Floki Inu ($FLOKI), a Shiba Inu ($SHIB) competitor and popular meme-inspired cryptocurrency, recently became the most acquired token among the 500 largest whales on the $BNB chain after the project proposed a massive token burn.
According to whale monitoring website WhaleStats, the 500 largest whales on the $BNB chain possess an average of $4.9 million $FLOKI tokens, making it the most widely held token among these whales, with Cardano ($ADA) coming in second.
Other substantial token holdings for these whales include Aave’s native token ($AAVE), the network’s native $BNB token, and competitor meme-inspired cryptocurrency Dogecoin ($DOGE). It should be noted that some of them are tokenized copies of these currencies on the $BNB Chain, rather than the tokens held directly on their native networks.
After its creators proposed late last month to burn approximately $55 million of its FLOKI tokens and reduce a transaction tax in order to position Floki as a viable DeFi challenger and address security vulnerabilities connected with cross-chain bridges, $FLOKI became the largest holding among BNB Chain whales.
FLOKI is the Floki ecosystem’s utility token, which “provides a 3D NFT Metaverse, DeFi utilities, a crypto education platform, NFTs, a retail store, and more.”
The plan was supported by an overwhelming majority of the cryptocurrency community, and it stated that burning tokens reduces supply, which adds value to each token as long as demand remains steady. Furthermore, by taking this step, the Floki team intends to demonstrate a strong focus on usefulness and basics, which will help the project stand out in the crowded DeFi market.
The proposal also emphasized the security issues involved with cross-chain bridges, which have sparked much controversy in the cryptocurrency industry. The Floki team warned that an exploit on their major cross-chain bridge would be disastrous for the project because it now houses 55.7% of FLOKI’s total circulating supply.