Safe Token's Price Plunges 42% After Token Transferability Activation
Summary:
Following the activation of token transferability, Safe token's price dipped by 42% from $3.26 to $1.88. The token transfer was enabled after Safe's decentralized autonomous organization's deliberate delay to ensure "progressive decentralization". Despite restrictions and a crypto winter, Safe's user base grew 22 times with assets of $100 billion secured and 7.5 million accounts created. Future plans include building an internet layer to allow users to control their web data, identity, and assets.
Following its token transferability activation, Safe token suffered a 42% drop in its value, been valued at $3.26 on the day the transferability was activated, down to $1.88 on April 30. Safe enacted the unpause feature for its token contract on April 23, giving individuals the ability to transfer their tokens. Since 2022, these tokens had remained inactive as a result of a directive by Safe’s decentralized autonomous organization (DAO). This directive was informed by a voting exercise that saw about 99.1% of the voting populace endorse the proposal. In a discussion with Cointelegraph, a representative from Safe explained that the delayed release of the tokens was a strategic move aimed at achieving gradual decentralization. Steps for gradual decentralization include planning a roadmap to guide areas like governance procedure and allocation of resources in a bid to effectively manage these areas before the tokens were released. The spokesperson added that transferability was activated only after the roadmap's goals had been met. "The activation of SAFE token transferability suggests potentials for the Safe ecosystem. It sparks up efforts toward better user experience with smart accounts. This significant step ushers us into a new era in our quest to simplify and democratize digital ownership," the spokesperson noted. Despite restrictions on token transferability and a crypto winter, Safe's user base reportedly grew by 22 times. The representative also mentioned that a whopping 7.5 million accounts had been created and $100 billion in assets secured. However, the value of the token dropped significantly following the activation of the token transferability feature. CoinGecko reveals that the value of Safe was $3.26 on April 23, but as of the time of reporting, the token is valued at $1.88. This indicates a 42% drop since the activation of transfers. Following the allowance of token transfers for the project, the representative stated that the next step is to build a layer of the internet that will allow users to control their data, identity, and assets on the Web3 landscape. The plan also includes integration for layer-2s to boost scalability and cross-chain capability with network abstraction, fostering activities for its community to shape its ecosystem. Safe's intention is to put users in control of their digital experience.
Published At
4/30/2024 1:42:46 PM
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