Floki DAO unanimously approves ETP funding
Floki DAO unanimously approves ETP funding
In a move highlighting the growing crossover between cryptocurrency and traditional finance, the Floki DAO has unanimously voted to allocate liquidity from its community buyback wallet to support the launch of a Floki exchange-traded product (ETP).
Scheduled to debut in Q1 2025, the ETP will trade on the SIX Swiss Exchange, Switzerland's largest stock market, offering European investors exposure to the memecoin.
A Floki spokesperson emphasized the listing’s potential to solidify the token’s legitimacy: “This is an unprecedented move for memecoin legitimacy and will place Floki alongside some of the most recognized financial products globally.” Despite the milestone, Floki’s price declined by 3.6% in the last 24 hours, according to CoinMarketCap, a reminder of the volatile nature of the memecoin sector.
2024: A year dominated by memecoins
The memecoin market surged in 2024, with CoinGecko data showing an average return of 2,185% for investors, second only to the artificial intelligence sector. Memecoins captured 31% of investor interest, surpassing Bitcoin in Google search trends in October 2024. Platforms like Pump.fun on Solana, which generated $365 million in revenue by November, played a significant role in the sector's meteoric rise.
However, the growth has not been without controversy. Critics, including former Binance CEO Changpeng Zhao, have questioned the speculative nature of memecoins, calling for blockchain development to refocus on utility and real-world applications.
The Floki ETP reflects a shift toward legitimizing memecoins in mainstream finance. If successful, it could encourage similar projects and bridge the gap between speculative assets and institutional investors. As the memecoin market continues to evolve, balancing innovation with meaningful utility will remain critical to sustaining its momentum and investor trust.
Previously, Floki launched a university to simplify learning about blockchain and cryptocurrencies.
