thecryptobasic.com
Floki (FLOKI) has spiked 28% over the past two days amid the market-wide resurgence and a recent disclosure suggesting that a market maker is looking to purchase $10 million worth of the asset.
The official Floki X account called attention to the pivotal development today, spotlighting an official announcement from the team.
Per the disclosure, DWF Labs, a Web3-focused investment company and leading market maker, will commit a whopping $10 million to buy Floki.
The investment, which represents one of the avenues through which the company aims to support the Floki ecosystem, will be spread across two years, with plans to dispense the amount from the Floki treasury within this period.
DWF LABS TO PURCHASE $10,000,000 IN FLOKI TOKENS TO SUPPORT THE FLOKI ECOSYSTEM
DWF Labs will purchase $10,000,000 in $FLOKI tokens as part of their commitment towards supporting the #Floki Ecosystem.
FULL ANNOUNCEMENT: https://t.co/ZNTsiyqZzp pic.twitter.com/gBdx6w6ygO
— FLOKI (@RealFlokiInu) February 27, 2024
According to the press release, the Floki team sees this as a measure through which the token could position itself to leverage the upcoming bull market, as the continuous accumulation trend from the investment would likely help bolster demand and increase buying pressure.
The $10 million investment, which represents up to 2.2% of the total Floki market cap, could procure 216,778,668,978 (216 billion) Floki tokens. A massive demand of this magnitude, though spread across an elongated period, could bode well for the asset.
Notably, Floki’s collaboration with DWF Labs is not a recent endeavor. Both entities disclosed their partnership last May, culminating in the commitment of $5 million from the investment firm to procure Floki tokens. In November 2023, DWF Labs received 120M Floki from the Floki team.
After sealing the partnership with Floki, DWF Labs has continued supporting the ecosystem through multiple avenues, including facilitating Floki listing on exchanges, publicity, and the recent investment commitment.
Floki Records Price Spike
Meanwhile, the Floki token has leveraged the recent disclosure and the broader market upsurge to record massive gains over the last two days. The asset has increased 28% within this timeframe, making it one of the biggest gainers in the market.
Floki first recorded an intraday gain of 17.89% yesterday, closing the day at a $0.00004329 price. This upsurge was primarily driven by Bitcoin’s (BTC) upward momentum. The disclosure of the investment, which came up today, has compounded the bullish sentiments around Floki.
This resulted in a price spike, as the crypto asset briefly reclaimed the $0.000051 territory, surging to a high of $0.00005107 today before facing resistance. Floki now trades for $0.00004642, with a massive 726% surge in 24-hour trade volume to $231,871,979.