FLOKI DAO overwhelmingly voted in favor of a proposal to allocate tokens to provide liquidity for the creation of a FLOKI ETP (Exchange-Traded Product). A portion of 16,310,285,772.6 tokens in a “community buyback wallet” will provide liquidity for the Floki ETP while the rest is burned.
Floki ETP—the proposal and passage
On December 25, 2024, FLOKI DAO submitted a proposal to allocate a portion of its treasury to provide liquidity for the upcoming ETP. The portion consists of 16 billion FLOKI tokens, valued at approximately $2.8 million.
The initiative is aimed at providing institutional investors with regulated exposure to the token on the SIX Swiss Exchange, one of Europe’s largest stock exchanges.
The proposal received over 204.9 billion votes cast in favor, with none opposing. This reveals the community’s long-term potential and its strategic direction.
It also signifies a significant shift in the memecoin ecosystem as the second memecoin to launch a European ETP. This paves the way for other memecoins to follow suit, which could lead to a shift in how meme coins are perceived in the broader financial landscape.
Implications for FLOKI price
The ETP enhances the credibility of FLOKI as an asset class. This could attract more serious investors who have previously been hesitant to engage with memecoins.
Listing on the SIX Swiss Exchange will make it accessible to a broader audience, including traditional investors. The increased exposure from institutional investment could drive demand, positively impacting its price.
Finally, the token burn mechanism planned for the launch of the ETP reduces supply and increases scarcity. This may lead to price appreciation of the FLOKI token.
Price action and technical analysis
FLOKI/USD (Source: TradingView)
FLOKI is currently trading at $0.00017774 at a market cap of $1.70 billion. The RSI of 51.32 indicates that the token is in a neutral zone, neither overbought nor oversold.
However, recent RSI trends have dropped below 50 within shorter timeframes like the 4-hour and 2-hour charts, hinting at a bearish sentiment. This suggests that despite the neutral overall market condition, there are pressures pushing the price downward in the short term.
Recently, FLOKI’s MACD has crossed down its moving average in shorter timeframes, reinforcing a bearish outlook. This further supports the notion of weakening momentum after the ETP announcement.
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