Safe price is up nearly 7% after Vitalik Buterin's comment on multisig wallets
- Safe price posted a nearly 7% gain on Wednesday after Vitalik Buterin said he uses the platform's wallet to store his funds.
- Vitalik Buterin says multisig wallets are a way to decentralize security and are better than Shamir backup.
- SAFE appears to be recovering from a dip following the enabling of transfers.
SAFE, the native cryptocurrency of Safe wallet, rose nearly 7% on Wednesday after Ethereum co-founder Vitalik Buterin revealed he uses the wallet to store his funds.
Read more: Ethereum plunges outside key range briefly as US Dollar Index gains strength
Vitalik Buterin uses Safe wallet
Following a recent increase in phishing scams and wallet hacks, an X user recommended that crypto investors use hardware wallets instead of hot wallets. He highlighted that hardware wallets could help investors better secure their funds since they are offline and users would rarely sign transactions with them. "Your hardware wallet will be your fortress of solitude," he said.
In response, another X user discussed the downsides of hardware wallets, stating, "The biggest risk becomes yourself." Some of the risks he mentioned include someone discovering your seed, forgetting where your seed is, and traveling due to emergencies after putting your seed in a bank vault.
Following this, Vitalik Buterin commented on the exchange on Wednesday. He mentioned that the risks in hardware wallets are why he uses the Safe multisig wallet for storing more than 90% of his funds.
Also read: Bitcoin price crashes below $58K, tests Bull Market Support Band
Multisig wallets are cryptocurrency wallets that require multiple private keys to access or transfer assets.
Buterin mentioned that users could hold some of the keys and allow others they trust to hold the rest while ensuring not to reveal who those other people are, even to each other. "Decentralize your own security," he said.
The above is why I use a multisig (@safe) for >90% of my personal funds
— vitalik.eth (@VitalikButerin) May 1, 2024
M-of-N, some keys held by you (but not enough to block recovery), the rest held by other people you trust. Don't reveal who those other people are, even to each other.
Decentralize your own security.
While another user added Shamir backups - another crypto wallet security standard - Buterin noted they're "way easier to screw up than a multisig."
Following Buterin's comments, the price of SAFE quickly shot up despite the general crypto market downturn. SAFE increased from a low of $1.70 to $1.92 before setting around $1.89 at the time of writing. SAFE had plummeted in the past seven days after the Safe DAO enabled the transfer of SAFE tokens on April 23rd.
SAFE could enjoy more gains in the coming days as Buterin's comments could attract more users to try out the Safe wallet and engage with its token. The Safe team has also been partnering and integrating with key players across the crypto ecosystem, and its Safe Con web3 developer conference may trigger a rally for the SAFE token.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
