Floki's (CRYPTO: FLOKI) decision to invest $200,000 in its sister memecoin project, Simon's Cat (CRYPTO: CAT), spurred a substantial rise in the price of the popular dog-themed token, while also causing a spike in the feline token.
What Happened: On Thursday, Floki revealed its intention to invest $200,000 in Tether (CRYPTO: USDT) from its treasury into the Simon's Cat token, which is inspired by the popular cat animation series of the same name.
This decision was made following a vote by the Floki DAO, which saw an overwhelming 97.72% approval. According to the proposal, the tokens will be purchased via CAT's private sale, at a valuation of $20 million.
Floki added that the purchased tokens would be held as a treasury reserve asset, along with Ethereum (CRYPTO: ETH), BNB Coin (CRYPTO: BNB), and native tokens like FLOKI and TokenFi (CRYPTO: TOKEN).
ANNOUNCEMENT: FLOKI DAO PASSES VOTE TO INVEST $200,000 FROM THE FLOKI TREASURY IN SIMON'S CAT TOKEN
— FLOKI (@RealFlokiInu) August 22, 2024
After a decisive vote by the $FLOKI DAO, with 97.72% approval, #Floki will allocate $200,000 USDT from the Floki Treasury to invest in the $CAT token, which will be held as a... pic.twitter.com/cNLTPIFH0a
It was earlier revealed that CAT tokens would be airdropped to eligible users, with 20% of the supply reserved for FLOKI holders.
FLOKI, which is named after Tesla CEO Elon Musk's Shiba Inu dog, rose more than 4% in the last 24 hours. The cryptocurrency was the best-performing $1 billion capitalization memecoin over the week, significantly outstripping Shiba Inu (CRYPTO: SHIB) and Dogecoin (CRYPTO: DOGE).
Additionally, CAT pumped 72% into the development, according to data available on CoinMarketCap.
Why It Matters: This move by Floki represents a significant shift in its strategic direction. The cryptocurrency project has been gradually transitioning from its initial meme coin status by expanding its ecosystem.
Developing a metaverse game Valhalla, launching a real-world asset tokenization platform called TokenFi, and introducing staking and banking features, have been some of its initiatives toward building a utility-driven ecosystem.
Floki recently announced a one-year partnership with the English Premier League, where its token and Valhalla game will be prominently featured across various platforms.
Price Action: At the time of writing, FLOKI was exchanging hands at $0.0001372, up 4.3% in the last 24 hours, according to data from Benzinga Pro.
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