Bonk Rockets 30% to Lead Dog Meme Rebound; Floki Termed ‘Utility Token’ by CFTC

What to know:

As a seasoned analyst with over two decades of experience in the financial markets, I must admit that my initial skepticism towards memecoins has slowly eroded over time, especially when it comes to projects like Floki (FLOKI) and Bonk (BONK).

On Saturdays, the Solana-based token known as Bonk (BONK) experienced significant growth in the realm of memes with a dog theme, while Bitcoin rebounded and surged past $98,000. This recovery came a day after an intense sell-off on Friday that momentarily dropped its value to around $93,000.

In the last 24 hours, BONK experienced a notable increase of 30%, according to CoinGecko data. Meanwhile, other dog-themed tokens such as Dogecoin (DOGE), Shiba Inu (SHIB), DogWhatever (WIF), and Floki (FLOKI) saw gains of up to 20%. On average, the dog-themed token category grew by 8%, outperforming the broader market’s rise of 4.5% as indicated by the CoinDesk 20 (CD20) index.

Memecoins are famous for their extreme price fluctuations and often surpass major cryptocurrencies during periods of market growth. Essentially, they function as an amplified wager on the general mood or trend within the cryptocurrency market.

In this situation, the basics seem to be supporting price increases and optimism for certain meme coins. FLOKI was mentioned together with Ether (ETH) and Avalanche’s AVAX as a useful token during a Commodity Futures Trading Commission (CFTC) meeting last month.

As a crypto investor, I recently learned about a proposed new category of digital assets, known as utility tokens, through the Global Markets Advisory Committee (GMAC). These tokens are defined by six criteria, with one key aspect being that they offer immediate, non-incidental usage within a cryptocurrency platform. However, it’s important to note that these tokens do not grant governance or voting rights to their holders.

The Global Markets Advisory Committee of the Commodity Futures Trading Commission (CFTC) recently spotlighted FLOKI as an example of a utility token, a significant recognition that endorses FLOKI’s focus on utility,” shared Floki’s lead developer with CoinDesk via Telegram. “FLOKI’s Valhalla metaverse game is set to launch in the early quarter of 2024, and the recently launched Floki Trading Bot has amassed more than a million dollars in fees.

This sets Floki apart significantly from other meme coins, particularly as the market shifts and investors begin to focus on the underlying values once more,” B stated.

In other places, the curiosity around BONK is growing due to various actions aimed at reducing the token’s circulation, which are becoming more popular among users. This trend, historically, has led to increased prices.

In simple terms, BonkDAO, a community of individuals who support the bonk token, destroyed 100 billion tokens from the available supply in November and aim to eliminate another 1 trillion by December. Such a large reduction in supply could potentially boost the token’s worth due to its increased scarcity.

The feat could meet its target in the weeks ahead, observers say.

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2024-12-21 14:12