After unlocking the token’s transferability, the price of the safety token plummeted 42%, from $3.26 on the day of unlocking to $1.88 on April 30.
Safe’s token contract was released on April 23rd. activate Holders transfer their tokens. The token has been locked for two years after the project’s Decentralized Autonomous Organization (DAO) decided to implement locking in 2022.
This follows SafeDAO’s vote on the token transfer proposal where 99.1% of participants voted to ratify the proposal.
A Safe spokesperson told Cointelegraph that the DAO delayed the token launch to “allow for gradual decentralization.” The DAO worked together to create a roadmap to address various areas such as governance processes and resource allocation. This allowed the community to ensure that the area was mature before unlocking tokens.
The spokesperson said the proposal to enable token transfers was made only after milestones set by the DAO were achieved. They wrote:
“Unlocking the SAFE token will bring more utility to the Safe ecosystem, strengthening the movement for better user experiences through smart accounts. “This milestone marks the beginning of a new chapter in our journey to make digital ownership easy and accessible.”
Despite the lack of token transfer possibilities and the end of cryptocurrency winter, the Safe team claimed a 22x increase in user base. The spokesperson also said that their team has secured $100 billion in assets and created 7.5 million accounts.
Despite the significant growth of the ecosystem, the token price fell significantly after the DAO enabled token transferability.
According to coin information site CoinGecko, Safe was traded at $3.26 on April 23. As of this writing, the tokens are hovering around $1.88 each. This is a 42% decrease since transfers became active.
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A Safe spokesperson said that after enabling token transferability for the project, the project is looking at building an Internet ownership layer that would allow users to control their data, identity, and assets within the Web3 space.
A spokesperson said they will implement native integrations for Layer 2 to increase scalability and cross-chain capabilities through network abstraction. It will also create community activities for the ecosystem.
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