As an analyst with a background in crypto and blockchain technology, I find the recent developments at Safe intriguing but concerning. The unlocking of token transferability, which was a highly anticipated event, led to a significant price drop of 42% for the Safe token. This is a stark reminder that the relationship between token prices and project milestones is not always straightforward.
Following the activation of token transferability, the value of Safe token experienced a significant decrease, dropping by nearly half – from $3.26 on the day of activation to $1.88 by April 30th.
The token contract managed by Safe was activated on April 23, giving token owners the ability to transfer their previously frozen tokens. These particular tokens had undergone a locking mechanism initiated by the decentralized autonomous organization (DAO) back in 2022 and remained locked for two consecutive years.
A proposal for token transferability received nearly unanimous approval from SafeDAO’s members in a vote, with 99.1% of the participants casting their votes in favor.
An representative from Safe explained to CryptoMoon that the DAO postponed distributing the tokens to facilitate “staged decentralization.” The DAO worked together on a plan addressing various aspects such as governance procedures and resource distribution. This enabled the community to fully develop these sectors prior to activating the tokens.
The representative stated that the plan for allowing token transfers was formulated subsequent to the accomplishment of the DAO‘s established milestones.
“Unlocking SAFE token brings more utility to the Safe ecosystem, powering the movement for better user experience through smart accounts. This milestone marks the beginning of a new chapter in the journey to making digital ownership easy and accessible.”
As a crypto investor, I’ve noticed some challenges in the market lately, such as limited token transferability and the ongoing crypto winter. However, the Safe team has made an impressive claim about their growth. They reported that their user base had expanded by a staggering 22 times! Additionally, they announced that they had successfully secured assets worth an astounding $100 billion, and an impressive 7.5 million accounts have been created.
Despite the ecosystem expanding substantially, the token’s value saw a dramatic decrease following the activation of its transferability through the DAO.
As a crypto investor, I’ve been keeping an eye on Safe’s performance according to the reliable coin information source, CoinGecko. On April 23rd, Safe was trading at a price of $3.26. However, currently, the token is hovering around $1.88 – a significant drop of approximately 42% since transfers were enabled.
Following the activation of token transferability for the initiative, a representative from Safe expressed that the project aims to construct the foundational infrastructure for web ownership on the Internet. This means that users would possess the power to manage their information, identity, and possessions within the decentralized Web3 environment.
The representative announced plans to introduce native integrations for layer-2 solutions, enhancing scalability and interoperability across different blockchains through network abstracting. Additionally, they will initiate community engagements within their ecosystem.
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2024-04-30 13:50