Is Safemoon V2 a Legit Goldmine or a Disaster Waiting to Happen?

Safemoon, launched in March 2021, quickly caught people’s attention because of its unique features: it offers static rewards, manually burns tokens, and has a self-sustaining liquidity pool. These features are designed to reward long-term holders, increase scarcity, and improve stability. In December 2021, Safemoon upgraded to Version 2 (V2), reducing its total supply by a 1:1000 ratio. Now, there are 1 trillion tokens in total, with 223 billion developer tokens burned and 777 billion tokens available for trading. Currently, about 372 billion tokens are in circulation due to ongoing burns.

As of July 2, 2025, Safemoon V2 trades at around $0.000013 USD, with a 24-hour trading volume of $562K and a market cap of about $5 million. These figures indicate that Safemoon is in the smaller market cap category, showing moderate trading activity but also high volatility and risk.

Safemoon V2 has tried to stand out through important technological efforts. One big step was launching Safemoon Swap, a decentralized exchange made to help with the V2 migration. During this process, investors had to migrate their tokens by a certain deadline or face a 100% tax, which was a controversial move and received criticism for putting pressure on holders. Another significant project was the Safemoon Card, a debit card designed to allow users to spend Safemoon and other cryptocurrencies with a 2.5% fee. It was originally planned to launch in July 2022, but its release has been delayed.

More recently, the VGX Foundation acquired Safemoon’s technology, prompting users of the Safemoon Wallet to update their apps to regain functionality and access the integrated VGX decentralised exchange (DEX). While this move signals efforts to revitalize the ecosystem, the absence of firm updates on the Safemoon Card and other promised features continues to raise concerns about the project’s execution.

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Safemoon’s biggest challenge remains its ongoing legal battles. In November 2023, the SEC charged SafeMoon LLC, its founder Kyle Nagy, and executives John Karony and Thomas Smith with fraud and unregistered offering of crypto securities. According to the SEC’s complaint, the defendants promised to take Safemoon’s price “Safely to the moon,” but instead caused billions in market cap losses, withdrew over $200 million in crypto assets, and allegedly misused investor funds for personal gain. Further legal woes include lawsuits accusing executives and celebrity endorsers of running a “pump and dump” scheme, where they encouraged investors to hold while secretly selling their own tokens. The controversies have deeply damaged trust in the project. Discussions on Reddit reveal community disillusionment, with some users citing bankruptcy filings and a sense of abandonment.

Goldmine or Risky Gamble?

Is Safemoon V2 a great investment or a big risk? The evidence mostly suggests it’s the latter. Despite its popularity and meme coin hype, Safemoon faces serious legal problems like SEC fraud charges and multiple investor lawsuits, along with ongoing operational challenges. These issues make its future uncertain. For investors, Safemoon is a high-risk bet. It’s important to be careful, do thorough research, and honestly assess your risk tolerance. In the fast-changing and unpredictable crypto market, the future of Safemoon is far from guaranteed.

FAQs

1. What is Safemoon V2?
   Safemoon V2 is a meme coin relaunched in 2021 with tokenomics like static rewards and burns, but it’s controversial due to legal issues.
2. Why is Safemoon considered risky?
   SEC fraud charges, lawsuits alleging pump-and-dump schemes, and delayed projects like the Safemoon card raise concerns about its legitimacy.
3. What’s the current price of Safemoon?
   As of July 2, 2025, Safemoon is trading at around $0.000012 USD with a $7.91 million market cap.
4. Could Safemoon be a good investment?
   It has high-risk, high-reward potential, but legal troubles and volatility make it more likely a disaster than a goldmine.
5. What do experts say about Safemoon?
   Some remain optimistic about community efforts, while others warn of scams due to past fraud allegations and investor losses.s Safemoon V2 a Legit Goldmine or a Disaster Waiting to Happen?