SafeMoon is preparing to launch a new memecoin on the Solana blockchain at 1:00 AM UTC this Saturday, offering holders a chance to swap their tokens amid low liquidity conditions.

The SafeMoon team, according to the VGX Foundation, has recently burned 2.2 trillion SFM tokens across the Ethereum, Polygon, and Binance Smart Chain networks. Nearly all of the SFM supply on Ethereum and Polygon has been destroyed, along with about 60% of the Binance Smart Chain supply.

To facilitate the transition, SFM holders will be able to exchange their tokens for the new SafeMoon memecoin via the VGX wallet. VGX explained that this move will allow community members to liquidate their positions, hoping to relist the new token on exchanges and boost liquidity, enabling holders to recover some of their investments.

SafeMoon was a standout project during the 2021 crypto bull market, reaching a peak market cap of $17 billion, but it has since seen its market cap drop to approximately $41 million, with the token delisted from most exchanges.

In 2023, the previous executive team faced charges from the Department of Justice for allegedly defrauding investors by withdrawing over $200 million from supposed locked funds for personal luxuries. Following this, SafeMoon filed for bankruptcy in December 2023 and was acquired by the VGX Foundation.