:

Fundamental project deterioration \
The team failed to deliver on the promise of mainnet upgrade and decentralized exchange ecosystem in 2023. Since VGX Foundation took over SafeMoon last year, the core developers of the team collectively resigned in Q3 2024, and the project’s GitHub code repository has not been substantially updated for over 18 months, causing the project development to stagnate.

Token economic model flaws exposed \
The transaction tax mechanism of the project (5% destruction + 5% coin holding dividend) forms a death spiral in the long-term decline: price decline -> trading volume shrinks -> tax revenue is insufficient to support dividend expectations -> coin holders accelerate their exit. On-chain data shows that the proportion of holdings by the top 10 addresses plummeted from 42% in 2023 to 17% in 2025, with continuous divestment by whales.

Community trust collapse \
In 2024, the exposure of the abuse of multi-signature wallet permissions (the team transferred $8 million in liquidity without community voting) triggered a large-scale rights protection movement. The daily active users of the Reddit community plummeted by 92% year-on-year, the interaction volume on Twitter/X accounts dropped to zero, reflecting a complete breakdown of consensus.

Currently, SAFEMOON has dropped out of the top 3000 on CoinMarketCap, with a daily trading volume of less than $500,000. Technically, the token price has fallen below the key psychological support level of $0.00004, with the open interest approaching historic lows, indicating the market is in a ‘zombie token’ state. Investors are advised to be highly vigilant against the risk of going to zero and, if necessary, refer to the ‘Guidelines for the Bankruptcy Liquidation of Cryptographic Assets’ to prepare materials for safeguarding their rights.

SFM Token Price Trend (Image Source:https://www.gate.io/zh/trade/SFM_USDT)

Conclusion

The early success of SAFEMOON is mainly attributed to its innovative token economic model and community-driven operation. However, with the changing market environment and internal management flaws, its development gradually fell into difficulties. The ecosystem of SAFEMOON has been difficult to support its initial growth goals and market positioning. Currently, the market performance of SFM tokens continues to be weak, with shrinking liquidity, and the project development has shown obvious stagnation. For investors, attention needs to be paid to the long-term survival risks that this project may face, and a more cautious attitude towards potential investment decisions.