Safe Token Trades at $1.2B Market Cap After Community Votes to Unpause Transfers

A 99% majority vote resulted in the unfreezing of the SAFE token contract for transfers.

By: Mehab Qureshi Loading...

image of an open safe with coins flowing out, designed in a minimalistic style with neon colors

After a two-year wait, the SAFE token is now open for trading.

Safe, the largest Ethereum-based multi-signature wallet provider by number of wallets, on Tuesday said in a post on X (formerly Twitter), the Safe token contract “is officially unpaused and SAFE is transferable.”

SAFE was down 20% to $2.76 on its first day of trading, according to CoinGecko. The token’s market capitalization is at $1.17 billion, while its fully-diluted valuation is at $2.75 billion. An overwhelming 99% majority vote resulted in the unfreezing of the SAFE token contract for transfers.

Enhanced Token Functionality

A governance proposal on Feb. 13 laid out plans to enhance the SAFE token's functionality, building upon its existing use for governance-related voting.

"SAFE should comprise a vehicle for achieving the 'technical, economic, [and] governance decentralization' of key components of the Safe project," while also serving as a means to represent the value that comes from the growth of the Safe ecosystem, the proposal noted.

The proposal included new potential applications for the SAFE token. It suggested issuing SAFE as a reward to users of the account system, and it considered making it so that "abstracted usernames can only be claimed via SAFE."

The proposal also talked about putting SAFE into a module that would act as a "protocol-native insurance fund." Another use mentioned is the integration of the SAFE token into the planned Fee Engine.

In 2022, when the community was not in favor of allowing transfers, SafeDAO decided on five required achievements before reconsidering the token's transferability. These milestones were under discussion for the past year and concluded with a DAO vote on April 15.

There are a total of 8.25 million Safes created while total-value locked in its wallets totals almost $100 billion, according to data queried on Dune Analytics. About 1.4% of all cryptocurrency deals now happen through Safe accounts, according to Messari Research.

OKX Lists SAFE Token

Meanwhile, cryptocurrency exchange OKX has listed the SAFE token for spot trading. OKX wrote in a Monday blog post that it will feature the SAFE/USDT trading pair after conducting a company review.

In 2022, Safe raised $100 million in an investment round and the company was valued at $1.25 billion. After splitting from Gnosis last year, Safe gave out SAFE tokens to nearly 22,000 people and started a Swiss Foundation.