SafeMoon In-Depth Analysis: A Cautionary Tale from Frenzy to Silence

Once a community frenzy in 2021, SafeMoon (SFM) is currently in an extremely depressed state. As of February 4, 2026, the SFM price fluctuates within the range of $0.0000028 to $0.0000030. This price sharply contrasts with the historical data recorded by CoinLore—where the token reached a high of $0.00312 in January 2025 before rapidly declining.

History and Current Situation: From Community Craze to Legal Troubles

SafeMoon was launched in March 2021, initially positioned as a DeFi protocol based on Binance Smart Chain. It introduced an innovative tokenomics model: a 10% tax on each transaction, with 5% redistributed to holders and 5% added to the liquidity pool. This mechanism aimed to incentivize long-term holding, but its complexity also planted hidden risks.

In its early days, SafeMoon quickly amassed a large community support base. In 2021, its market cap reached $642.0 million, with an average daily trading volume exceeding $8.5 million. Much of this growth was driven by social media hype and fervent enthusiasm for the “to the moon” slogan. However, this momentum did not last. In 2022, as the entire crypto market entered a bear phase, SafeMoon’s value plummeted, with an annual return of -99.77%.

The real turning point came at the legal level. In 2023, the U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) filed fraud lawsuits against the SafeMoon founding team, with team members ultimately convicted in federal court. This event severely undermined market confidence, causing SafeMoon’s price to remain depressed for a long time. The legal proceedings not only eroded investor trust but also affected exchanges’ support for SFM.

Multiple Factors Behind the Price Decline

From a data perspective, SafeMoon’s performance has been dismal. According to historical records, the token peaked in January 2025 before sharply falling. Its volatility in 2025 reached 40,329.7 T%, indicating highly unstable market behavior. This extreme fluctuation is the result of multiple overlapping factors.

Technical vulnerabilities are a primary concern. In 2023, a bug in SafeMoon’s smart contract was exploited by hackers, resulting in the theft of approximately $9 million in liquidity funds. This incident caused direct asset losses and exposed serious security flaws in the project. Meanwhile, issues during the migration from V1 to V2, including high transaction taxes, also led to significant losses for many users.

Legal risks further worsened the situation. The founding team faces legal investigations not only in the U.S. but also in other jurisdictions. These lawsuits delayed project development plans, hindered the launch of new features, and discouraged potential partners.

Structural market issues are also significant. The high transaction taxes in SafeMoon’s tokenomics effectively limit its use cases in daily transactions, making it more of a speculative tool than a practical token. When market sentiment shifts, this model struggles to sustain long-term value.

Current Challenges and Difficulties

As of early February 2026, SafeMoon faces unprecedented challenges. CoinLore’s data shows that the token has had no valid price information since October 13, 2025, and is marked as “inactive.”

The token migration plan is the most closely watched development. The new team proposes migrating SFM to the Solana blockchain and implementing DAO governance. This strategy aims to fix the project structure and governance mechanisms, but progress has been slow and has yet to show significant signs of recovery.

Community division is becoming more severe. Long-term holders are visibly disappointed with the project’s performance, while new investors remain cautious about the migration plan. This split weakens the core community support, making recovery even more difficult.

Trading liquidity is nearly exhausted. According to Gate platform data, liquidity for SFM trading pairs is extremely low, with wide bid-ask spreads. Under such conditions, even small trades can disproportionately impact the price, further suppressing trading activity.

The regulatory environment continues to tighten. Globally, oversight of DeFi projects is becoming more rigorous. As a project that has faced legal action, SafeMoon faces additional compliance pressures and listing hurdles in this environment.

Future Outlook and Uncertainty

Market observers remain cautious about SafeMoon’s future. Although the new team has proposed recovery plans involving Solana migration and DAO governance, implementing these plans requires time, funding, and community support—resources that the project currently lacks.

Potential for technological transformation. Moving to the Solana blockchain could theoretically offer higher transaction speeds and lower fees, but it requires extensive development work and community consensus. This migration is still in its early stages, and its success will directly influence the project’s future.

Regulatory compliance challenges. As a project with a legal record, SafeMoon will face stricter scrutiny in any jurisdiction. Future developments must operate within a compliant framework, which could limit innovation and market expansion.

Price predictions vary widely. Different analysis platforms offer divergent forecasts for SafeMoon’s future price. Some models assume a fixed annual growth rate, such as 5%, projecting a price of $0.005290 by 2026.

However, these forecasts often overlook market volatility and project-specific risks, limiting their reliability. Many experts believe that SFM’s revival depends on successfully resolving legal issues, completing technological migration, and rebuilding community trust.

Investor Perspective and Risk Considerations

From an investor’s standpoint, SafeMoon exemplifies a high-risk, highly volatile asset in the crypto space. Its historical data shows that in 2025, the token experienced extreme fluctuations, with volatility reaching 40,329.7 T%, far exceeding traditional investment risk levels.

Risk assessment points. Anyone considering investing in SafeMoon should be fully aware of multiple challenges, including legal proceedings, technological migration risks, community splits, and liquidity shortages.

Portfolio allocation. High-risk assets like SafeMoon should be strictly limited in an investment portfolio. Historical data indicates that such assets can disproportionately negatively impact overall investment performance.

Source verification. When evaluating SafeMoon or similar projects, investors should prioritize data and analysis from reputable platforms like Gate, avoiding reliance on social media or overly optimistic price predictions.

Long-term perspective. The crypto market is cyclical, and projects often rise and fall rapidly. SafeMoon’s story serves as a reminder that short-term hype does not necessarily translate into long-term value; fundamental analysis remains essential.

The Solana migration plan is seen by some community members as a lifeline, but technological transformation requires time and funding—resources that SafeMoon currently lacks. A community developer admitted on a forum: “We’re like trying to put out a forest fire with a leaky bucket.” As of February 4, 2026, SafeMoon’s price remains stuck within the narrow range of $0.0000028 to $0.0000030. CoinLore’s data shows that the token’s annual volatility once soared to an astonishing 40,329.7 T%, but now it has almost lost all volatility. This experiment leaves behind not just a token code, but ongoing reflections on the complex relationship between community-driven projects, tokenomics, and legal boundaries in the crypto world.