By
Chimamanda U. Martha
April 22nd, 2024
Safe further noted that it will use the raised funds to build an ecosystem of applications and wallets by using Safe smart contract accounts via grants and accelerator programs.
Digital asset management platform Gnosis Safe announced that it has raised $100 million in funding through a token sale led by 1kx. The crypto management platform will use these funds for expanding its smart contract account ecosystem.
Along with crypto fund 1kx, more than 63 contributors participated in the funding. Some of the big names include A&T Capital, Tiger Global, Blockchain Capital, Polygon, ConsenSys. Also, individual investors like NFT Influencer Punk6529 participated in the funding.
Gnosis Safe Token Sale
The announcement also marks the company’s rebranding to Safe. Earlier in April 2022, a community vote led to the decision of spinning off from parent firm Gnosis. Safe has emerged as a popular crypto wallet for its use of customizable smart contracts.
Users can access the smart contracts accounts on Gnosis through a smart contract code instead of a seed phrase or a private key. Safe leverages smart contracts to customize account security. It facilitates transaction authentication via multiple private keys (multisig), or community approval.
Safe believes that smart contract accounts prevent hacks by offering tools of authentication via DAOs. They also provide spending limits and automation along with recovery and inheritance mechanisms. Commenting on their recent rebranding to Safe, Gnosis Safe lead Lukas Schor explained:
“How it emerged initially is in 2017, when we launched a token for Gnosis, we had many digital assets to manage so we wanted to do this self custody in a secure way. And so we built our own multi-sig smart contracts to manage these assets. We open-sourced this and saw adoption and suddenly it grew from an internal tool to an ecosystem project with a team working on it.”
Expanding into the Market
Safe has been undertaking several expansion moves. Over the last few years, Safe has expanded from a single-product offering to a multi-application. Its multi-wallet ecosystem also allows teams to build atop Safe’s smart contract technology which is fully customizable for specialized use cases.
More than 30 teams have been building on top of Safe as of date. Safe further noted that it will use the raised funds to build an ecosystem of applications and wallets by using Safe smart contract accounts via grants and accelerator programs.
Schor said that the funds will also help them weather the extended bear market.