May 23, 2024
Safe token transfers impact
Latest Cryptocurrency News

Safe Token Plummets by 42% After Token Transfers Unlocked

Following the unlocking of Safe (SAFE) tokens for transferability, the token’s value witnessed a sharp decline of 42%, dropping from $3.26 to $1.88 by April 30.

Unlocking Token Transfers:
Safe’s token contract was unfrozen on April 23, allowing holders to initiate token transfers. These tokens had remained locked for two years, following the decision made by the project’s decentralized autonomous organization (DAO) in 2022.

Community Decisions and Milestones:
The decision to enable token transfers came after a significant vote within SafeDAO, where 99.1% of participants approved the proposal. The DAO had delayed the release of tokens initially to ensure a gradual decentralization process, collaborating on a roadmap covering governance and resource allocation milestones. The proposal for token transferability was only finalized after achieving these critical milestones.

Impact on Safe Tokens and Future Plans:
Despite claims of a 22x growth in its user base and securing $100 billion in assets with 7.5 million accounts created, Safe’s token experienced a substantial price drop post-transferability. CoinGecko data shows the token trading at $3.26 on April 23, which fell to $1.88, indicating a 42% decrease since transfers were enabled.

Safe’s spokesperson: 
Safe’s spokesperson emphasized the project’s commitment to building a robust ownership layer for the internet, offering users control over their data, identity, and assets in the Web3 realm. Plans include integrating with layer 2 solutions for scalability, cross-chain functionality, and fostering community engagement within its ecosystem.

Image by freepik

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