After activating transfers, the secure token will be reduced by 42%

After opening the token transfer, the price of Safe (SAFE) tokens dropped by 42%, from $3.26 on the opening day to $1.88 on April 30.

Safe's token contract did not expire on April 23, allowing holders to transfer their tokens. These tokens have been locked for two years following the project's decentralized autonomous organization (DAO) decision to implement the lock in 2022.

This follows the vote from SafeDAO on the token transfer proposal which saw 99.1% of participants vote in favor of the proposal.

A security spokesperson told Cointelegraph that the DAO has delayed releasing its tokens to “allow for progressive decentralization.” The DAO has collaborated on a roadmap to cover various areas such as governance processes and resource allocation. This allowed the community to verify that these areas were mature before releasing the tokens.

According to the spokesperson, the proposal to enable token transfer was put together after the milestones set by the DAO were reached. They wrote:

“Unlocking the SaFE token will bring more benefits to the secure ecosystem, powering movement through smart accounts for a better user experience. This milestone marks the beginning of a new chapter in making digital ownership easy and accessible.

Despite the lack of token transfer capabilities and crypto winter, the Safe Group has grown its user base by 22 times. The spokesperson also confirmed that his team has reached $100 billion in assets and 7.5 million accounts have been created.

Although the ecosystem has seen significant growth, the token price has seen a significant drop since the DAO enabled token transfer.

According to coin information website CoinGecko, Safe traded at $3.26 on April 23. This represents a 42% discount after enabling transfers.

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After enabling the transfer of tokens for the project, the Safe spokesperson said, the project is looking to build a layer of Internet ownership, which will allow users to control their information, identity and assets in the Web3 space.

A spokesperson said they will implement native integration for Layer 2s to enhance scalability and cross-chain functionality with network abstraction. It also creates community activities for the environment.

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