A Shiba Inu ($SHIB) rival and a popular meme-inspired cryptocurrency, Floki Inu ($FLOKI), has recently become the most purchased token among the 500 largest whales on the $BNB chain after the project proposed a massive token burn.
According to data from whale monitoring service WhaleStats, the 500 largest whales on the $BNB chain are holding onto an average of $4.9 million $FLOKI tokens, making it the most widely held token among these whales, with the second-largest holding being Cardano ($ADA).
Other large token holdings for these whales include the native token of decentralized finance platform Aave ($AAVE), the network’s native $BNB token, and rival meme-inspired cryptocurrency Dogecoin ($DOGE). It’s worth noting that some of these are tokenized versions of these tokens on the $BNB Chain, and not the tokens directly held on their native networks.
$FLOKI became the largest holding among BNB Chain whales after its developers made late last month a proposal to burn nearly $55 million of its FLOKI tokens and reduce a transaction tax in a move made to position Floki as a serious DeFi contender and address security risks associated with cross-chain bridges.
FLOKI is the utility token of the Floki ecosystem, which “offers a 3D NFT Metaverse, DeFi utilities, a crypto education platform, NFTs, a merchandise store, and more.”
The proposal was approved by an overwhelming majority of the cryptocurrency’s community and argued that burning tokens is a way to reduce supply, which subsequently adds value to each token so long as demand remains constant. In addition, the Floki team hopes that by taking this step, they can demonstrate a strong focus on utility and fundamentals, which will help the project stand out in the crowded DeFi market.
The proposal also highlighted the security risks associated with cross-chain bridges, which have been the subject of much debate in the crypto community. The Floki team argued that an exploit on their main cross-chain bridge would have a catastrophic impact on the project since it currently holds 55.7% of what FLOKI’s total circulating supply should be.