SafeMoon (SFM): tokenomics, risks and score
A 2021 token built on a ten percent transaction tax that became one of the most heavily promoted retail phenomena of that cycle, and whose executives were later charged with fraud.
What SafeMoon is, and what it does
This asset has failed. It is recorded here so that a search returns what actually happened rather than promotional material that is still online.
What the SFM token itself does: A ten percent tax on every transaction was split between existing holders and a liquidity pool. The tax made selling expensive by design, which was marketed as a feature.
Where it runs: BNB Chain. Mechanism: BEP-20 token with transaction tax. It has been running since 2021, so roughly 5 years.
The facts
- TICKER
- SFM
- SECTOR
- Failed and defunct
- CHAIN
- BNB Chain
- LAUNCHED
- 2021, so around 5 years of operating history
- MECHANISM
- BEP-20 token with transaction tax
- MAXIMUM SUPPLY
- 1 quadrillion originally
- VALUE CAPTURE
- None
- UPGRADE CONTROL
- Team controlled
- VESTING
- Complete
- LIQUIDITY BAND
- Micro cap. Thin, often a single venue or pool. Treat the quoted price as indicative only.
How the score breaks down
Each dimension is explained on the directory page, and the reasoning behind it is taught in the Academy research process.
Supply and value capture
A hard maximum supply that cannot be raised without the agreement of essentially every participant. The token captures no protocol revenue. Any value rests on governance rights, speculation, or future changes that have not happened yet.
A ten percent tax on every transaction was split between existing holders and a liquidity pool. The tax made selling expensive by design, which was marketed as a feature.
The founding team retains control over upgrades or parameters. Ownership is heavily concentrated. A small number of wallets hold enough to determine the price on their own.
Where it is strong and where it is not
- None. Executives were charged with fraud and the company entered bankruptcy.
- Executives charged by the SEC and DOJ, with a conviction secured in 2024
- Liquidity publicly claimed to be locked was diverted
- A ten percent transaction tax made exiting deliberately expensive
- The company filed for bankruptcy and the token is effectively worthless
Incident history
The SEC and DOJ charged SafeMoon executives with securities fraud, wire fraud and money laundering, alleging they diverted liquidity pool funds they had publicly stated were locked.
The chief executive was convicted. The company filed for bankruptcy.
Our read
The main risk
The project failed and its executives were charged and convicted of fraud. Nothing remains to invest in.
Before you buy anything
Check the contract address against the project's own documentation rather than a search result or a screener link, since impersonation tokens with identical names and logos are listed constantly. Check the order book depth before assuming you can exit at the quoted price. And write down what would make you wrong before you buy, not after. The Academy thesis module covers why that single habit protects more capital than any indicator.