Following the unlocking of its token's transferability, the price of the Safe (SAFE) token experienced a significant decline of 42%, plummeting from $3.26 on the day of unlocking to $1.88 on April 30. The Safe token contract had been unsuspended on April 23, allowing holders to initiate transfers. These tokens had been locked for two years following a decision by the project's Decentralized Autonomous Organization (DAO) in 2022.
Before unlocking the transferability of tokens, SafeDAO conducted a vote on the proposal, with an overwhelming 99.1% of participants voting in favor. According to a spokesperson for Safe, the DAO opted to delay token issuance to facilitate "progressive decentralization." This approach involved collaborating on a roadmap covering various aspects such as governance processes and resource allocation, ensuring maturity in these areas before unlocking tokens.
The decision to enable token transferability came after the DAO achieved specific milestones outlined in its roadmap. According to the spokesperson, unlocking SAFE tokens adds more utility to the Safe ecosystem, advancing the movement toward a better user experience through smart accounts. This development marks the initiation of a new phase aimed at simplifying digital ownership and accessibility.
Despite the lack of token transferability and the broader crypto winter, the Safe team claims significant growth in its user base, expanding by 22x. The team also asserts securing $100 billion in assets and creating 7.5 million accounts. However, despite this growth, the token price experienced a notable decline following the enabling of token transferability. CoinGecko data shows Safe trading at $3.26 on April 23, dropping to $1.88 per coin as of the latest update—a 42% decrease post-transferability enablement.
Looking ahead, Safe is considering building an ownership layer for the Internet, where users will control their data, identities, and assets within the Web3 space. Plans include implementing native integration of layer 2 to enhance scalability and cross-chain functionality and organizing community events to foster ecosystem growth.
