The price of a memecoin rivaling Dogecoin ($DOGE) and Shiba Inu ($SHIB) has recently exploded after Tesla, Twitter, and Space X CEO Elon Musk published pictures of his dog, named Floki, as the CEO of the microblogging platform he owns.
In separate tweets, Musk published pictures of his dog in front of a desk with various documents, including one that was representing the dog as the CEO of Twitter and included his name, Floki.
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 cryptocurrency was created as a meme shortly after Musk revealed his Shiba Inu dog was named Floki.
The meme-inspired cryptocurrency’s Twitter account quickly responded to Musk’s pictures, taking advantage of the opportunity.
As a result of Musk’s tweets, the price of the cryptocurrency has been exploding upward, and is now up over 75% over the last seven days, and up over 40% in the past 24-hour period.
The cryptocurrency has risen over 540% year-to-date.
$FLOKI’s price has also been surging after it 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.
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.