SafeMoon’s powering token, SFM, soared during the Asian session on Wednesday. It followed reports that the Web 3 platform plans to revitalize its community by airdropping its new tokens to existing holders.
Recently, Safemoon revealed plans to launch a new meme coin on the Solana blockchain, following the burn of trillions of tokens across Ethereum, Polygon, and Binance Smart Chain.
SFM Soars Amid Safemoon Airdrop and New Token Launch Plans
BeInCrypto reported on Safemoon’s transition to full community control and plans to launch a Solana-based meme coin for its holders. The network aims to streamline supply and enhance value.
The new strategy involves gradually airdropping tokens to existing holders, preventing immediate sell-offs, and ensuring sustainable growth. This announcement sent Safemoon’s governance token, SFM, soaring 108%.
“It isn’t going to be a straight airdrop. The tokens will be released along a curve over a period of time,” Safemoon explained.
SFM Price Performance. Source: CoinGecko
This announcement was in response to concerns raised by a community member. Cosmo, a popular user on X, questioned whether the airdrop would lead to a sell-off, undermining the effort to attract new investors.
“Legit question: you are airdropping old investors with new tokens when they swap their dead ones. Won’t that cause a dump? How is that attracting new investors?” the user asked in a post.
SafeMoon addressed these concerns by assuring that the gradual release strategy would mitigate immediate selling pressure. They believe long-term holders who have shown resilience through challenging periods will continue to support the project. Specifically, these holders are expected not to “instadump” their airdrops.
“The best way to bring more people into the Community is by making it available to them on a place that is easier to swap and is more meme-oriented. This is Solana,” Safemoon added.
The project’s transition follows significant challenges, including legal issues in 2022. Now, under the VGX Foundation’s ownership, SafeMoon is fully community-controlled. In its community-driven approach, SafeMoon aims to create an active ecosystem without traditional roadmaps or centralized control, embracing the power of meme culture.
The new token will be swappable through the VGX wallet, injecting liquidity into the ecosystem and revitalizing the community. The community’s enthusiasm is palpable, as the 108% surge in value signals renewed confidence in the project’s future.
Nevertheless, the team also warned users about potential scams during this transition. Safemoon also articulated that the official contract for the new token is not yet public.
“Wow, ‘Safemoon Support’ must have hired an entire army overnight… oh wait, they’re all SCAMMERS. If you see a reply or get a DM, it’s a trap,” read the warning.
Notably, SafeMoon’s strategic choice to launch on Solana leveraged its meme-centric culture and user-friendly environment. It believes this will attract new users and reinvigorate the existing community.
