Sudden 42% Drop in Safe Token as Transfers Enabled
Following the decision of its decentralized autonomous organization (DAO) to implement a lock in 2022, Safe token’s transferability was unlocked, causing a significant drop in its price. The token contract was unpaused on April 23, allowing holders to transfer their tokens that had been locked for two years. After a vote from SafeDAO on a token transferability proposal, 99.1% of participants voted in favor of the proposal. The DAO chose to delay releasing the tokens in order to achieve progressive decentralization and collaborate on a roadmap covering areas like governance processes and resource allocation.
According to a spokesperson from Safe, the proposal to enable token transferability was only developed after the DAO met its milestones. The unlocking of the SAFE token is seen as a major step towards improving user experience through smart accounts and advancing digital ownership accessibility.
Despite the lack of token transferability and the challenging market conditions, the Safe team reported a remarkable growth in its user base, with a 22-fold increase. They claimed to have secured $100 billion in assets and witnessed the creation of 7.5 million accounts. The enabling of token transferability resulted in a steep drop in the token’s price. CoinGecko data shows that on April 23, the token traded at $3.26, but it currently sits at $1.88 per token, representing a 42% decrease.
The Safe project aims to build the ownership layer of the internet where users can have control over their data, identity, and assets within the Web3 space. To achieve this, the spokesperson mentioned plans to implement native integration for layer-2s to enhance scalability and cross-chain functionality. They also expressed the intention to create community activities to support the ecosystem’s growth.
12 thoughts on “Sudden 42% Drop in Safe Token as Transfers Enabled”
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Safe needs to earn back the trust of its investors after this disastrous decision.
Enabling token transferability is a major step towards improving user experience and advancing accessibility in digital ownership. Great to see Safe taking steps in the right direction!
It’s unfortunate that the token’s price took such a hit after unlocking transferability. However, I trust that Safe’s team has a solid strategy in place to navigate these challenges and achieve their goals.
It’s hard to take the Safe project seriously when they make decisions that lead to such negative outcomes.
The Safe team should have focused on improving the user experience instead of unlocking the token prematurely.
I had high hopes for Safe, but this token unlock has shattered my confidence in their ability to make sound decisions. 🙅♀️
This unlocking decision feels like a betrayal to those who believed in the project.
The drop in token price may seem discouraging, but it’s important to look at the bigger picture. Safe’s focus on improving user experience and advancing digital ownership accessibility will surely pay off in the long run. Stay positive! 💪📈
The Safe team might have seen growth in their user base, but that doesn’t excuse the significant decrease in token value.
Losing 42% of its value in such a short span of time is a disaster for Safe token holders. 💸
Creating community activities to support ecosystem growth is a wonderful initiative. It’s important to have an engaged community to drive the success of projects like Safe. Exciting times ahead! 🙌💚
Securing $100 billion in assets is definitely a significant milestone for Safe. They must be doing something right to attract such a large amount of assets in challenging market conditions.