Dormant Multisig Liquidates Entire SAFE Holding at a Significant Loss
A dormant multisig wallet, identified as 0xe42ba45b44c4ece4d2894285e7afd59aa7bebe14, has recently liquidated its entire SAFE token holdings. The wallet sold off all 334,025 SAFE tokens for approximately $228,334 worth of USDC, at a price of $0.684 per SAFE.
This move comes after a ten-month holding period during which the wallet had accumulated the SAFE tokens through various airdrop contracts of Safe (formerly Gnosis Safe). The initial acquisition of these tokens occurred on October 4 and 7, 2023, at an average price of $3.26, amounting to a total investment of approximately $1.09 million.
The liquidation represents a significant loss for the multisig wallet, with a total loss estimated at around $860,448.
The reasons behind this sudden liquidation remain unclear. Possible explanations include:
Market conditions: The decision to sell might have been influenced by prevailing market conditions and the desire to realize some value from the SAFE holdings.
Project abandonment: The multisig wallet might be associated with a project that has been abandoned or is no longer active.
Tax implications: The liquidation could be driven by tax-related considerations.
Regardless of the reasons, the liquidation of such a large SAFE holding is a noteworthy event that could impact the token's price and market sentiment.
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